1920S- GREAT DEPRESSION DAY 4  Today we have a QUIZ on Day 3- the transition from Hoover to FDR.

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Presentation transcript:

1920S- GREAT DEPRESSION DAY 4  Today we have a QUIZ on Day 3- the transition from Hoover to FDR

FDR AND THE NEW DEAL - the expanding role of government and the growing power of the President.

DEFICIT SPENDING John Maynard Keynes -Keynesian Economics Spending Money to Make Money  President’s often use deficit spending to stimulate the economy.  FDR will use deficit spending (spending money we didn’t have) to fund his New Deal programs.  This was all an attempt to stimulate demand by increasing income levels.

FDR’S FIRESIDE CHATS  Roosevelt made public radio addresses which he called “fireside chats.”  In these speeches, Roosevelt appealed to radio listeners for help getting his agenda passed.  Letters would pour in following each of these "chats," which helped pressure legislators to pass measures Roosevelt had proposed.

ORGANIZED LABOR American Federation of Laborers Congress of Industrial Organizations  Pushed for better working conditions, wages and benefits.  Only includes skilled white laborers.  Group of Labor Unions  Pushed for better working conditions, wages and benefits.  Willing to involve all laborers including unskilled minorities and women.

THE WAGNER ACT/NATIONAL LABOR RELATIONS BOARD  This gave unions the right to go on strike and negotiate with business management.  This made it much more possible for workers to get the rights and working conditions they sought.  Union membership rose as workers gained the right to collectively bargain with their employers.

BANKING REGULATIONS(SAFETY NET) Emergency Banking Relief Act Glass-Steagall Act/Banking Act of 1933  This law allowed only banks backed by the Federal Reserve to operate in the United States.  This effectively gave control of the banks to the government.  This law created the Federal Deposit Insurance Corporation(FDIC) which insured funds held in banks up to a certain amount.  Created regulations to protect consumers by decreasing risky investments by banks.

BANKING REGULATION Securities Exchange Commission  The SEC regulates any trading (exchanging) of stocks.  The SEC has the power to prosecute those who violate laws regarding stock exchange in the United States.

NEW DEAL ORGANIZATIONS  Tennessee Valley Authority(TVA)- the idea was designed to develop a hydroelectric plant that would distribute electric power to the Tennessee Valley. This created jobs and raised the standard of living.  National Recovery Administration(NRA)- New Deal agency designed to create fair practices in business. The NRA even went as far as setting prices to level the playing field for business.  Social Security Act  Civilian Conservation Corps(CCC)

SOCIAL SECURITY ACT (SAFETY NET)  This law provided a safety net for retirees based on the amount of taxes they had paid throughout their life.  When younger people all lost their jobs there was no one there to take care of the elderly.

DUST BOWL

DUST BOWL CausesEffects Farmers didn’t rotate their crops (use different areas of land in different seasons to allow soil to recover) The healthy topsoil eroded away…turning into worthless dust Farmers must move westward to escape the terrible conditions 440,000 leave Oklahoma (Okies) 300,000 leave Kansas

FDR’S SOLUTION TO THE DUST BOWL Civilian Conservation Corps (CCC) Plants trees in the soil to prevent further erosion. New Deal program giving jobs to young, unmarried males. Over 1 million jobs created.

WORKS PROGRESS ADMINISTRATION  The largest and most ambitious New Deal agency.  This agency created tons of jobs, mostly for unskilled workers.  Built infrastructure (roads, bridges) and developed communitites.  Funded by the Emergency Relief Appropriations Act of 1935.

WHAT DO WE LEARN FROM THIS?  President Roosevelt tried to cure the problems of the great depression through Relief, Recovery and Reform.  As President Roosevelt created more and more “New Deal” agencies, he expanded the power of the Presidency and the role of government in the lives of Americans.  The government built an enormous amount of debt through the use of deficit spending to fund the “New Deal” programs.  However, millions of Americans are going back to work and making money which they will use to buy goods and stimulate the economy.