The Depression and The New Deal

Causes of the Depression Stock Market Crash Uneven Distribution of Wealth Overproduction in industry and agriculture

Causes of the Depression, cont’d Farmers’ income down Farmers can’t pay back loans Banks also lost money on stock purchase Banks begin to close

The Great Depression in Numbers Between 1929 and ,000 businesses closed and 9000 banks closed Unemployment went from 3.2% in 1929 to 24.9% in 1932 Stocks lost 89% of their value

The Dust Bowl

This Drought-Stricken Land by Alexander Hogue Over 350,000 “Okies” moved from that region to California in the early 1930s. John Steinbeck wrote about these migrants in The Grapes of Wrath.

The Crucified Land by Alexander Hogue

Hoover’s Response to Depression Hoover was a strong believer in “rugged individualism” Reconstruction Finance Corporation (1932)— companies and railroads Business gets help; poor do not “Hoovervilles”

The Bonus Army 1924 legislation Wanted early payment 1932 Veterans occupy DC (20,000) Hoover opposed Ordered Army to tear down shacks

Election of 1932 Hoover was renominated as the Republican candidate Hoover --insensitive Franklin Delano Roosevelt, former Governor of New York, was Democratic nominee

Election of 1932 Hoover did not believe in the government creating public works programs to relieve unemployment Americans understood that voting for FDR would mean a change in federal policy FDR won 57% of the vote and 42 of 48 states

FDR Wins Election 1932 “I pledge you, I pledge myself, to a new deal for the American people.”

3 Rs Relief (for people out of work) Recovery (for businesses & the economy) Reform (of American economic institutions)

Industry Destitute Farming Stock Market Banking Alphabet Agencies Find out more - Internet.

First Hundred Days March 4, 1933 Inaugural address Gathers “brain trust” Design programs for 3 Rs

First Hundred Days Emergency Banking Relief Act Bank holiday

Run on the Banks

First Hundred Days Civilian Conservation Corps Tennessee Valley Authority Agricultural Adjustment Act National Industrial Recovery act Glass-Steagall Banking Act

FDR’s First New Deal First Hundred Days programs—part of First New Deal Securities and Exchange Commission Federal Housing Administration U.S. drops gold standard

FDR’s Second New Deal Much of the First New Deal was devoted to Recovery Summer of 1935 more legislation begun for Relief and Reform

Second New Deal ( ) Works Progress Administration Social Security Act Wagner Labor Relations Act

Works Progress Administration

WPA—Federal Arts Projects

Oral Histories Former Slave Interviews

Opponents to the New Deal & FDR Father Charles Coughlin Dr. Francis Townsend Huey Long Election of 1936

Supreme Court Problems 1935—Schechter v. U.S. rules NIRA unconstitutional Later AAA ruled unconstitutional also (U.S. v Butler) FDR proposes “Court reform bill.”

Supreme Court problems Plan: New justices (6) Congress & public opposed FDR’s biggest defeat Supreme Court upholds program FDR eventually appoints a total of nine Justices

Recession of Economy looks better in 1937 FDR reduces funding for New Deal Economy goes into recession again Using advice from John Maynard Keynes, FDR adds a third round of New Deal spending in 1938

The New Deal and the Role of the Federal Government Completely changed role of government in the welfare of the average American Finished out Progressive Era reforms Federal government became largest single employer Had a role in schools, farms, retired people and more

The New Deal and Labor Labor union membership increased John L. Lewis creates Congress of Industrial Organizations (CIO) The Wagner Act

The New Deal and African Americans The New Deal didn’t confront racism (Scottsboro Boys trial) CCC camps were segregated Blacks become largely Democratic Eleanor Roosevelt— vocal supporter of minority rights

The New Deal and Women New Deal programs were almost exclusively for men CCC only hired men Eleanor Roosevelt again became a symbol of a new kind of woman Frances Perkins, first female cabinet member, served as Secretary of Labor from

Success or Failure? 1.Reduced unemployment by 7 million 2.Soil conservation initiated 3.The Stock Market and banks recovered. 4.Transformed the Tennessee valley. 5.Roosevelt was re-elected. 1.Still 6 million out of work in The numbers fell due to enlistment and rearmament in WW2. 3.Black people were segregated from white. 4.Women were excluded from the New Deal. 5.Tennessee benefited but many areas were still suffering.