1. Test X Chapter 26 FDR and The New Deal 1929 – 1938 Read Page 761 (2 day lecture)

2. Reason for the Great Depression Fall 1929 Stock Market Crashes because the price of stock had been inflated by people buying stock on credit Fall 1929 Stock Market Crashes because the price of stock had been inflated by people buying stock on credit Debt problems of farmers, consumers, and European Governments Debt problems of farmers, consumers, and European Governments Union contracts did not allow wages to fall Union contracts did not allow wages to fall Entrepreneurs had no motivation to fix the business cycle Entrepreneurs had no motivation to fix the business cycle

3. continued… Unemployment rose to as much as 25% Unemployment rose to as much as 25% Lack of a Federal Reserve system fully in place Lack of a Federal Reserve system fully in place President Hoover’s response was incorrect with his fiscal policy (Balanced Budget) President Hoover’s response was incorrect with his fiscal policy (Balanced Budget) Drought in Mid-Western plains Drought in Mid-Western plains

4. Effects of the Great Depression High Unemployment High Unemployment More blacks and other impoverished farmers were forced into cities to look for jobs More blacks and other impoverished farmers were forced into cities to look for jobs Depression got the Nation over it’s WW I cockiness Depression got the Nation over it’s WW I cockiness People turned to radio for escapism, and optimism allowing FDR a port into their homes People turned to radio for escapism, and optimism allowing FDR a port into their homes Movie makers like Disney, and Capra became dealt in inexpensive optimism and escapism Movie makers like Disney, and Capra became dealt in inexpensive optimism and escapism

5. continued… Republicans are blamed for the depression Republicans are blamed for the depression FDR will be able to unite Dems such as Solid South Yellow Dogs, Organized Labor, and Catholics FDR will be able to unite Dems such as Solid South Yellow Dogs, Organized Labor, and Catholics Allowed a paraplegic to become President (why) Allowed a paraplegic to become President (why) Allowed FDR to dominate America like no other President in History Allowed FDR to dominate America like no other President in History

6. FDR and The New Deal He used his first 100 days in office to launch a series of actions aimed at easing the Depression He used his first 100 days in office to launch a series of actions aimed at easing the Depression Closed all of America’s banks for 4 days to see which ones were in good enough shape to continue to do business Closed all of America’s banks for 4 days to see which ones were in good enough shape to continue to do business Convinced America’s Veterans and Government employees to take a pay cut including himself Convinced America’s Veterans and Government employees to take a pay cut including himself Pushed through Congressional legislation to limit farm production in an effort to prop up the price of food Pushed through Congressional legislation to limit farm production in an effort to prop up the price of food

7. continued… Pushed through legislation to help relocate farmers to areas with better soils Pushed through legislation to help relocate farmers to areas with better soils FDR allowed Big Business to get bigger as long as union workers were given more as well FDR allowed Big Business to get bigger as long as union workers were given more as well TVA was an example of the Federal Government involvement on a regional basis (many people were calling for a socialist style government plan economy, this was a compromise TVA was an example of the Federal Government involvement on a regional basis (many people were calling for a socialist style government plan economy, this was a compromise

8. continued… Civil Works Administration (CWA), Civilian Conservation Corps (CCC), and the Works Progress Administration (WPA) were all examples of a workfare systems designed to put people to work while also creating government infrastructure Civil Works Administration (CWA), Civilian Conservation Corps (CCC), and the Works Progress Administration (WPA) were all examples of a workfare systems designed to put people to work while also creating government infrastructure Pushed through creation of the Social Security Act of 1935 Pushed through creation of the Social Security Act of 1935 Chose to seek a third and fourth term to complete the mission of bringing America out of the Great Depression Chose to seek a third and fourth term to complete the mission of bringing America out of the Great Depression

9. Those Who Opposed FDR The Political Left - Huey Long a fellow Dem from LA. who felt FDR was not going far enough to help folks The Political Left - Huey Long a fellow Dem from LA. who felt FDR was not going far enough to help folks The Political Right – Businessmen and The Supreme Court who felt FDR was moving America towards a Socialist style Gov. / Eco. The Political Right – Businessmen and The Supreme Court who felt FDR was moving America towards a Socialist style Gov. / Eco.

10. Result of Criticism Long’s assassination ended any FDR opposition within his party Long’s assassination ended any FDR opposition within his party FDR back down the Supreme Court with the “Switch in Time Saves Nine” FDR back down the Supreme Court with the “Switch in Time Saves Nine” American Big Business got bigger but was forced to share more with the workforce American Big Business got bigger but was forced to share more with the workforce

11. Did it fix the Depression? Unions fought wage roll backs and entrepreneurs still had little motivation to invest Unions fought wage roll backs and entrepreneurs still had little motivation to invest Many unions including John Lewis’ United Mine Workers gained more power under FDR’s leadership Many unions including John Lewis’ United Mine Workers gained more power under FDR’s leadership While the many social programs helped it was not nearly enough to fix the problems and restore optimism in America While the many social programs helped it was not nearly enough to fix the problems and restore optimism in America

12. The Depression’s Effect on Americans Because the Depression was so harsh on the poorest of Americans, African Americans were pushed solidly into the Democratic party Because the Depression was so harsh on the poorest of Americans, African Americans were pushed solidly into the Democratic party Native American Conditions were so bad that for the first time Anglo Americans began to have pity upon them, and the Indian Reorganization Act of 1934 was passed to allow them more controls over their lands, and self government Native American Conditions were so bad that for the first time Anglo Americans began to have pity upon them, and the Indian Reorganization Act of 1934 was passed to allow them more controls over their lands, and self government

13. continued… Southern Democrats, Union Members, and New Immigrants began to view FDR as a savior thus allowing him powers no other president has ever been afforded Southern Democrats, Union Members, and New Immigrants began to view FDR as a savior thus allowing him powers no other president has ever been afforded Discuss the Age of Totalitarian Regimes Discuss the Age of Totalitarian Regimes