1. The Dust Bowl and the New Deal

2. The Dust Bowl

4. Dust Bowl (lasted almost 10 years)
Causes:
Poor agricultural practices,
drought and winds
worst drought ever
1935- FDR under the FERA gives $525 million for drought relief
WPA-puts 8.5 million to work
Okies – migrated to California
1939-RAIN finally arrives

5. Running from Dust Storm
Okies

7. Franklin D. Roosevelt (FDR)
32nd President
Former Gov. of NY
Democrat
4 Terms,
Handicapped from Polio
President during GD and WWII
Gave people hope and confidence during the GD

8. The Splendid Deception
FDR

9. Roots of the New Deal Programs

10. The New Deal
New Deal
Name FDR gave to his new program to fight the Depression
It was a revolution in American society - changed completely the way gov't functions
the first phase of the New Deal dealt exclusively w/ eco. Reform
unlike Hoover, FDR believed gov't legislation/involvement was crucial to stimulate the economy

11. Roots of New Deal Progressive Reform World War I: New York Gov. FDR:
use gov’t to solve problems
World War I:
War Boards regulate economy
New York Gov. FDR:
relief for needy
pensions
unemployment insurance
public power projects

12. Basic Ideas Behind New Deal on how to Solve the Great Depression
Pump Priming and Deficit Spending – Pump money into the economy:
put cash into people’s hands;
Fed. Emergency Relief Administration ($500 mill. to states)
Spend money the Federal Government does not have
Use “deficit spending” (Keynesian economics) spend more to create jobs for unemployed
Create scarcity to increase prices
problem of over-production AAA & NIRA
Regulate banks & stock market,
restore confidence of investors:
Emergency Banking Act/FDIC /Security & Exchange Commission SEC

13. Basic Ideas (cont.)
Cheap electricity, control flooding (gov’t controlled)
provide jobs
Tennessee Valley Authority (TVA)
Protect the elderly & disabled
Social Security Administration (insurance, not welfare)
Increase economic activity

14. Relief Recovery Reform NEW DEAL IDEALS Of Unemployment Of the American
PWA, CCC, WPA, FERA
Recovery
Of the American
Economy
NRA, AAA, TVA
Reform
Programs to Prevent
Another Depression
FDIC, SEC, Social Security

15. Supporters of the New Deal
New Deal Coalition
Voters who supported FDR and his policies
Made up of:
Laborers
Farmers
Unemployed
Young
Old
Intellectuals
Minorities

16. New Deal Programs

17. FDR’S PROGRAM First New Deal (1st One Hundred Days):
Immediate relief, regulate business, banks & stock market
Second New Deal (2nd One Hundred Days):
More social reform affects ordinary Americans

18. The First Hundred Days “This nation asks for action, and action now.”
March 4-National Bank Holiday
March 9-Emergency Banking Act
March 20-Government Economy Act
March 31-Civilian Conservation Corp (CCC)
April 19-Renunciation of the Gold Standard
May 12-Federal Emergency Relief Act
May 12-Emergency Farm Act
May 12-Agricultural Adjustment Act (AAA)
May 18-Tennessee Valley Authority (TVA)
May 27-Truth-in-Securities Act
June 5-Abrogation of the Gold Clause
June 13-Home Owner’s Loan Act
June 16- National Industry Recovery Act
June 16-Glass-Steagall Banking Act
June 16-Farm Credit Act
June 16-Railroad Coordination Act

19. Banking Relief Banking Holiday 3/5 – 3/9, 1933 All banks are closed
Inspected by treasury
If sound reopen on Monday
Restores peoples’ confidence in banks
Need people to deposit $ so banks can give out loans to people and business
Fireside Chats – informs people of actions gov’t is taking and why

20. Gov’t actions in Economy
Security Exchange Commission (SEC)
Police NYSE
Regulate buying on margin
More Money into Circulation
Off the gold standard
Gov’t buys up more gold
More money in circulation = increase in wages, prices and causes inflation
Gov’t should spend money to stimulate economy
Keynesian Economics

21. Gov’t Actions in the Economy
Glass – Steagall Banking Reform Act (1934)
Limits investment practices of banks
FDIC
Gov’t backs up bank accounts to $2,500

22. Alphabet Soup Programs

23. National Recovery Administration (NRA)
Part of National Industry Recovery Act
Established to encourage fair business practices in order to help business Recover during Great Depression
Ruled Unconstitutional
Schechter Poultry v. U.S.

26. Public
Works
Administration
(PWA)
1935

27. Triborough Bridge
PWA Project

28. Fort Knox
PWA Project

30. Civilian
Conservation
Corps

31. CCC Built Pool

32. Works
Progress
Administration

34. Agricultural Adjustment Act (AAA) - 1933
Ruled Unconstitutional in Butler v. U.S.
Rewritten and passed again
Restore farmers' purchasing power and to restore the family farm
Paid farmers SUBSIDIES to not produce certain crops or breed certain animals
Criticisms
Paying farmers to not farm when millions are starving
Plantation owners are paid not to farm so they fire sharecroppers
Food Stamp Act of 1939
Excess food used to feed hungry

35. TENNESSEE VALLEY AUTHORITY

37. TENNESSEE VALLEY AUTHORITY (TVA) - used to promote hydroelectric power, control flooding - lower rates  private industry, manuf. fertilizer fed. gov't. took ownership (nationalization v. privatization)

38. TVA Built Dams
Which led to…

40. SOCIAL SECURITY
Unemployment Insurance
Old Age Pension Payments

41. Social Security Act (1935)- feared by opponents as "creeping socialism"- this act typifies the WELFARE STATE - unemployment insurance, old age pensions
Problem: it took some $ out of circulation (payroll deductions) at a time when purchasing power was already low- also, it only covered the unemployed
"Soak The Rich" tax

44. Minimum Wage
Maximum # of Hrs. per Workweek