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The Great Depression & New Deal (Part 3)
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Tennessee Valley Authority
Flood control, Electricity, Irrigation, Water supply, Work program
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Works Progress Administration WPA
Largest government agency and largest employer in the U.S. at the time 1935 employed 8 million Bridges, roads, reservoirs, irrigation, sewage, schools, playgrounds, education, training Work Programs paid minimum wages, pulled people off charity and soup lines “We Work Again”
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1935 Social Security Act Safety net for all Americans
Percentage of paycheck Federal old-age pension program Funding for the States to administer: Disability benefits Mother and child benefits Unemployment insurance Public health programs
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Financial Reforms **Glass-Steagall Act (Re: 2008?)
Federal Deposit Insurance Corporation (FDIC) Insured individual bank deposits Securities and Exchange Commission (SEC) Regulated trading practices in stocks and bonds
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Problems with, and resulting from the New Deal
Local agencies administered relief provided by Feds and ran programs (deserving vs. undeserving model, sometimes race and class-based) Conservatives and Republicans complained about the bloated bureaucracy (1 million government employees by 1943, compared to only 600,000 in 1932)
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Problems with New Deal (cont’d)
However comprehensive the ND programs were, they failed achieve their goal of ending the Depression Unemployment rate was still 19% by 1939, and gap between rich and poor remained largely unchanged National debt rose from 23 billion at the end of Hoover’s term to 48 billion by 1940 (making conservative economists howl!)
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The Dust Bowl Economic and environmental disaster
Overproduction, monoculture farming Plowed up grasses and cleared trees during WWI for farms to meet the needs of a booming wheat market Resulted in soil exhaustion, soil erosion Drought and winds 1935: Dust flew on wind from CO and NE, blackened the sky across the plains, reaching the Eastern seaboard
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Migrants: Okies Poor farmers and sharecroppers
Evicted from OK, TX, MI, ARK Going to CAL L.A. Police Chief “bum blockade”
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Mexican and Okie Farmworkers
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Mexican “Repatriation”
Mexicans & Mexican Americans sent to Mexico Nearly 1 million L.A. County deported 12,000 Colorado deported 20,000
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The Indian New Deal John Collier Progressive
Reverse assimilation policies Restore land rights Focus on self government and tribal government Preserve cultures
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Indian Reorganization Act
IRA, 1934 Economic & political assistance Tribal Constitutions overseen by the BIA Out of 252 tribal groups, 174 voted “Yes” and 78 voted “No”
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