1. The Great Depression Begins
Chapter 14

2. Economic Downfall Key businesses were barely hanging on
Farm prices dropped throughout the decade
“Farmer’s have never made money. I don’t believe we can do much about it?”
Less money to spend
Business cost(Labor, materials, overhead) barely covered by sales, any problems losses
Income from sales minus costs (margin) was less and less.
Not as much disposable income for businesses or individuals

3. People begin living on credit 70% of families make less than $2500/yr
Living on credit from the local store for food, clothes, housing
Today the amount would be about $17000/ year

4. The Election of 1928 Employment was good Wages up.
Stock Market strong.
Democrats had no shot

5. Hoover Promised “a chicken in every pot and a car in every garage.”
Had never been elected to office before.
People were happy the way things were.
Promise- food for everybody and luxury items.
Hoover administrator during WWI- made sure all fed- US and Europe

6. Herbert Hoover

8. The Crash! Dow Jones was 300 points higher than 5 years earlier.
Views were overly optimistic.
October 29, 1929 the market goes caput.
Prices go even lower on Black Thursday

10. Everyone sells stocks trying to save their money.
Bankers try to halt the crash.
Market falls another 92 points.
$6-$9 billion in losses.
600 banks close in 1929/1930
Normal people lost everything

14. Causes Small market for American goods Farm problems Too much credit
Unequal distribution of wealth
Stock pooling/overspeculation

15. Daily Life in Cities
Lose jobs, evicted, end up living in the streets/parks/etc…
Live in shantytowns
Waiting in soup and bread lines
African-Americans & Hispanics hit hardest

19. Hoovervilles

23. Farms Too much food to sell. Could not pay to send to market.
Many farms get repossessed
400,000 from
Drought begins in mid-west
Many become very desperate

24. Reaction Dust Bowl Crops not strong enough to hold down soil.
Many farmers head west looking for work.

25. Leaving the Dust Bowl

33. John Steinbeck

34. Response Rugged Individualism Did not believe in handouts
Would only slow recovery
Economy only in a slump.
Wait it out
“People will work harder and live a more moral life.”

35. 1932:Hoover--- Most unpopular man in country.
Community Chests: Private organizations to help needy.
Gov’t help would bring corruption.
Relied on indirect help.

36. Huey Long

38. Bonus Army 15,000 WWI veterans march on D.C. to get bonuses.
Scheduled for 1945: needed now.
Communist rumblings flow
Senate turns down bill

39. Gave funds for journey home: Most stayed.
Police ordered to evacuate everyone.
Hoover sends in army after 2 vets killed.

45. Douglas MacArthur

46. The New Deal
Ch 15 Test Notes

47. Pre-Inauguration Country was on verge of a military takeover.
Extremely cold winter.
Almost Assassinated Roosevelt before in office:
Giuseppi Zangara-(5ft tall stood on chair to shoot)
Killed mayor of Chicago, wounds several others.

49. Inauguration Day March 4, 1933 Promises a New Deal, does not specify
“The only thing we have to fear, is fear itself.” (p.361)
He promises to act very quickly.

50. Roosevelt at Work

51. The New Deal The First 100 Days
March 9-June 16, 1933
“Must try something”
The three “R’s”
Relief Programs
Recovery Programs
Reform Projects

52. First Week Calls for banking holiday. March 12, fireside chats begin
Closes all banks for 1 week.
Only strong banks would re-open
March 12, fireside chats begin
Nation regains confidence in it’s institutions very quickly.

53. People Get Help The Agricultural Adjustment Act (AAA)
Lower Production
Tennessee Valley Authority (TVA) 5/18/33
Help impoverished area
Civilian Conservation Corps (CCC) p. 491

54. Civilan Conservation Corps

57. TVA Norris Dam

58. National Industrial Recovery Act (NIRA) 6/33
Creates the PWA for school construction etc…
Civil Works Administration (CWA)
40,000 schools, paid 50,000 teachers
National Recovery Administration (NRA)
Set prices and standards

59. Home Owners Loan Corp. (HOLC)
Gov’t loans to home owners facing foreclosure
Federal Housing Administration (FHA)
Low rate mortgages
Federal Emergency Relief Administration (FERA)
Direct relief to the needy

60. Banks Glass-Steagall Banking Act (2-33)
Federal Deposit Insurance Corporation
The Federal Securities Act (5-33)
Securities and Exchange Commission

61. Battle With Courts Dealt with conservative court
“Enemy of the New Deal”
Supreme Court was declaring parts of the New Deal unconstitutional.
5 in 1935, 4 in 1936

62. Cont’d When Justice does not retire at 70, Pres. can appoint another.
Felt it would save the constitution
Country felt it reeked of dictatorship
Shot down handily in Senate

63. Main Critics The American Liberty League Huey Long
Roosevelt was overstepping his bounds
Huey Long
Not doing enough
Father Charles Coughlin
Sold out to the bankers

66. Townsend Plan- Early Social Security
Everyone 60 or older $200/mo.
Eventually dropped, his popularity disappears

68. The 2nd New Deal High un-employment continues
More extensive relief sought
Re-did the AAA
Farm Security Administration (FSA)
Loans to tenants, migrant housing

69. Works Progress Administration (WPA)
Create as many jobs as fast as possible
850 airports, 651,000 miles of road, etc…
National Youth Administration (NYA)
Provide help for the youngins

70. WPA Workers

73. Fair Labor Standards Act Social Security Act
Wagner Act (NLRA)
Helps workers
Fair Labor Standards Act
Standards for hours and pay
Social Security Act
Old age insurance, unemployment, welfare system
Rural Electrification Act (REA)
Bring electricity everywhere

74. African Americans Were hit hardest by the depression
Turn from Republicans to Democrats

75.                       
Marian Anderson

78. Mexican Americans Worked jobs most everyone else did not want to do.
Program to return low-pay workers to Mexico

79. Native Americans Made very clear gains Indian Reorganization Act
Gave tribes ownership of their land again.

80. Women Made huge strides First woman cabinet member: Frances Perkins
Eleanor Roosevelt was very active in politics

81. Eleanor Roosevelt

85. Entertainment Radio Sports Movies Shirley Temple
Fred Astaire and Ginger Rogers
Gary Cooper

86. Original = “War of the Worlds

96. MY HEROES-MOE, Larry,Curly

99. The End New Deal ends in 1937 Roosevelt had lost a lot of support.
Starts scaling back projects

100. Legacy Federal Gov’t gets more power. President’s power grows
Deficit spending
Social programs (welfare)
Concern for workers
Renewed hope in democracy