1. Chapter 26 FRANKLIN D. ROOSEVELT AND THE NEW DEAL

2. What can we learn from these photos?
Using the internet and your phone/netbook, find out as much as possible about these 2 iconic photos from the Great Depression. Look for things like:
- Who took the photo?
- When and where was it taken?
- Who are the people in the photos?
- What is their story?

3. What is the “Great Depression”
After researching the 2 photographs select 2 more photographs that capture the Great Depression.
Research the background of each photo (When, where and by whom was it taken)
Research the subject of the photo
Explain your reason for selecting it and explain how it represents large issues or trends during the Great Depression

4. An Endless Party
1920s optimism drove increase in expectations of continual improvement
Many Americans became convinced that the old boom and bust cycle of business was a thing of the past.
Let the good times roll!!

5. Causes of the Great Depression
Post WWI effects on the economy
Trouble for farmers
Too many people in debt
Uneven distribution of wealth

6. Post WWI Effects on the Economy
After WWI the countries of Europe did not have to buy all their products from us. They started making their own goods.
High protective tariffs cut into trade. Tariffs are taxes on goods coming into the country. If people in Europe can’t sell stuff to us, they won’t have money to buy our stuff. European countries also put high tariffs on our goods to retaliate.
During the war, many European countries borrowed money from American banks. After the war, because of the tariffs and the slow down of their economy, they could not pay back those loans, putting American banks in financial trouble.

7. Trouble for Farmers
Because of new equipment, farmers were producing more crops on the same amount of land. This overproduction caused prices to drop and farmers could not pay back their loans.
European countries did not need to buy food from us after the war, they started growing their own food.

8. New Farming Technology

9. Too Many People in Debt
During the 1920’s, people got over-extended with easy credit. To buy all of the new things (cars, refrigerators, washing machines, vacuum cleaners, etc.) many people used the installment plan. This plan meant that people would make monthly payments on the products. When people lost their jobs or the banks called the loans, many lost everything.
Some people were playing the stock market on credit. They could buy on margin which meant that they could buy stock by putting 10% down and promising to pay the other 90% later. If the stock value went up, they make a lot of money. If the value went down, they often couldn’t pay the banks the 90% owed.

10. Newer Nicer Home

11. Too Many Toys

12. Uneven Distribution of Wealth
During the 1920’s, the rich were getting richer and the poor were getting poorer.
This impacted the economy by the end of the decade. The poor people could not afford to buy all the new appliances that the businesses were producing.
After all the rich people had several cars and a house full of appliances, there was no one left to buy the stuff.
The businesses started filling warehouses with unsold goods and had to lay workers off.

13. Rich and Poor

14. Rich and Working Class

15. The Great Crash - Speculation
1928: Soaring stock prices attracted individual, corporate investment
1929: Stock market crashed
Directly affected 3 million
Credit crunch stifled business
Businesses laid off workers

16. The Great Crash
New 1920s economy failed to distribute wealth broadly enough
Money used for profits, dividends, and stock speculation should have been used for wage increases
Productivity increased 43%, wages only by 11%

17. Unemployment, 1929–1942

18. Effects of the Depression
Hardship affected all classes
The middle class lost belief in ever-increasing prosperity
Thousands of young homeless, jobless

19. Hoover and Voluntarism
Hoover initially sought solution through voluntary action, private charity
Eventually aided farmers with Farm Board to buy surpluses and bankers with loans through Reconstruction Finance Corporation

20. The Bonus Army Bonus Army & General MacArthur
Resisted Democratic efforts to give direct aid to the unemployed
Perceived as indifferent to human suffering

36. Bank Failures, 1929–1933

37. The Emergence of Roosevelt
Franklin Roosevelt
Born to wealth and privilege
1921: Crippled by polio
1928: Elected governor of New York
Talented and persuasive politician
1932: Defeated Hoover with farmer- worker- immigrant-Catholic coalition

39. The Hundred Days
FDR inaugural inspired with the term “nothing to fear, but fear itself”
Banking system saved from collapse
Fifteen major laws provided relief
Tennessee Valley Authority was the most ambitious one
New Deal aimed to reform and restore, not nationalize, the economy
The 3 “R’s” Relief, Recovery, & Reform

40. The Tennessee Valley Authority

41. Roosevelt and Recovery
National Recovery Administration
Industries formulated codes to eliminate cut-throat competition, ensure labor peace
codes favored big business, unenforceable
1935: NRA ruled unconstitutional
Agricultural Adjustment Act of 1933
farmers paid to take land out of cultivation
prices increased, mainly because of government payments, but Dust Bowl helped by cutting supply
sharecroppers, tenant farmers dispossessed

42. Roosevelt and Relief
1933: Harry Hopkins placed in charge of RFC to direct aid to unemployed
1933: Civilian Conservation Corps provided employment to young people
1935: Works Progress Administration placed unemployed on federal payroll
Programs never sufficiently funded

43. WPA – Works Progress Administration
Spent $11 Billion to give jobs to over 8 million workers
Many projects built parks, airports, roads, and public buildings
Also hired professionals
they hired photographers, historians, artists, archaeologists
Post office murals, slave narratives, and Angel Mounds were all done by the WPA

44. Angel Mounds

45. Slave Narratives & daily Life

46. Art projects

47. Helping the Young People
NYA – National Youth Administration
Created jobs and provided education, counseling, and recreation for young people
Built Helfrich Park Pool House

48. American Liberty League
Liberty League was made up of those who said Roosevelt was going too far.
They attacked the New Deal by saying it assaulted property rights.
Contained a lot of rich industrailst

49. Challenges to FDR
Father Charles Coughlin advocated nationalizing banks, anti-Semitism
Francis Townsend called for $200 per month pensions to all those over 60 if they spent it within the month
Huey Long and the Share the Wealth Clubs called for redistribution of wealth by seizing private fortunes

50. Roosevelt’s Critics
Father Charles Coughlin – catholic priest from Detroit
Wanted guaranteed annual income and nationalization of the banks
Had as many as million listeners
Eventually shut down because of anti-Semitism

51. The Old People’s Doctor
Dr. Francis Townsend
Doctor and health officer from California
Proposed a pension plan for the elderly
A little like Social Security

52. The Kingfish Huey Long Governor / Senator from Louisiana
He wanted to be President
Created “Share our Wealth” clubs across the country
Wanted a 100% tax on everything over $1,000,000

53. Workers and Old People Social Security Act Wager Act
Created old age insurance for folks 65 and older
Provided Unemployment insurance
Gave Aid to families with dependent Children and the Disabled
Wager Act
Protected collective bargaining and the worker’s right to join labor unions
Set up the National Labor Relations Board

54. Social Security 1935: Social Security Act passed Criticisms
Too few people would collect pensions
Unemployment package inadequate
Established pattern of government aid to poor, aged, handicapped

55. Labor Legislation 1935: Wagner Act 1938: Fair Labor Standard Act
Allowed unions to organize
Outlawed unfair labor practices
1938: Fair Labor Standard Act
Maximum hour
Minimum wage
Rural Electrification Administration brought electricity to 90% of farmers who did not have it in 1930

56. Impact of the New Deal
Had a broad influence on the quality of life in the U.S. in the 1930s
Helped labor unions most
Helped women, minorities least

57. Rise of Organized Labor
1932: National Recovery Act spurred union organizers
Congress of Industrial Organization (CIO) formed by John L. Lewis
CIO unionized steel, auto industries
1940: CIO membership hit 5 million, 28% of labor force unionized

58. The New Deal Record on Help to Minorities
Crop reduction program allowed whites to fire or evict blacks, Hispanics
Public works programs helped by providing employment
New Deal figures convinced minorities that the government was on their side
1934: Indian Reorganization Act gave American Indians greater control

59. Women at Work Position of women deteriorated in ‘30s
Jobs lost at a faster rate than men
Hardly any New Deal programs help
Progress in government
Frances Perkins, Secretary of Labor, the first woman cabinet member
Women appointed to several other posts
Eleanor Roosevelt a model for activism

60. End of the New Deal 1936: New Deal peaked with Roosevelt’s reelection
Congress resisted programs after 1936

61. The Election of 1936 FDR’s campaign
Attacked the rich
Promised further reforms
Defeated Republican Alf Landon
Democrats won lopsided majorities in both houses of Congress
FDR coalition: South, cities, labor, ethnic groups, African Americans, poor

62. The Election of 1936

63. The Supreme Court Fight
Supreme Court blocked several of FDR’s first-term programs
1937: FDR sought right to "pack" Court
Congressional protest forced retreat
FDR’s opponents emboldened

66. The New Deal in Decline 1936: Cutbacks for relief agencies
1937: Severe slump hit economy
Roosevelt blamed, resorted to huge government spending
1938: Republican party revived

67. The New Deal and American Life
New Deal’s limitations
Depression not ended
Economic system not fundamentally altered
Little done for those without political clout
Achievements
Social Security, the Wagner Act
Political realignment of the 1930s