1. THE GREAT DEPRESSION
CHAPTER 33

2. IMPORTANT: SHIFT OF BLACKS TO
ELECTION OF 1932
The election of 1932 was important b/c it determined what direction the country would take in waging war against the Great Depression
Attempted to portray optimism about the future, but most don’t feel it
“The Worst is Past”
“It Might Have Been Worse”
“Prosperity is Just Around the Corner”
Attempted to portray a sense of optimism about the future!
Many of his speeches written by the ‘BRAIN TRUST’—small group of advisors to FDR
WINNER
IMPORTANT: SHIFT OF BLACKS TO
DEMOCRATIC PARTY!!!!!!
Optimism vs. Pessimism
Franklin D. Roosevelt
Herbert Hoover

3. “I pledge you, I pledge myself to a new deal for the
FRANKLIN D. ROOSEVELT
Democratic candidate for President in 1932
Life experiences had left him with patience, tolerance, compassion, and strength of determination
Former Governor of NY where he used heavy state spending to help the needy
Praised for helping the “FORGOTTEN MAN”
Wife of FDR--Most active first Lady in American history
Known as the “Conscience of the New Deal”
Eleanor Roosevelt
“I pledge you, I pledge myself to a new deal for the
American people”
--FDR (1932)

4. THE THREE “R’S”
First thing President FDR did was declare a “BANKING HOLIDAY” so that banks would appear safe again!
FDR’s goals for his program: RELIEF, RECOVERY, and REFORM
Name for FDR’s program was called the NEW DEAL
FDR’s program will eventually hit much of the Progressive ideas such as Social Security, Conservation, and labor restrictions!!!!!!
100 DAYS
“Let me assert my firm belief that the only thing
we have to fear is fear itself”

5. BANKING/MONEY REFORMS
Emergency Banking Relief Act
Gave the President power to regulate banking transactions and foreign exchange; open safe banks
Goal was to make people want to use banks again b/c they felt they were safe again!
FDR used radio to persuade people
Radio speech became known as FIRESIDE CHATS
Glass-Steagal Banking Reform Act
Created the FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)
Insured deposits up to $5000
Again—makes people feel banks are safe!
See chart on page 776
Gold Reserves/Gold Standard
All gold holdings by Americans had to be turned in
Took America off the Gold standard
Buying up the gold would create inflation and relieve debtors

6. JOB CREATION Major Works Programs Harry Hopkins
One out of every four workers was unemployed during the Depression (25% unemployment)
FDR believed in “PUMP PRIMING” or spending federal taxpayers money to get the economy going!!!!!
Major Works Programs
Civilian Conservation Corp (CCC)
Harry Hopkins
Agricultural Adjustment Act (AAA)
Civil Works Administration (CWA)
Works Progress Administration (WPA)

7. FDR’S OPPONENTS “Social Justice” “Share our Wealth” GOVERNOR HUEY LONG
DR. FRANCIS TOWNSEND
FATHER CHARLES
COUGHLIN

8. THE NEW DEAL & WOMEN Frances Perkins Mary McLeod Bethune
Eleanor Roosevelt
First Labor Sec.

9. “Sick Chicken” case THE NEW DEAL & INDUSTRY/LABOR
National Recovery Administration (NRA)
Designed to assist industry, labor, and the unemployed
“Sick Chicken” case
Supreme Court case that ended the NRA
Officially Schechter vs. US
Public Works Administration (PWA)
Intended for both industrial recovery and unemployment relief
Wagner Act of 1935
Created the National Labor Relations Board
Granted again the right of labor to organize and collective bargain

10. JOHN L. LEWIS & THE CIO Lewis head of the United Mine Workers
Formed the Committee for Industrial Organization (CIO)
Would focus on the needs of “unskilled” workers
Used the “sit-down” strike often
Would eventually join with AFL to become AFL-CIO

11. AGRICULTURAL ADJUSTMENT ACT (AAA)
FARMERS & THE NEW DEAL
AGRICULTURAL ADJUSTMENT ACT (AAA)
Paid farmers NOT to farm and even destroyed crops and livestock to bring prices up!!!!
Eventually declared UNCONSTITUTIONAL by the Supreme Court
Eventually became more focused on CONSERVATION practices

12. THE DUST BOWL
Caused by major drought during the Great Depression years
Stretched from Colorado to Missouri
Okies and Arkies —hurt badly by Dust Bowl; move to where work is, especially California
Grapes of Wrath —written by John Steinbeck— displayed the plight of Dust Bowl period

13. Indian Reorganization Act
THE NEW DEAL & INDIANS
Indian Reorganization Act
Passed in 1934
Encouraged tribes to establish local self-government
Attempt to preserve their Native crafts and traditions
Opposite of Dawe’s Severalty Act

14. FEDERAL SECURITIES ACT Securities and Exchange Commission (SEC)
THE NEW DEAL & BUSINESS
FEDERAL SECURITIES ACT
Ensured that stock brokers had to give real prices and values on stocks and bonds
Securities and Exchange Commission (SEC)
Created to be watchdog of stock market

15. THE NEW DEAL & THE PEOPLE
Tennessee Valley Authority (TVA)
Goal is to help provide electricity to rural America
Federal Housing Administration (FHA)
Goal was to stimulate the building industry
Provided small loans for improvements and completion of old houses
Very successful program!

16. THE NEW DEAL & THE PEOPLE
Social Security Act of 1935
Meant to help individuals in old age, disabled, blind, etc.

17. American Liberty League
THE ELECTION OF 1936
FDR
AL LANDON
American Liberty League
Group of wealthy conservatives organized to fight “socialism” in the New Deal

18. THE NEW DEAL & THE COURTS
FDR felt that the Supreme Court was a roadblock to his programs
SC had declared 7 of the New Deal programs “unconstitutional”
THE FIX???
Roosevelt came up with the “Court Packing Plan” to “fix” the Supreme Court
Would allow FDR to add a new justice (pro-New Deal for sure) for every member over 70 who would not retire
Congress and the American public totally disagreed with this program!
BUT, the SC did become more open to FDR’s programs than before!

19. By 1938, the New Deal had lost its momentum
Keynsian Economics
What brings the US out
of the Depression?
Advocated by John Maynard Keynes
Stimulate the economy through deficit spending (more money than you have!)
The economy took a nosedive in again called the “Roosevelt Recession”
By 1938, the New Deal had lost its momentum