1. The Great Depression and the New Deal
AP Chapter 24

3. Florence Leona Christi
"I did not ask her name or her history. She told me her age, that she was 32.
She said that they had been living on frozen vegetables from the surrounding fields and birds that the children killed.
Dorthea Lange--Photographer

5. I. The Great Crash October 29,1929 “Black Tuesday” Within 3 weeks…
Over time…

6. A. Causes of the Crash 1. Stock Market Speculation
2. Mistakes by the Federal Reserve Board
3. An Ill-Advised Tariff
4. A Maldistribution of Wealth

7. 1. Stock Market Speculation
Money poured into the stock market
Many investors bought on 10% “margin”
Investor put in only 10% and borrowed from banks, brokers
Rampant speculation and risky ventures
Confidence in future earnings fell and banks, brokers demanded loan repayment

8. 2. Mistakes by the Federal Reserve Board
, Federal Reserve curtailed the amount of money in circulation and raised interest rates
Credit became more difficult for the public to obtain
Policy was disastrous when the crash occurred
U.S. needed easier credit once Depression began

9. 3. An Ill-Advised Tariff Hawley-Smoot Tariff (1930)
Raised tariffs on agricultural and manufactured goods
Other countries retaliate by raising tariffs on American goods

10. 4. A Maldistribution of Wealth
Huge gap between wealthy and poor
Wealthiest families’ incomes rose the most
Coolidge Administration mistakes:
Lowered taxes on the wealthy
Slowed consumer consumption

11. Income Distribution Before the Great Depression

12. B. Effects of the Crash
1. Gross National Product…
2. 25%..

13. Unemployment,

14. The Jobless

20. C. Hoover’s Response
Unable to effectively communicate with the common man…
Tries the “trickle down” method…
Debt moratorium…

21. 1. Hoover’s Program Associationalism Glass-Steagall Act (1932)
Reconstruction Finance Corporation (RFC)
Hoover uncomfortable with deficit spending, Especially spending that directly gave money to the poor
Livestock feed over food for farm families
Bank bail out over salaries for teachers and city workers

22. D. Mounting Discontent and Protest
1. Bonus Expeditionary Force (Bonus Army)
20,000 staged a march on Washington, D.C.
About 2000 make “camp”
House agrees, Senate refuses
Douglas MacArthur and George Patton called in
Make shift city burned and veterans dispersed

23. “Bonus Army”

24. D. Mounting Discontent and Protest
2. “Hooverville’s” *Make shift cities, like in Central Park, where jobless people lived. *Suicide rates skyrocket

25. “Hoovervilles”

26. The Homeless

28. E. The Dust Bowl Tons of topsoil blown off barren fields
--storm clouds for hundreds of miles.
CO, KS, TX, OK; eventually entire country was affected.
1932, 14 dust storms
By 1934, 100 million acres of farmland had lost all or most of the topsoil to the winds.

29. Black Sunday April 14, 1935 April 1935 -- weeks of dust storms,
Cloud appeared on the horizon
Winds were clocked at 60 mph. Then it hit.

36. The Hobos Migratory Homeless Poor/penniless Indigent workers
Sometimes supporting others
Unlike tramps, vagabonds who did not want to work

39. The Rail Yard Hobos

40. The Migrants The “Arkies” and the “Okies”

46. II. The New Deal Takes Shape

47. The Emergence of Roosevelt 1933 - 1945
Franklin Roosevelt
born to wealth and privilege
1921--crippled by polio
1928--elected governor of New York
talented politician
1932--defeats Hoover with farmer- worker-immigrant-Catholic coalition

48. Election of 1932

49. “We have nothing to fear but fear itself“
Roosevelt
Bulldog determination to succeed
Talent for surrounding himself with capable people and getting most out of them (the Brain Trust)
Instill hope and courage in the people
“We have nothing to fear but fear itself“

50. F.D.R. & Eleanor

51. The “New Deal” Three “R”s… Brain Trust… “Hundred Days”… Bank Holiday…
Repeal of Prohibition…
Alphabet Soup Agencies…

52. A. The Hundred Days
Several significant reforms in the first three months of his initial term.
Banking system saved from collapse
Fifteen major laws provide relief
New Deal aims to reform and restore, not nationalize, the economy

53. Emergency Banking Relief Act, which permitted sound banks to reopen under direction of the Treasury Dept.
First 'fireside chat,' Roosevelt told Americans it was safer to keep money in a reopened bank than “under the mattress

54. PWA
Public Works Administration

55. TVA
Tennessee Valley Authority

56. CCC
Civilian Conservation Corps

57. AAA
Agricultural Adjustment Act

58. WPA

59. SEC
Securities and Exchange Commission

60. NRA
National Recovery Administration

61. Indian Reorganization Act

62. National Labor Relations (Wagner) Act

63. Social Security Administration

64. Rise of Organized Labor
1932--National Recovery Act spurs union organizers
Congress of Industrial Organization (CIO) formed by John L. Lewis
CIO unionizes steel, auto industries
1940--CIO membership hits 5 million, 28% of labor force unionized

65. Challenges to FDR Francis Townsend
Elderly - over 60 $200/month but had to be spent in 30 days – as a way to stimulate the economy
More than ½ the national income to less than 10% of the population – scares, frustrates economists
Signs of discontent everywhere in 1935
Upton Sinclair almost won the governor of California
Violent strikes in textile industry in 20 states

66. Opponents of the New Deal
Father Charles Coughlin
Dr. Francis Townsend

67. Huey Long Share the Wealth
Seize fortunes of more than 5 million dollars and a 100% tax in individuals earning more than 1million dollars
Take from the rich and redistribute the wealth to make every man a “king”:
Every American guaranteed a home worth $5000 thousand and yearly income of $2500
Threatened to run for presidential candidate –
Assassinated in Louisiana late 1935

68. Father Coughlin Stood strong against capitalism and its foundations,
Warning against the dangers of communism regularly.
“For the good of the people,”
against all things government." 
sympathetic to fascist Nazi, Italian regimes
National Union of Social Justice
FDR administration eventually shut down his broad casts

69. End of the New Deal 1936--New Deal peaks with Roosevelt’s reelection
Congress resists programs after 1936
Least assistance for women, ethnics groups and laborers

70. Pros and Cons Did not end Depression
Failed as formula for economic recovery
Businessmen and financiers did not support New Deal– caused federal government increase
Rural Electrification Social Security
Insurance of bank accounts, protection for labor unions
Federal controls over the economy gave others sense of security

71. The Election of 1936 FDR’s campaign
attacks the rich
promises further reforms
defeats Republican Alf Landon
Democrats win both houses of Congress
FDR coalition: South, cities, labor, ethnic groups, African Americans, poor

72. Keynesian Economics John Maynard Keynes Deficit spending…
“priming the pump”

73. Court Packing Plan

74. The Supreme Court Fight
Supreme Court blocks several of FDR’s first-term programs
1937--FDR seeks right to "pack" Court
Congressional protest forces retreat
FDR’s opponents emboldened

75. The New Deal in Decline 1936--cutbacks for relief agencies
1937--severe slump hits economy
Roosevelt blamed, resorts to huge government spending
1938--Republican party revives

76. Fair Labor Standards Act

77. 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

78. Consider Women… African Americans… Native Americans…
Mexican Americans…