1. The Great Depression and The New Deal

2. Herbert Hoover: President 1928

3. BLACK Tuesday October 29, 1929 STOCK PRICES PLUNGED
STOCK MARKET CRASHED- start of the great depression
Buying on Margin- borrowing money from a broker to buy a stock
Bull Market 1920s vs Bear Market 1930s

4. BANKING CRISIS Banks loaned money to stock brokers
Stock Market Crashed- People could not pay brokers from buying on Margin, Brokers could not pay banks, Banks collapsed, peoples savings were wiped out.
Bank Runs- People lined up to withdraw their money, 3,800 banks failed , 1/5 of the nations banks failed

5. Overproduction and Underconsumption
Overproduction- making too many goods
Assembly line
Underconsumption- people not buying as much
Farming industry hit hard
Wealth Gap
Wealthiest 5% received 1/3 of the money

6. Government worsens Great Depression
Federal Reserve System- Central Bank of the US, controls the money supply
Discount Rate: Rate of interest banks can borrow money from the federal reserve
Fed increases Discount Rate (Interest Rates) decreases the Money Supply---- business fail---- unemployment increases
Hawley Smoot Tariff Act- law raising taxes on imported goods
Tariff war--- halted trade--- worsening the great depression

7. CAUSES OF THE GREAT DEPRESSION
Bank failures
Overproduction
Underconsumption
Stock Market Collapse
Tariffs
B—O—U—S—T

8. Bonus Army
WWI Veterans requested early retirement payment and marched on Washington
President Hoover ordered the National guard to regain control, loosing support from the veterans
VIDEO

9. Ideology- beliefs and values
RADICAL
CONSERATIVE
LIBERAL
Extreme Change
Leave it Alone
Minor Changes
- Encouraged by the working class to rebel against greed capitalists
EX: Communism, Socialism
Complete government intervention
- Tradition
Belief in the business cycle, a recovery will follow a recession and/or depression
No Government Intervention
-Expansion of Liberty
-Public Works Projects – government funded projects to provide jobs
-Social welfare programs to provide those in need
- Limited government intervention

10. Hoover’s Response No Government intervention Relied on Optimism
Hoovervilles- shantytowns that homeless people built out of cardboard and tarpaper
Relied on Optimism
RFC- Reconstruction Finance Corporation
Trickle Down Theory

11. FRANKLIN DELANORE ROOSEVELT
President elected in 1932
NEW DEAL- program of relief, recovery, and reform
First Hundred Days- Congress passed a record number of bills implementing the New Deal

12. Human Impact
25% unemployed- few could earn a living wage (wage high enough to provide an acceptable standard of living)
Farmers lost their land- property values depleting
Foreclosure- legal process of a lender (bank) taking over a property

13. Human Impact Unemployment led to psychological problems
Marriage rate down
Birth rates down
Divorce Rates down (too expensive)
Suicide rate up
Teenagers left home
Eviction- legal process where landlords remove tenets, Eviction rates rose
Malnutrition- psychological condition from lack of adequate diet

14. Human Impact Soup Kitchens Breadlines
Sprang up around the country, 82 in NYC

16. DUST BOWL
Dust Bowl- area of the Great Plains that suffered from a drought, wind erosion, and poor farming
Black Blizzards- dust storms
Desertification- land becoming desert like
Depopulation- loss of residents from an area
Grapes of Wrath- novel by John Steinbeck about a family leaving the great plains during the dustbowl
Okies- people who followed Route 66 toward California, 300,000 left the Plains

17. Great Flood
1936: Great Flood- Devastating flood in New England that resulted form a series of record- breaking storms in March 1936

18. Americans survival
Americans sold anything they cold for money, cut corners financially, and did whatever they could to avoid receiving public relief
Public Assistance- aid in the form of money, goods, or services that government provides to those in need

19. NEW DEAL and it LEGACY The First New Deal
Fireside Chat with 60 Million radio listeners
Emergency Banking Act- Closed all banks
FDIC (Federal Deposit Insurance Corporation) $5000
Securities and Exchange Commission- Stock Market Reform

20. NIRA
National Industrial Recovery Act (NIRA)- Centerpice of New Deal, goal: increase production, boost wages and prices. Aimed at Businesses, labor unions, and the Unemployed
Businesses
Labor Unions
Unemployed
National Recovery Act (NRA)
Required standardized products, minimum prices and announce price increases
NIRA guaranteed unions collective bargaining and minimum wages and maximum hours
NIRA allotted 3.3 billion dollars for public works projects
Public Works Administration (PWA)- oversaw construction jobs

21. NEW DEAL ACTS AAA (Agricultural Adjustment Act)
Aid farmers by reducing crop production and raising prices, also helped farmers pay their mortgage
Parity: Price that gives farmer purchasing power
TVA (Tennessee Valley Authority)
Built series of dams in the Tennessee River Valley to create jobs, controlled floods, stopped erosion and provided hydroelectric power to 7 Southern States

22. NEW DEAL ACTS
Home Owners Loan Corporation- provided loans for mortgages
FHA(Federal Housing Administration)
Boosted banking by insuring mortgage loans to 80% of the homes value
CCC (Civilian Conservation Corps)
Employed young men planting trees and working on conservation projects
FERA (Federal Emergency Relief Administration)
Sent money to the state governments to distribute money to the needy

23. Responses to the New Deal
Right Winged Response- Conservative critics of the New Deal, thought it went TOO FAR
Left Wing Responses- Liberal Critics who believed FDR needed to go further
Demagogues- Huey Long “Every Man a King”

24. The Second New Deal
Electricity and Jobs % of farmers had electricity, new deal created power plants, power lines, and 90% had electricity by the end of the decade
WPA (Works Progress Administration)- Work relief program which put 3 million Americans to work.
Bridges, parks, public buildings, artists for murals, guidebooks and folk music

25. Supreme Court Attacks New Deal
Wagner Act (National Labor Relations Act)- protected workers right to organize into unions, It continued the NIRA policies after it was considered unconstitutional

26. Social Security Act
Created a social insurance program that provides two main types of benefits:
Retirement
disability

27. FDR: Packing the Supreme Court
FDR attempted to add more justices to the supreme court due to their inability to keep up with the work-load (age), when obviously he just wanted liberal justices to back the New Deal

28. New Deal: Good and bad for whom?
Workers
Women
African American
American Indians
Mexican Deal
Good Deal
Mixed Deal
Disappointing Deal
Better Deal
Tough Deal
Unions stronger
CIO- Congress of Industrial Organization- union established to organize workers by industry rather than occupation
FDR, put many women in his administration thanks to Eleanor
The Economy Act of no Husband and wife working in fed gov. Women exclusion from unions
CCC and WPA helped African Americans survive, some New Deal agencies practiced racism and segregation. Eleanor took a stance on racism
Indians were living in poverty.
John Collier, Commissioner of foreign affairs stopped assimilation and Indian cultural awareness and healthcare improved. Indian Rec. Act.
Mexicans faced poverty and unemployemnt. The AAA cut down on farming which forced them to move into cities. They could not enroll in gov. programs (illegal) deported?
Best to Worst: Workers, American Indians, Women, African Americans, and Mexican Americans

29. New Deal Coalition
A political partnership formed during the 1930s among various social and political groups in support of the New Deal, democratic party, and FDR

30. New Deal Legacy
Economic Security: New Deal promised people the right to a job, adequate wages, a decent home, medical care, and a good education
Welfare State- A social system in which government takes responsibility for the economic well-being of its citizens
The Federal Government is now actively involved in the economy
Deficit Spending: Spending more than the government receives in revenues. He Financed the deficit by borrowing money
Lasting Programs: Social Security, TVA, SEC, FDIC, etc…