1. LESSON 3.4 = THE GREAT DEPRESSION AND THE NEW DEAL

2.  What did you learn yesterday in regard to labor unrest in the US?  https://www.youtube.co m/watch?v=GCQfMWAi kyU https://www.youtube.co m/watch?v=GCQfMWAi kyU  3  2  1

4.  ALTHOUGH THE 1920’S WERE PROSPEROUS, SPECULATION IN THE STOCK MARKET, RISKY LENDING POLICIES, OVERPRODUCTION, AND UNEVEN INCOME DISTRIBUTION EVENTUALLY UNDERMINED THE ECONOMY AND LED TO THE GREAT DEPRESSION.

5.  HERBERT HOOVER, THE REPUBLICAN NOMINEE, RAN AGAINST DEMOCRAT ALFRED E SMITH, A CATHOLIC  MANY PROTESTANTS FEARED THE CATHOLIC CHURCH WOULD RULE THE WHITE HOUSE  HOOVER AND THE REPUBLICANS TOOK THE CREDIT FOR PROSPERITY OF THE 20’S, AND WON EASILY

6.  AFTER THE ELECTION, THE STOCK PRICES CONTINUED TO INCREASE  THE LATE 1920’S SAW A LONG BULL MARKET, OR PERIOD OF RISING STOCK PRICES  MANY INVESTORS BEGAN BUYING STOCK ON MARGIN = SMALL DOWN PAYMENT AND TOOK OUT LOAN TO PAY REST  IF PRICES FELL, THE STOCKBROKER ISSUED A MARGIN CALL = PAY BACK THE LOAN  POINT IS, A LOT OF PEOPLE INVESTED IN STOCK MARKET THAT SHOULD NOT HAVE!

7.  BEFORE THE LATE 1920’S, INVESTORS WHO PAID FOR STOCK WERE INVESTING IN LONG TERM FUTURE  BY LATE 20’S, MANY BUYERS HOPED TO MAKE A QUICK PROFIT AND PRACTICED “SPECULATION”.

8.  BY 1929, THE STOCK MARKET WAS RUNNING OUT OF NEW CONSUMERS  PROFESSIONAL INVESTORS BEGAN SELLING OFF THEIR HOLDINGS  PRICES DECREASED. AND DECREASED. AND DECREASED  OCT. 29, 1929 = BLACK TUESDAY = STOCK DIVED  SERIOUSLY UNDERMINED THE ECONOMY!

10.  MANY BANKS HAD LENT MONEY TO STOCK SPECULATORS, AND INVESTED DEPOSITORS MONEY IN STOCK MARKET  MANY COULD NOT REPAY LOANS, AND BANK LOST MONEY ON THEIR INVESTMENTS  BANKS HAD TO CUT BACK ON LOANS = HELPED SEND ECONOMY INTO RECESSION

11.  MANY BANKS WERE FORCED TO CLOSE, AND PEOPLE LOST ALL THEIR SAVINGS  BANK RUNS CAUSED MANY MORE BANKS TO COLLAPSE

13.  UNEVEN DISTRIBUTION OF WEALTH  CREDIT DEBT  HIGH TARIFFS = FEW AMERICAN PRODUCTS SOLD OVERSEAS (Hawley Smoot Tarrif)  MISTAKES BY THE FEDERAL RESERVE:  (1) LOW INTEREST RATES ENCOURAGED BANKS TO MAKE RISKY LOANS  (2)LOW INTEREST RATES MADE BUSINESS LEADERS THNK THE ECONOMY WAS STILL EXPANDING = OVERPRODUCTION = LAYOFFS!!

15. Boom to Bust Complete question sheet 3 2 1

16.  What is a Bull Market?  What factors contributed to Herbert Hoover’s election in 1928?  What effect did speculation have on the stock market?  What were some of the causes of the stock market collapse in 1929?  In what two ways did the stock market collapse severly weaken the nations banking system?  What is a bank run?  What were some of the causes of the Great Depression?  What effect did the Hawley-Smoot Tariff have on the Great Depression?  What mistakes by the Federal Reserve contributed to the Great Depression?

17. Part 2

18.  List as many causes of the Great Depression that you can.

20.  PRESIDENT HOOVER TRIED TO FIX THE ECONOMY BY PROVIDING LOANS TO BANKS AND CORPORATIONS AND BY STARTING PUBLIC WORKS PROJECTS. LATER, HE RELUCTANTLY SUPPORTED DIRECT AID TO IMPOVERISHED FAMILIES. BY THE EARLY 1930’S, MORE AMERICANS WERE DEMANDING THE GOVERNMENT’S HELP.

22.  PUBLICLY, HOOVER REASSURED THE PUBLIC THAT THE ECONOMY WAS ON THE RIGHT TRACK  PRIVATELY, HE WAS WORRIED.  HE BROUGHT TOGETHER BUSINESS, AS WELL AS GOV’T AND LABOR LEADERS  INDUSTRY LEADERS PROMISED NOT TO CUT FACTORIES AND WAGES. BY 1931 ALL HAD BROKEN PROMISE

23.  HOOVER INCREASED PUBLIC WORKS, OR GOV’T FINANCED BUILDING PROJECTS TO CREATE JOBS  IT WASN’T ENOUGH, FOR WORK TO MAKE A DENT, HE NEEDED TO MASSIVELY INCREASE GOV’T SPENDING  HE WOULD EITHER HAVE TO RAISE TAXES OR RUN A DEFICIT = NEITHER OPTION DESIRABLE

24.  HOOVER SET UP THE NATIONAL CREDIT CORPORATION AND THE RECONSTRUCTION FINANCE CORPORATION =  PROVIDE MONEY FOR BANKS AND BUSINESSES  NEITHER MET THE NATION’S NEEDS

25.  In 140 characters or less, summarize Hoover’s strategy in combating the Great Depression.

26.  HOOVER OPPOSED RELIEF = MONEY GIVEN DIRECTLY TO FAMILIES = RUGGED INDIVIDUALISM  BY THE SPRING OF 1932, LOCAL AND STATE GOVERNMENTS WERE RUNNING OUT OF MONEY  CONGRESS PASSED AN ACT TO PROVIDE LOANS TO STATES FOR DIRECT RELIEF  HOOVER SIGNED IT, BUT THE PROGRAM COULD NOT REVERSE THE ECONOMY’S DOWNWARD SPIRAL  BY 1931 HOVER’S NAME IS ASSOCIATED WITH FAILURE = HOOVERVILLES AND HOOVER FLAGS

27.  Using an anaology, explain to your partner how Hoover’s lack of popularity led to the term “hoovervilles’.

29.  AFTER THE STOCK MARKET CRASH OF 1929, PEOPLE WERE PREPARED TO ACCEPT BAD TIMES  BY 1931, PEOPLE WANTED MORE GOVERNMENT HELP = PEOPLE BEGAN TO REVOLT  FARMS WERE HEAVILY MORTGAGED TO PAY FOR SUPPLIES  MANY LOST FARMS WHEN CREDITORS FORECLOSED  OTHER FARMERS BEGAN DESTROYING CROPS TO RAISE PRICES  OTHERS BLOCKED FOOD DELIVERIES AND DUMPED MILK IN DITCHES

30.  CONGRESS HAD SCHEDULED BONUS PAYMENTS OF $1,000 TO WW1 VETERANS FOR 1945.  IN 1931, A CONGRESSMAN INTRODUCED A BILL TO DISTRIBUTE MONEY EARLY  A GROUP OF VETERANS – DUBBED THE BONUS ARMY – MARCHED TO THE CAPTITAL TO LOBBY  THE SENATE VOTED DOWN THE BILL = SOME MARCHERS REFUSED TO LEAVE = CAMPED OUT IN “HOOVERVILLES”  WHEN HOOVER ORDERED BUILDINGS TO BE CLEARED, POLICE KILLED TWO MARCHERS  THE ARMY IS CALLED IN, AND GENERAL DOUGLAS FORCED ALL MARCHERS OUT, BURNED CAMPS  NEWSREEL IMAGES OF EVENT FURTHER DAMAGED HOOVERS REPUTATION  IN THE END, HOOVER FAILED TO END THE GREAT DEPRESSION, BUT EXPANDED THE ROLE OF GOV’T MORE THAN ANY PREVIOUS  https://www.youtube.com/watch?v=9H7NhI 2pn5M https://www.youtube.com/watch?v=9H7NhI 2pn5M

32.  Today I learned………………….  What are public works?  What is direct relief?  What two major strategies did president Hoover use to promote economic recovery?  What did WWI veterans do to try to get their service bonuses early?  How did Hoover respond to the Bonus March?  How did the Bonus March affect Hoovers presidency?

33. Part 3

35.  What made Hoover so unpopular and ineffective in dealing with the Great Depression?

36.  FRANKLIN DELANO ROOSEVELT WAS ELECTED PRESIDENT IN 1932, FOLLOWING HIS PROMISE OF A “NEW DEAL” FOR AMERICANS. IN HIS FIRST 100 DAYS IN OFFICE, HE LET LOOSE A FLOOD OF LEGISLATION DESIGNED TO RESCUE BANKS, INDUSTRY, AND AGRICULTURE AND PROVIDE JOBS FOR THE UNEMPLOYED.

37.  ROOSEVELT WAS A DISTANT COUSIN OF TR  BORN INTO A WEALTHY FAMILY, HE GRADUATED FROM HARVARD AND COLUMBIA LAW SCHOOL.  HIS EARLY POLITICAL CAREER WAS A WILD SUCCESS  AFTER BEING STRICKEN WITH POLIO IN 1921, ELEANOR ROOSEVELT KEPT HIS CAREER ALIVE WHILE HE RECOVERED  BY 1928, FDR WAS ACTIVE IN POLITICS AGAIN = GOVERNOR OF NY = OVERSAW CREATION OF A RELIEF AGENCY  HIS POPULARITY PAVED WAY TO PRESIDENCY, WINNING 1932 ELECTION BY A LANDSLIDE  FDR OFFERED “A NEW DEAL”  GOVERNMENT MUST MEET NEEDS OF PEOPLE  REQUIRED DEFICIT SPENDING  https://www.youtube.com/watch?v=3ccG6PTxh 9I&list=PLzlNIxHFD4Gd6- AGdS_FdGbQJ3fJESqey https://www.youtube.com/watch?v=3ccG6PTxh 9I&list=PLzlNIxHFD4Gd6- AGdS_FdGbQJ3fJESqey

38. 321321

39.  ROOSEVELT BEGAN HIS TERM BY SENDING BILL AFTER BILL TO CONGRESS  DURING THE FIRST 3 MONTHS, CONGRESS PASSED 15 MAJOR ACTS TO ATTACK THE ECONOMIC CRISIS = hundred days

40.  FDR REALIZED HE MUST RESTORE PEOPLE CONFIDENCE IN BANKS  HE DECLARED A NATIONAL BANK HOLIDAY TO PREVENT BANK RUNS, THEN CALLED A SPECIAL SESSION IN CONGRES  HOUSE AND SENATE PASSED THE EMERGENCY BANKING RELIEF ACT = FEDS WOULD LICENSE ONLY HEALTHY BANKS

41.  ON MARCH 12, FDR ADDRESSED THE NATION ON THE RADIO IN THE FIRST OF MANY “FIRESIDE CHATS”  THE NEXT DAY THERE WERE FAR MORE BANK DEPOSITS THAN WITHDRAWALS  FDR PUSHED FOR REGULATION OF BANKS AND STOCK MARKET =  SECURITES ACT OF 1933 = COMPANIES MUST BE TRUTHFUL W/ INVESTORS  GLASS-STEAGALL BANKING ACT = CREATED FDIC = INSURED BANK DEPOSITS TO A SET AMOUNT  HOMEOWNERS LOAN CORPORATION = HELP PEOPLE PAY MORTGAGES  FARM CREDIT ADMINISTRATION TO HELP FARMERS REFINANCE MORTGAGES

42.  GOVERNMENT PAID FARMERS NOT TO RAISE CERTAIN LIVESTOCK AND CROPS TO RAISE PRICES =  AGRICULTURAL ADJUSTMENT ADMINISTRATION  NATIONAL INDUSTRIAL RECOVERY ACT = SUSPENDED ANTI-TRUST LAWS  THE NATIONAL RECOVERY ADMINISTRATION RAN PROGRAM, EVENTUALLY RULED UNCONSTITUTIONAL

43.  RELIEF PROGRAMS MEANT TO GET MONEY IN THE HANDS OF INDIVIDUALS=  CIVILIAN CONSERVATION CORPS = HIRED MEN TO PLANT TREES, FIIGHT FOREST FIRES, BUILD RESERVOIRS  FEDERAL EMERGENCY RELIEF ADMINISTRATION = PROVIDED FED. MONEY TO STATE AND LOCAL GOV  PUBLIC WORKS ADMINISTRATION = BUILD HIGHWAYS, DAMS, SEWER SYSTEMS, SCHOOLS, BUILDINGS  CIVIL WORKS ADMINISTRATION = PLACED WORKERS DIRECTLY UNDER FEDERAL PAYROLL  NEW DEAL PROGRAMS INSPIRED HOPE AND RESTORED FAITH IN OUR COUNTRY!!!!  DID NOT END DEPRESSION!!!!

46.  IN RESPONSE TO CRITICISMS OF THE NEW DEAL, PRESIDENT ROOSEVELT INTRODUCED SEVERAL MAJOR PIECES OF LEGISLATION IN 1935. THESE LAWS CREATED THE WORKS PROGRESS ADMINISTRATION, THE NATIONAL LABOR RELATIONS BOARD, AND THE SOCIAL SECURITY ADMINISTRATION

47.  BY 1935, THERE WERE MANY CRITICS OF THE NEW DEAL  THE RIGHT OPPOSED FDR’S DEFICIT SPENDING = BORROWING MONEY TO FINANCE PROGRAMS  OTHER CHALLENGES CAME FROM THE LEFT = NOT DOING ENOUGH  HUEY LONG, FATHER COUGHLIN, AND FRANCIS TOWNSEND THREATENED FDR’S RE-ELECTION IN 1936  HUEY LONG = SHARE THE WEALTH  FATHER COUGHLIN = NATIONALIZE BANKING SYTEM  DR. TOWNSEND = PENSIONS FOR ELDERLY

48.  FDR ASKED CONGRESS FOR FUNDS TO PROVIDE WORK RELIEF AND JOBS  FDR CALLED UPON CONGRESS TO PASS NEW PROGRAMS TO KEEP VOTER SUPPORT

49.  KNOWING THE LABOR VOTE WOULD BE IMPORTANT TO THE 1936 ELECTION, CONGRESS PASSED THE WAGNER ACT=  GAURANTEED WORKERS RIGHT TO FORM UNIONS AND BARGAIN COLLECTIVELY  ALSO CALLED FOR BINDING ARBITRATION = ARGUMENTS FROM BOTH SIDES HEARD BY 3 RD PARTY TO DECIDE  THE WAGNER ACT STIMULATED MORE UNION ACTIVITY = UNITED MINE WORKERS  THE COMMITTEE FOR INDUSTRIAL ORGANIZATIONS ORGANIZED THE AUTO AND STEEL WORKERS

50.  UNION ORGANIZERS STARTED USING SIT-DOWN STRIKES = STOPPED WORK INSIDE FACTORY AND REFUSED TO LEAVE  THE UNITED AUTO WORKERS ORGANIZED MANY SUCCESSFUL SITDOWN STRIKES

51.  LAW MEANT TO PROVIDE MONEY AND SECURITY FOR OLDER AMERICANS AND UNEMPLOYED WORKERS  IN THE SOCIAL SECURITY SYSTEM, WORKERS PAY PREMIUMS, TAX PAID TO FEDERAL GOV  GOVERNMENT THEN DISTRIBUTES MONEY  RETIRED WORKERS OVER AGE OF 65 CAN COLLECT MONTHLY RETIREMENT BENEFIT  UNEMPLOYED COULD RECEIVE TEMPORARY INCOME  POOR MOTHERS W/ CHILDREN COULD RECEIVE WELFARE PAYMENTS  MIXED LEGACY = DIDN’T HELP FARMERS AND DOMESTIC WORKERS  HELPED ESTABLISH IDEA THAT THE GOVERNMENT SHOULD TAKE CARE OF THOSE THAT DON’T WORK

52.  President Roosevelt won a landslide reelection victory in 1936. Early in his second term, however, his court packing plan and a new recession hurt him politically. The Fair Labor Standards Act, the last significant peace of New Deal legislation, provided new protection for workers.

54.  Court packing plan:  What was the coalition?  What is the legacy of the New Deal?  https://www.youtube.com/watch?v=6bMq9Ek 6jnA https://www.youtube.com/watch?v=6bMq9Ek 6jnA

55.  Bust  3  2  1

56.  Summarize in your own words what you learned about the New Deal in 5-7 sentences.  What ailment did FDR suffer from?  What was FDR’s plan called to combat the Great Depression?  How would you define the New Deal….what did the New Deal call for and attempt to do?  What actions did FDR take during the Hundred Days?  How did FDR restore peoples confidence in Banks?  How did the government regulate the stock market?  How did the AAA affect farm prices?  What does deficit spending mean?  What groups belonged to the New Deal coalition?  What is the historical significance of Roosevelt’s “court packing” plan?  What caused a recession early in Roosevelt’s second term?  How did the New Deal expand federal power over the economy?  What were some of Roosevelt’s achievements of his second term?  What were Roosevelt’s defeats during his second term?  What effect did the New Deal have on America during the Great Depression?