1. The Great Depression

2. The Great Crash ■An initial stock market crash on Oct 24, 1929 (Black Thursday) led to a catastrophic drop in stocks on Oct 29 (Black Tuesday) –Panicked investors sold stocks, causing stock prices to plummet –Banks lent less money, factories produced less, workers were fired or paid less → consumers had less money to spend → factories & businesses closed

5. This downward spiral continued for 4 years; By 1932 unemployment was at 25% Unemployment, 1929-1942

6. Employment Agencies & Relief-Check Lines

8. These 4 potatoes are Christmas Dinner

9. Where’s daddy?

10. “Hoovervilles” & “Hoover Flags”

11. Hoover Struggles to Fight the Depression

12. Hoover and Voluntarism ■Hoover’s initial response was to reassure Americans that prosperity would return ■Hoover rejected bold gov’t action & called for volunteerism among charities, local gov’t, & business Reconstruction Finance Corps ■As the depression worsened, Hoover called for gov’t projects like the Reconstruction Finance Corps (RFC) which loaned money to failing businesses “Rugged individualism”

13. The Hoover administration initiated job-creation programs, like building the Hoover Dam

14. Hoover and Voluntarism ■In 1932, President Hoover suffered two final blows: Bonus Army –When 22,000 war veterans marched to the capital to demand their WW1 bonus checks early, Hoover ordered this Bonus Army to be forcibly removed –The steady rise of bank failures led to a complete collapse of the U.S. banking system

15. Bonus Army Douglas MacArthur Dwight Eisenhower

16. Bank Failures, 1929-1933

17. Fighting the Depression ■The inability of Republicans to resolve the economic depression opened the door for a Democratic takeover in politics ■Once in power, Democrats succeeded in relieving some suffering, restored hope, & created an unprecedented level of gov’t intervention in the process

18. Franklin Roosevelt & the First New Deal (1933-1935)

19. The Election of 1932 ■The depression made Hoover the victim, but Franklin Roosevelt emerged as the “savior”: –In the 1932 election, FDR was able to unite the rural & urban factions of the Democratic party & won a landslide victory –FDR appealed to Protestants & Catholics, farmers & workers, native-born & immigrants

20. The Hundred Days ■When FDR took over in 1933, the U.S. economy was on the brink of collapse: –Unemployment was at 25% –38 states had total bank failure ■FDR requested from Congress broad executive power to begin his “New Deal” program of economic relief, recovery & reform FDR asked for “broad executive power that would be given to me if we were in fact invaded by a foreign foe.”

21. the only thing we have to fear is fear itself; “Let me assert my firm belief that the only thing we have to fear is fear itself; nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance.”

22. New Deal ■Relief: for people cut off ■Recovery: for business and economy ■Reform: of American economics and institutions

23. The Hundred Days ■In his 1 st hundred days, FDR began his 1 st New Deal (1934-35) ■FDR’s 1 st order of business was to restore confidence in banking: –Declared a 4-day bank holiday: closed or funded weak banks & opened new gov’t-aided banks –Glass-Steagall Act –Glass-Steagall Act created the FDIC which guaranteed all bank deposits over $5,000 Banks were regulated (not nationalized); the economic system was reformed (not drastically changed) Emergency Banking Act of 1933 Now, the FDIC insures deposits up to $100,000

24. “Capitalism was saved in eight days”

25. Fireside Chats

26. The Hundred Days ■The greatest success of the First New Deal was its ability to offer relief to unemployed citizens via the Reconstruction Finance Corps –Modest relief checks were doled to 15% of Americans –Federal Emergency Relief Act (FERA) –Federal Emergency Relief Act (FERA) pumped $500 million into state welfare programs

27. The Hundred Days ■Relief efforts of the First New Deal created more “alphabet agencies” –Civilian Conservation Corps (CCC) –Civilian Conservation Corps (CCC) employed urban men –Civilian Works Admin (CWA) –Civilian Works Admin (CWA) hired 4 million men & women –Agricultural Adjustment Admin (AAA) –Agricultural Adjustment Admin (AAA) subsidized farmers

28. CCC workers paved roads, planted trees, built bridges

29. CWA Creating drainage system for an airfield Dredging a lake

30. AAA

31. Percentage of American Families Accepting Government Relief in 1933

32. National Recovery Administration The NRA ended up being too bureaucratic; business cooperation gave way to self-interest & greed

33. SEC (Securities and Exchange Commission) ■The U.S. Securities and Exchange Commission is a federal agency which holds primary responsibility for enforcing the federal securities laws and regulating the securities industry, the nation's stock and options exchanges, and other electronic securities markets in the United States.federal agencysecuritiesUnited States

34. The Tennessee Valley Authority Critics claimed the TVA was too socialistic; Competing electric companies attacked the TVA for selling cheaper electricity & eliminating competition

36. The Dust Bowl (1931-1939) worsened the effects of the Depression Areas Affected by the Dust Bowl drought “Okies” & “Arkies”

37. Franklin Roosevelt & the Second New Deal (1935-1938)

38. Father Charles Coughlin

39. Dr. Francis Townsend

40. Challenges to FDR Share the Wealth ■Louisiana Senator Huey Long proposed his Share the Wealth plan to: –Take from the rich—a 100% tax on all personal income over $1 million –Give to the poor—give every American $2,500 per year

41. Huey Long How many men ever went to a barbecue & would let one man take off the table what's intended for 9/10th of the people to eat? The only way you'll ever be able to feed the balance of the people is to make that man come back & bring back some of that grub that he ain't got no business with! Now, how are you going to feed the balance of the people? What's Morgan & Baruch & Rockefeller & Mellon going to do with all that grub? They can't eat it, they can't wear the clothes, they can't live in the houses. But when they've got everything on God's loving earth that they can eat & they can wear & they can live in, & all that their children can live in & wear & eat, & all of their children's children can use, then we've got to call Mr. Morgan & Mr. Mellon an Mr. Rockefeller back and say: “Come back here, put that stuff back on this table here that you took away from here that you don't need. Leave something else for the American people to consume.” “The Kingfish” Huey Long threatened to run as a 3 rd Party candidate but was assassinated in 1935

42. WPA Public Work Project WPA cared less about what got done as long as work was done: built hospitals, schools, airport fields… but also moved leaf piles & dug ditches

43. WPA Initiatives

44. WPA Health Initiatives

47. WPA Arts Project

48. WPA Community Murals Construction of the Dam by William Gropper

49. WPA Music Projects

50. WPA Theater Projects

51. WPA Writers Projects

52. WPA Travel Guides

53. WPA Oral History Projects: Interviews with former slaves

54. ■Liberal critics argued that SS did not do enough ■Conservative critics argued that SS violated individualism & self-reliance ■Social Security created America’s 1 st welfare program to help individuals

55. Success of the New Deal Programs?

56. Conclusions ■The New Deal was made up of 3 parts: relief, recovery, & reform –New Deal was most successful in providing immediate relief to ease economic suffering –The New Deal did not bring economic recovery or an end to the depression –The New Deal brought major reforms that changed America For the 1 st time, the gov’t used Keynesian economics (deficit spending & gov’t spending to stimulate the economy) The gov’t assumed responsibility for the health of the nation's economy & citizens The New Deal signaled the beginning of the welfare state