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Lesson 3 New Deal and Second New Deal Unit 3 the Period Between the Wars
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Effects of the Depression millions of unemployed people millions of unemployed people malnutrition in children malnutrition in children fewer marriages fewer marriages
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More Effects Women and African Americans Women and African Americans –often lost their jobs to white men –Heavily discriminated –Scottsboro Case the justice system ignored the civil rights of African Americans
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Failing Banks Federal Deposit Insurance Corporation (FDIC) insures bank deposits Federal Deposit Insurance Corporation (FDIC) insures bank deposits
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Unsafe Stock Market Securities and Exchange Commission (SEC) regulates stock market Securities and Exchange Commission (SEC) regulates stock market
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Desperate Plight of Farmers Government pays farm subsidies Government pays farm subsidies Tennessee Valley Authority (TVA) builds dams in the Tennessee River Valley to control floods and create electricity Tennessee Valley Authority (TVA) builds dams in the Tennessee River Valley to control floods and create electricity
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Problems in Industry National Recovery Administration (NRA) develops codes for industries to set minimum wages for workers and minimum prices for goods National Recovery Administration (NRA) develops codes for industries to set minimum wages for workers and minimum prices for goods
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Joblessness Civil Works Administration (CWA) provides jobs on public-works projects Civil Works Administration (CWA) provides jobs on public-works projects Public Works Administration (PWA) creates jobs in construction Public Works Administration (PWA) creates jobs in construction Civilian Conservation Corps (CCC) provides jobs for more than 2 million young men Civilian Conservation Corps (CCC) provides jobs for more than 2 million young men Federal Emergency Relief Act (FERA) grants federal funds to state and local agencies to help the unemployed Federal Emergency Relief Act (FERA) grants federal funds to state and local agencies to help the unemployed
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Opposition to the New Deal The right thinks the New Deal makes the government too powerful The right thinks the New Deal makes the government too powerful –Told business how to operate, spending money and increasing national debt Former President Hoover thought it took away individual freedom Former President Hoover thought it took away individual freedom
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Opposition to the New Deal Left doesn’t think it goes far enough Left doesn’t think it goes far enough Former Populists thought more should be done Former Populists thought more should be done –Francis Townsend (a doctor from CA) wanted gov’t to give everyone over 60 $200/month –Huey Long challenged Roosevelt over the radio
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Questions How did the New Deal make sure that people’s money was safe when investing? How did the New Deal make sure that people’s money was safe when investing? What part of the New Deal helped most Americans get jobs? What part of the New Deal helped most Americans get jobs? Do you think the New Deal was on target? Why/Why not? Do you think the New Deal was on target? Why/Why not?
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Second New Deal 11.6.2. Understand the explanations of the principal causes of the Great Depression and the steps taken by the Federal Reserve, Congress, and Presidents Herbert Hoover and Franklin Delano Roosevelt to combat the economic crisis. 11.65. Trace the advances and retreats of organized labor, from the creation of the American Federation of Labor and the Congress of Industrial Organizations to current issues of a postindustrial, multinational economy, including the United Farm Workers in California.
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Terms Second New Deal Second New Deal –Spring 1935 –WPA –By 1943 8 million employees –650,000 mi of highways –Water Projects in the West
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Economy John Maynard Keynes John Maynard Keynes –Deficit spending –Pump priming Welfare State Welfare State –Social Security Act Flawed
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Workers Rights Wagner Act Wagner Act –Collective bargaining Fair Labor Standards Act 1938 Fair Labor Standards Act 1938 Minimum wage $0.25/hour Minimum wage $0.25/hour AFL AFL –Skilled CIO – Congress of Industrial Organizations CIO – Congress of Industrial Organizations Unskilled wokers Unskilled wokers –Sit down strike
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Challenges to New Deal Supreme Court Opposes New deal Supreme Court Opposes New deal –Schechter Poultry v. United States FDR “Court Packing FDR “Court Packing Feb. 5, 1937 Feb. 5, 1937 –Wanted to add 6 to 9 Change in Court Change in Court –Upheld Wagner Act
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Results Republican gains Republican gains 1935 – 1936 Economy improved 1935 – 1936 Economy improved –10% unemployment –FDR reduced spending –Federal Reserve increased interest rates –Economy went down again –Unemployment 20% Republicans gained 7 senate seats and 75 House Republicans gained 7 senate seats and 75 House
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Second New Deal 11.6.2. Understand the explanations of the principal causes of the Great Depression and the steps taken by the Federal Reserve, Congress, and Presidents Herbert Hoover and Franklin Delano Roosevelt to combat the economic crisis. 11.65. Trace the advances and retreats of organized labor, from the creation of the American Federation of Labor and the Congress of Industrial Organizations to current issues of a postindustrial, multinational economy, including the United Farm Workers in California.
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Terms Second New Deal Second New Deal –Spring 1935 –WPA –By 1943 8 million employees –650,000 mi of highways –Water Projects in the West
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Economy John Maynard Keynes John Maynard Keynes –Deficit spending –Pump priming Welfare State Welfare State –Social Security Act Flawed
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Workers Rights Wagner Act Wagner Act –Collective bargaining Fair Labor Standards Act 1938 Fair Labor Standards Act 1938 Minimum wage $0.25/hour Minimum wage $0.25/hour AFL AFL –Skilled CIO – Congress of Industrial Organizations CIO – Congress of Industrial Organizations Unskilled wokers Unskilled wokers –Sit down strike
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Challenges to New Deal Supreme Court Opposes New deal Supreme Court Opposes New deal –Schechter Poultry v. United States FDR “Court Packing FDR “Court Packing Feb. 5, 1937 Feb. 5, 1937 –Wanted to add 6 to 9 Change in Court Change in Court –Upheld Wagner Act
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Results Republican gains Republican gains 1935 – 1936 Economy improved 1935 – 1936 Economy improved –10% unemployment –FDR reduced spending –Federal Reserve increased interest rates –Economy went down again –Unemployment 20% Republicans gained 7 senate seats and 75 House Republicans gained 7 senate seats and 75 House
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