2. GREAT DEPRESSION AND THE NEW DEAL 1929 - 1942 LIFE IN THE 1930’S

3. What was the Great Depression?  The worst economic crisis of the century  Over 13 million people unemployed  That’s 35 % unemployed/50% for African- Americans/ Latinos  A crisis in the banking industry  “Dust bowl” as a result of drought and poor farming practices  Farmers lost crops  Many people lost their homes  A social and psychological crisis

4. Three areas of problems Consumer spending: Credit Banking industry: Reckless practices Farming Sector: Dust Bowl overproduction

5. Business cycle

6. Great Depression Business cycle

7. Business cycle since the Great Depression: healthier

8. Why is the Great Depression important today? 1)Changed the relationship of Americans to their government permanently We now look to government to solve economic problems We now look to government to solve economic problems

9. Why is the Great Depression important today? 2)Permanently enlarged the federal government Liberals loved thisLiberals loved this Conservatives hated itConservatives hated it

10. What caused the Great Depression?  Unequal distribution of wealth  Stock market crash of 1929  Industrial overproduction – farmers and businesses were producing more goods than could be bought and used.  Easy credit  Banks had made unwise loans  Banks lent too much money  People could not pay back their loans

11. Unequal Distribution of Wealth  No middle class  However, because of the availability of credit, people are “buying” goods

12. Buying on credit creates a false demand for products  Buying on credit created false demand   What happens to demand when people have reached their credit limit?   Remember that banks have made some unwise loans as well.

13. Industrial Overproduction = too many products and not enough buyers  WAGES NOT KEEPING UP WITH INFLATION  SUPPLY GREATER THAN DEMAND

14. Chain reaction Fewer goods are sold. Demand drops. In order to stay in business companies cut wages People lose their confidence & start saving their money Demand drops even further. Companies are forced to cut costs by laying people off Even more people Lose their confidence And spend less money People lose their jobs. The Spiral Of Depression

15. Stock Market Crash  Many stocks purchased in huge numbers  Drove up the value of company stocks artificially  Stock prices fell  Huge sums of money lost Thursday, October 24, 1929

16. Black Tuesday

17. Complete Analyzing Political Cartoons: The Americans PAGE 487

18. “Migrant Mother”: The Face of the Great Depression

19. The Results  Bank Failures

20. The Results: Unemployment

21. Unemployment

22. Dustbowl A traveler noticed a nice new hat by the side of the road, and he stopped to pick it up. Under the hat was a man, buried up to his neck in the dust! As he dug the poor fellow out, the traveler asked if he wanted a ride into town. "No, I'll get there myself," the man replied, "I'm on a horse." (Excerpt from THE DUST BOWL by Tricia Andryszewski, p. 33.)

23. Poor farming practices + drought = Dustbowl

24. Dust clouds + high winds = terrifying experience

25. What areas were affected by the Dust Bowl?

26. OKIES: Refugees from the Dust Bowl. They usually went to California

27. The Results: HARD TIMES  Loss of homes  “Hoovervilles” Here were all these people living in old rusted-out car bodies.... One family... [was] living in a piano box. This wasn't just a little section, this was maybe 10 feet wide and 10 feet long. People living in whatever they could junk together...."

28. The Results: Soup kitchens

29. The results: People on “ relief ”

30. The results: Social Unrest: Fear of a Socialist Revolution

31. The Results: Social unrest and labor activity

32.  Depression

33. Depression

34. Depression

35. Did everyone suffer during the Great Depression?

36. Two Presidents respond to the Depression: One fails and the other changes the role of government forever! President Hoover 1928-1932 President Franklin Roosevelt 1932 - 1945

37. Hoover fails to respond effectively to the Depression  “rugged individualism”  Thought government relief would be bad for people’s character  Voluntary associations  Charity  Failed to recognize how big the economic crisis was

38. FDR and the New Deal increase the size of the federal government and bring it into our lives

39. Worldwide Depression leads to social and political unrest

40. And the rise of dictators in Europe and Japan

41. But many in the US are burying their heads in the sand….. AMERICA FIRST!

42. America First movement..

43. 1933 – FDR TAKES OVER – AND JUST IN TIME

44. The New Yorker Magazine’s view of the inauguration!

45. Election of 1932

46. FDR: The nation’s only 4 term President. Served through the Great Depression and WW II

47. Families on Relief

49. “The only thing we have to fear …..is fear itself” “Our greatest primary task is to put people to work” Franklin Delano Roosevelt

50. FDR: “This generation of Americans has a rendezvous with destiny”

51. FDR inspires confidence FDR inspires confidence

52. A New President and a New Deal  I NEVER FORGET THAT I LIVE IN A HOUSE OWNED BY ALL THE AMERICAN PEOPLE AND I HAVE BEEN GIVEN THEIR TRUST.” FDR

53. Reversing the Spiral of Depression Government Spending $ Alphabet Agencies More Jobs More Spending Demand for goods increases More goods have to be produced More people with Jobs = more pay $ More Spending Demand for goods increases More goods have to be produced More Jobs More Pay = More Taxes Cycle of Prosperity! Democrats called this Process ‘Pump Priming’

54. FDR’s New Deal: Relief, recovery, reform  Relief for the needy  Jobs provided  Banking, Business and government reformed

55. FDR gets to work: The First 100 days  Emergency Banking Act  Bank “holidays”: banks are ordered closed on certain days  Glass – Steagall Act creates FDIC: Federal Deposit Insurance

56. The Alphabet Agencies

57. FDR’s New Deal: Government grows and takes over parts of the economy  AAA – Agricultural Adjustment Act  CCC – Civilian Conservation Corps  NRA – National Recovery Act  WPA – Works Project Administration  PWA – Public Works Administration  SSA – Social Security Administration  REA – Rural Electrification Administration  TVA – Tennessee Valley Authority

58. Fireside Chat: May 7, 1933

59. AAA: paid farmers not to farm, production, $$$

60. CCC: employed young men to work in national parks, build roads, hiking trails, etc

61. WPA – Works Project Administration

62. The WPA put artists to work

63. WPA: created millions of jobs for unskilled and skilled workers

64. Dorothea Lange documents the Depression for the FSA

65. Her most famous photo: Migrant Mother (and how a photo –and a photographer- can lie)

66. Dorothea Lange documents Japanese internment 1942

67. Homework: A New Deal for the Arts  http://www.archives.gov/exhibit_hall/new _deal_for_the_arts/index.html http://www.archives.gov/exhibit_hall/new _deal_for_the_arts/index.html http://www.archives.gov/exhibit_hall/new _deal_for_the_arts/index.html

68. Problems and Criticisms of the New Deal  Some programs were wasteful  Charges of socialism  At first, the U.S. Supreme Court struck down some of FDR’s New Deal programs  FDR responds to this threat to his New Deal with the court- packing scheme

69. Court – packing scheme: FDR declares war on the Supreme Court