1. A Survey of USA: ----- Great Depression and New Deal Prof. Niangen Huang

2. Great Depression and New Deal ► During and immediately after the First World War, America enjoyed a period of prosperity and fast development in economy. The ten years between 1919 and 1929, usually called the "roaring Twenties" or the "Jazz Age", were a time of carefree prosperity, isolation from the world's problems, bewildering social change and a feverish pursuit of pleasure.

3. Great Depression and New Deal ► The Twenties brought a rush of new inventions and manufacturing techniques which changed the way people lived. ► People moved away from the countryside in such numbers that by 1925 half the population of America lived in cities and suburbs. ► Women won the right to vote and many started to earn their own money. ► Cars became commonplace and people began to move about among all regions of the country. ► Radio, movies, an abundance of standardized national products and national advertizing all helped to turn America into a greedily consuming society.

4. Great Depression and New Deal ► At such a prosperous time Herbert Hoover was elected President in 1928. In his 1929 Inaugural Address, Hoover declared "in no nation are the fruits of accomplishment more secure. ” ► Hoover ’ s statement reflected the mood of optimism in the country.

5. Great Depression and New Deal ► Warning signals were beginning to appear to some observant people. ► Agrarian depression, unstable trading conditions in Europe, and a vast overextension of credit in the country were soon to have a devastating impact on American life.

6. Great Depression and New Deal ► The collapse of the Stock Market in October, 1929 brought an abrupt end to the prosperity. ► Farm prices and industrial production fell. ► Unemployment rose precipitously. ► Thousands of banks and small businesses failed.

7. Great Depression and New Deal ► President Hoover sought to attack the depression with programs" calling for voluntary co-operation. ► He opposed federal relief for individuals in distress. He thought “ the sole function of Government is to bring about a condition of affairs favorable to the beneficial development of private enterprise. ” ► His policy did not prove to be adequate.

8. Great Depression and New Deal ► From 1929 to 1932, there was a steady decline in all major areas of the American economy. No wonder that the American nation repudiated him at the presidential election of 1932. ► Franklin Roosevelt, was easily elected President.

9. Franklin Roosevelt ’ s New Deal ► After he was elected President in 1932, he at once showed that he was determined to deal with the great economic depression. ► The total sums of measures that he took to end the depression are called the New Deal.

10. Franklin Roosevelt ’ s New Deal ► to raise commodity prices by limiting production, ► devaluing the dollar, ► maintaining high tariffs on foreign goods, ► to carry through a modest inflation: by providing money at low rates of interest to farmers and to industry,

11. Franklin Roosevelt ’ s New Deal ► For farmers, the Agricultural Adjustment Act was passed in 1932, which enabled the government, amongst other things, to pay grants to farmers to induce them to reduce the amount of crops grown and this came to cover such commodities as cotton, wheat, corn, pigs, rice, tobacco, milk, sugar and other goods.

12. Franklin Roosevelt ’ s New Deal ► In industry, Roosevelt, by the National Recovery Act of 1933, was given power to control working hours and working conditions, to fix minimum wages.  Through the National Recovery Act a vast scheme of public works was begun and four million men were immediately set to work on projects of clearance and construction. This was later expanded to take in housing and slum clearance, reforestation, flood control and soil erosion work.

13. Franklin Roosevelt ’ s New Deal ► At the same time a number of more fundamental reforms were enacted.  The banking, system was adjusted and the Securities and Exchange Commission was established to regulate the stock market. Under the Tennessee Valley Authority and extensive flood control, electric power, and general development program was put into operation.

14. Franklin Roosevelt ’ s New Deal ► In 1935, the Social Security Act was signed by Roosevelt, which provided a system of pensions for the retired, unemployment insurance, and care for the dependent and disabled.  By this Act the principle of government responsibility for the aged and jobless was permanently institutionalized.

15. Franklin Roosevelt ’ s New Deal ► The basic ideas behind the New Deal:  that the federal government has the prime responsibility for the welfare of the people and must not be limited by narrow concepts of states rights;  that bold experimentation is the way to find solutions to new social problems;  that active presidential leadership of Congress and the people is vital in a worm of growing complexity.