1. The Great Depression & The New Deal

2. Stock Market Crash of 1929 1928 - 29: Surge in Stock Market speculation, $87 billion in 1929 October 29, 1929: approximately $50 billion lost

3. U.S. Depression Linked to a Global Depression Europe struggled with wartime debt U.S. and Europe could not buy American goods 1930: 1,352 banks failed & $850 million deposits lost 1931: 2,300 banks failed & $1.7 billion lost

4. Hoover’s Response, 1929 - 1932 Relied on VOLUNTARY aid associations The “Bitter Bread of Charity”: Aid humiliated and disciplined the poor

5. Hoovervilles Seattle, 1932 “Pipe City” in Oakland, 1932

6. What Was Life Like During the Great Depression? 1932: 250,000 nomadic families Women’s unemployment rate was over 20% 2 million women housecleaners did not earn minimum wage

7. Effects of the Great Depression on Family Life Birth Control easier to obtain Divorce rate soared High School enrollment increased

8. Farm Life ¼ of all farm families on public or private aid Mortgage foreclosures of farms across the U.S.

9. World War I Bonus Marchers, 1932

10. What Happened? 10,000 WWI veterans demanded early bonuses in Washington D.C. 2,000 stayed in Hoovervilles in D.C. July 28, 1932: General Douglas MacArthur burned their shelters Riot ruined Hoover’s career

11. Mexican Repatriation 1/2 million Mexicans returned to Mexico in the 1930s, some voluntary and many by force Deportations involved “round ups” of laborers 70,000 Mexicans left Los Angeles, CA in 1931

12. Election of 1932 FDR: 57.4% of votes vs. Hoover: 39.7% of votes

13. FDR’s Inaugural Address

14. The First New Deal: March 1933 – 34 March 1933: 14 million people out of work FDR hired the “BRAIN TRUST”: Professors, lawyers, politicians, & former Progressive Era reformers who developed New Deal policies

15. Addressing the Bank Crisis March 5, 1933: National Banking Holiday, banks closed for 4 days Emergency Banking Act: Only healthy banks could re-open (FDIC) Federal Deposit Insurance Corporation created

16. (CCC) Civilian Conservation Corps Employed jobless youth in reforestation & environmental programs Paid $30 - 35 per month 1933: 500,000 workers 1942: 3 million workers

17. (PWA) Public Works Association Large scale public works projects: building libraries, bridges, dams Built 500 airports and 250,000 rest stop bathrooms in CA, OR, and WA Helped redefine the meaning of public assistance

18. (AAA) Agricultural Adjustment Act Paid farmers to stop producing wheat, corn, cotton, pigs, and dairy Wanted to raise the price of goods by reducing the supply in the market Problem: AAA did not help farm workers or migrant workers & it only helped large land holders

19. (TVA) Tennessee Valley Authority Advanced the economic development of the entire Tennessee River Valley Created jobs for architects, engineers, construction workers, scientists, and clerks Brought electricity and running water to one of the poorest areas in the nation

22. Results of the First New Deal FDR began to strengthen the role and authority of the federal government Federal government programs changed the prior idea of “charity aid” Did not end the Great Depression

23. Challenges from the Left and Right: 1934-1935 Father Coughlin: Detroit Catholic priest with an audience of millions Fan base primarily of the lower middle class

24. Challenger # 2: Dr. Francis Townsend Elderly CA physician Proposed the government pay $200 per month to retired people over 60 years old Retirees would have had to spend the money in 30 days

25. Challenger # 3: Louisiana’s Huey Long

26. Huey Long’s “Share the Wealth” Plan 5,000 dollars to every American family Limit personal fortunes to 1 million dollars Old age pensions of $30 a month to persons over sixty

27. The 2 nd New Deal: 1934 – 1936 The Works Progress Association 8 million construction workers, writers, artists, photographers, and musicians employed between 1935 – 1942 Employed 10,000 jobless writers Oral Histories of immigrants and former slaves

28. Who did the 2 nd New Deal Target? Directly addressed the needs of workers, the elderly, and the poor The federal government became the source of stability and security Fair Labor Standards Act of 1938 sets minimum wage of 40 cents per hour Brain Trust placed higher taxes on corporations and the wealthy out of the fear of the influence of Coughlin, Long, and Townsend

29. Social Security Act of 1935 The major accomplishment of the New Deal Established worker’s pensions, unemployment insurance, survivor’s benefits for industrial accidents, aid for the disabled, aid for single mothers Ignored farmers, domestic workers, and self-employed Embraced by people during the 1930s