Chapter 24The Great Depression and the New Deal

The Depression BeginsWhy?

Superficial prosperity in the 20sFarmers & textile workers sufferedWealth distributionBusiness / employee profits

Consumer purchasing powerUnemploymentRampant speculation

Flawed financial systemsGlobal economic issues

World War IFederal Reserve Board

Tightened credit (opposite needed)

Hoover and the Great DepressionAggressive

responseConsulted business

leadersEncouraged public

worksFederal agencies

National Credit Corporation

Emergency Committee for Employment

Tax cutsUltimately failed

Economic DeclineDecline continuedIndustry

Cutbacks, closures, wage reductions, layoffs

Revolution?DespairAlteration of family

life

Global DepressionGerman financial

systemBritain → gold standard“Fall guy”

“Hoovervilles”Public works projectsReconstruction

Financing CorporationHome Financing

CorporationFederal Home Loan

Bank Act of 1932Federal Housing

Administration

The Bonus ArmyWorld War I veteransVeterans’ bonuses (loans)

House / Senate

“Hoovervilles”

Douglas MacArthur

Election of 1932Republicans

Unpopular HooverDemocrats

Franklin RooseveltNew York governorProgressive

Roosevelt’s campaignAmbiguous“New deal”

“Only thing to fear”“Fireside chats”

Roosevelt’s AdvisorsBipartisan

advisorsHarold Ickes:

InteriorHenry Wallace:

AgricultureFrancis Perkins:

LaborInformal “brain

trust”Eleanor Roosevelt

Editorialist SpeechmakerCivil rights?

The Banking CrisisMost pressing

concernTrust?“4-day holiday”Broad Executive

powersBanksStock Market

FDICEconomy Act21st Amendment

Relief MeasuresFederal Emergency

Relief Administration

Civil Works Administration

Public Works Administration

Agricultural Adjustment ActControl production

“Parity prices” – paid not to produce

Beneficial to large farmers

Later, unconstitutional

Industrial RecoveryNational Industrial

Recovery AdministrationRaise prices,

control production, and increase employment

National Recovery Administration

Labor organizationBeneficial to large

businessLater,

unconstitutional

Civilian Conservation CorpsConservation

Reforestation

Road / park construction

Flood control

Tennessee Valley AuthorityTheodore

Roosevelt?George Norris (R-

Neb)Flood-control

projectsElectricityLand reclamationDams

Critics of the New DealInitial alleviation of

concernsDepression loomedSocialism?Liberty LeagueCommunismFather Charles E.

CoughlinAnti-Semitic

Huey Long“Share the Wealth”

program

Work Relief and Social Security

WPAUnemployment

reliefSocially useful

projectsConstructionThe “arts”6,000 schools, 2,500

hospitals, 13,000 playgrounds

Social Security Act (1935)Old-Age, survivor,

unemployment insurance

The New Deal for LaborNational Labor Relations Act

Outlawed blacklisting“Right to organize”

American Federation of LaborOmission of farm laborers and

unskilled workersCommittee of Industrial

OrganizationJohn L. LewisAuto & steel workers

Sit-down strikes United Auto Workers

Expelled from AFLCongress of Industrial

Organization

America’s Minorities in the 1930s

Lynching“Scottsboro boys”Emigration to north

Northern ghettosSegregated New Deal

No anti-lynchingNo anti-poll tax”“Black cabinet”Eleanor RooseveltAsiansNative Americans

Indian Reorganization Act

The Election of 1936Republicans

Alf LandonCheap, efficient “new

deal” policies

DemocratsRoosevelt

Democratic SouthOrganized laborFarmersUrban votersAfrican Americans

Completing the New DealMiddle class

Homeowner’s Loan Association

Federal Housing Administration

Fair Labor Standards Act