GREAT DEPRESSIONHow did ordinary Americans

endure the hardships of the Great Depression?

Economic Distress Unemployment

From 3% unemployment in 1929 to 25% in 1933 1 in every 7 businesses failed (heavy industries) Cascading unemployment

People out of work=no spending=businesses closing=more people out of work

Farmers Overproduction and underconsumption of farming goods Falling property values and increased foreclosures

1920, 38 of 1000 farms foreclosed in 1932 278 per 1000 farms closed

Mississippi tenant farmers income fell annually from $239 in 1929 to $119 in 1933

American families stressed Loss of self respect Marriage and birth rates declined

Struggling Society Loss of Homes

Evictions increased, which led to homelessness Hooverville’s sprang up in major cities Men left home and wandered the streets (hobos) and

teenage boys wandered the rail lines (Hoover tourists)

Increased hunger and starvation 1 in 5 children suffered from Malnutrition, inadequate

diet. Illness increased in poor families 66%, and medical

care could not be afforded Soup kitchens and Breadlines became a common

site in many cities. New York had 82 soup kitchens providing the needy

with 85,000 meals a day

Droughts and Floods The Dust Bowl occurred from drought and blowing dust storms

called, Black Blizzards. Black Blizzards affected the Great Plains in 1931. 100 million acres of farmlands affected

Desertification, process in which land becomes increasing dry and desert like Drought in addition to poor farming practices after WWI (over

production), depleted the soil of nutrients and when the wind picked up, it blew the plants away

1935, government established the Soil Conservation Service to help farmers by promote better farming practices and planting trees

Depopulation 25% living in the Dust Bowl region left for nearby cities looking for work Okies, from the fictional book “The Grapes of Wrath,” were farmers who

packed up and headed for California on Rt 66 for its promise of farm work The Great Flood of 1936

Northeast Flood, hit Pennsylvania the hardest. 84 died and 82,000 buildings destroyed Shortly after President Roosevelt signed a flood-control legislation into

action.

Coping with Hard Times 80,000 college students dropped out Bartering took place to survive Before FDR’s New Deal people looked to any source for help.

In New York charitable contributions from the wealthy increased from 4.5 million in 1930 to 21 million in 1932

Gangster Al Capone established Chicago’s first Soup Kitchen in 1930 Local and state governments offered public assistance, money,

goods, and services, to those out of work. But their funds were drained quickly

THE NEW DEALHow did the expansion of

Government during the New Deal affect the Nation?

The First New Deal FDR takes office 1933 and implements his

program of relief, recovery and reform, THE NEW DEAL

FDR attempted to calm people’s fears by giving a series of radio addresses called “fireside chats.” Explanation of his plans and asking for support Smooth calming voice and upbeat tone People soon trusted FDR and backed the New Deal

Restructuring the Financial Sector March 6th, 1933- all banks were temporary

closed known as a “bank holiday” Emergency Banking Act passed-federal

government has more power to supervise banks

Sunday, March 12th 1933, one day before the banks were to reopen, FDR’s stated in his fireside chat “I can assure you, it is safer to keep your money in a reopened bank, rather than under the mattress.” March 13th, money started to flow into banks

Banking Act of 1933- created the Federal Deposit Insurance Corporation (FDIC) which insured deposits up to $5,000.

Securities and Exchange Commission (SEC) created in 1934- companies required to publish important facts about their businesses and regulated the stock market

New Deal: helping Business and the Economy

NIRA- National Industrial Recovery Act of 1933-increase production, boost wages and prices. Aimed to help business, labor unions and the unemployed.

NIRA created the NRA- National Recovery Act. The NRA helped business by creating codes of fair pricing, standard goods, and fair competition (moving away from laissez fair)

NIRA granted workers the right to organize and bargain collectively- establishing minimum wage and maximum hours

NIRA created the PWA- Public Works Administration to oversee public works projects. 3.3 billion dollars was spent to create jobs and stimulate the economy, but it worked very slowly.

NEW DEAL: helping Farmers

AAA- Agricultural Adjustment Act- tried to aid farmers by reducing crop production and increasing crop prices. Goal- to reach parity- give

farmers purchasing power they had previous to WWI

Farmers planted fewer crops in hopes prices would increase

AAA also gave farmers loans to pay mortgages and stay on their land

Economic Development TVA- Tennessee Valley

Authority- built dams, bridges, roads, planted trees, cut trails to National Forests

Home Owners Loan Corporation- helped people make mortgage payments

FHA- Federal Housing Administration- gave boost to banking and construction industries by insuring mortgages up to 80% of a homes value

Economic Development CCC- Civilian Conservation

Corp- provided young men, jobs, working on conservation projects like planting trees and creating national parks.

FERA- Federal Emergency Relief Administration- sent funds to state governments, which then distributed funds to the needy. (1st time in history the federal government provided direct relief to the needy)

Political Challenges Critics of the New Deal-

ideological differences Right Wing- conservative-

thought FDR had gone too far Wealthy industrialists, bankers,

and religious leaders American Liberty League- called

the New deal socialists and unconstitutional

Left Wing-liberal-thought FDR had not done enough for the needy Dr. Francis Townsend, Norman

Thomas, and Upton Sinclair thought the New Deal should do more

Political Challenges Demagogues-political leader to appeals

to people’s emotions and prejudices- attacked the New Deal and were Extremes on the political spectrum. Charles Coughlin- Roman Catholic Priest-

used the radio to capture his audience and felt FDR did not do enough stating FDR had “out Hoovered Hooverville”

Huey Long- Louisiana Senator, launched a Share our Wealth Program, take money from the rich and give it to the poor. “4 % of American People own 85% of the wealth of America”

http://www.youtube.com/watch?v=_7IdgoXzi24

FDR claimed to be moderate- mainstream- in the middle

The Second New Deal Emergency Relief Appropriation Bill- nicknamed “Big

Bill” created new agencies in 1935 REA- Rural Electrification Administration -establishing

electricity to farms (20% in 1935 by WWII 90% had electricity)

WPA- Works Progress Administration- put more than 3 million Americans to work building bridges public buildings and parks WPA- arts projects- murals on public buildings

Supreme Court Attacks the New Deal

In 1935, the Supreme Court struck down the NIRA- stating the act violated the constitutional separation of powers given by the president, rather than congress the power to issue “codes of fair competition”

In 1936, the Supreme Court struck down the AAA on grounds that “to regulate and control agricultural production, was a matter beyond the powers delegated to the federal government”

Bills for workers Wagner Act- guaranteed workers “the right

to self-organization, to form, join, or assist labor organizations and to collectively bargain”

The National Labor Relations Board (NLRB) was created to supervise union elections and to penalize employers for “unfair labor practices”

1938- Fair Labor Standards Act regulated conditions in the workplace and set a minimum wage of $.25 an hour and maximum 44 hour work week

SOCIAL SECURITY Social Security Act- 1935, retirement benefits to

retired workers after they reach 62 and disability- workers who become too disabled and children who are severely disabled.

Social Security Act also set up an unemployment insurance program for workers who have lost their jobs and are seeking work (usually up to 6 months)

Supreme Court Battle 1936 FDR easily wins a second

term in office FDR feared the Supreme Court

would hold him back 1937- FDR presented Congress

with legislation to redesign the Supreme Court Add a new justice for every justice

over 70 (too old to keep up) His real intention was to pack the

supreme court with liberal justices who favored New Deal programs

Republicans and Democrats were OUTRAGED with FDR’s Court-Packing Plan and his legislation was shot down.

New Deal: Social and Political Impacts

Workers- New Deal helped many workers and labor unions. John L Lewis, head of United Mine Workers

helped form CIO- Congress of Industrial Organization

Women-New Deal helped and hurt women Many more women in political positions (Frances

Perkins- Secretary of Labor, Mary McLeod Bethune- Minority Affairs), but many women left the workforce to free up jobs for men.

African Americans- continued to suffer from oppression FDR failed to support African American by

turning down an anti-lynching bill (to keep Southern votes in congress)

New Deal: Social and Political Impacts

American Indians-better Deal for American Indians John Collier, head of Indian Affairs- hoped to repair past

damage with an “Indian New Deal” Indian Reorganization Act of 1934- Indian communities were

given the right to set up their own tribal communities Mexican Americans- tough Deal for Mexican

Americans Mexican Farmers hurt badly 1/3 of Mexicans returned to Mexico

New Deal Coalition- loyalty of minorities to the democratic party Benefits of the New Deal outweighed the costs 70% of African Americans voted for FDR Minorities trusted FDR for progress

Legacy of the NEW DEAL Right to Economic Security

Social Security Health Insurance for elderly Price supports for farmers Food stamps for the poor

Expansion of the Federal Government Deficit Spending, spending more than

the government receives in revenues Government plays a more direct role in

Americans lives FDIC and the SEC protect consumers