THE GREAT DEPRESSIO

N & The New Deal

Chapter 14/15

The Human Impact of the Great Depression

Millions of people found themselves jobless, homeless, &penniless.

Hungry people lined up at churches & soup kitchens.

Many slept on park benches or in makeshift shelters (“Hoovervilles”)

Conditions

Thousands of men sneaked onto empty railroad cars and road from town to town looking for work.

Psychological impact Suicide rates soared

during the 1930s.

The Human Impact of the Great Depression

Dust Bowl (caused by severe draught) Impact of commercial farming Exodusters or “Okies”– uprooted farmers

and families from the South and Midwest who moved to California. (800,000)

The Human Impact of the Great Depression: Culture

The Golden Age of Radio and Film

Programming 1920s movies & radio –

undermines establishment (gangsters)

1930s movies & radio – good guys win; effort to show struggles of common people; return to traditional values

The Hoover Depression Program

No individual aid from government.Wants private sector to solve

problem.Near the end of his administration he

does begin limited public works programs (Hoover Dam) and lends money to states and financial institutions and agricultural coops.

Cooperation with private sector rather than direct government intervention.

The Bonus Army

WWI veterans marched on Washington– wanted 1945 bonus (pension) early – Congress grants half now, half later.

“Bonus Army” cleared out by U.S. army

Bonus Army Camp Library of Congress

The Election of 1932

1932 election—Franklin D. Roosevelt (Dem.) beats Hoover (FDR uses radio during campaign)

Restoring Hope

His upbeat personality communicated joy and hope- as did his campaign song, “Happy Days Are Here Again.”

He was much more flexible and willing to experiment than Hoover.

“I pledge myself to a new deal for the American people.” - FDR

President Roosevelt in Bismarck N.D. Library of Congress

Roosevelt Responds:New Deal

Two ways to view New Deal: radical or conservative; threat to capitalist system or preservation of system

Does not give in to communism or socialism.

New Deal is not cohesive, efficient, or well organized; no overall blueprint.

Two goals: Relief and reform

The First New Deal(1933-1935)

First 100 daysSaving the Banks

Emergency Banking Act 4 day Bank holiday – stabilizes system

Federal Deposit Insurance Commission FDR’s “fireside chats” assured banks’ safety “The only thing we have to fear is fear itself.”

Abandons the Gold standard to raise prices

Ends ProhibitionSEC (Securities and exchange

commission) effort to regulate stock and bond market

The First New Deal(1933-1935)

Relief for the Unemployed - Government relief (welfare) distributed through states

The First New Deal(1933-1935)

Relief for the Unemployed Work relief – Civilian Conservation Corps Tennessee Valley Authority

The First New Deal(1933-1935)

Planning for Industrial Recovery Public Works Administration

Construct bridges, buildings, tunnels, etc.

National Recovery Administration (NRA) Effort to control wages, forty-hour

workweek, end child labor, etc. Doesn’t work well and is

eventually found unconstitutional by Supreme Court (1935)

The First New Deal(1933-1935)

Planning for Agriculture Agricultural Adjustment Administration

(AAA) Lowers production to raise prices

They attempted to raise commodity prices (and thereby farm incomes) by paying farmers to reduce crops and herds.

Farm income increased and federal farm programs came to dominate the nation’s agricultural economy.

Voices of Protest

Supreme Court rules NRA and AAA unconstitutional

Industrialist (right)Socialists and Communists (Left)Father Charles Coughlin, the “radio

priest”Huey P. Long from Louisiana

“Share our Wealth” program – income redistribution; helped push FDR to Social Security

A Second New Deal (1935)

Work Progress Administration (WPA) Work relief for the jobless Built buildings, airports, schools, etc. Creates jobs for writers, artists, historians, etc.

Social Security Act (SSA) Pension fund for retired people over the age of 65 Unemployment insurance, welfare, etc.

National Labor Relations Act (NLRA) Gives workers the right to strike / join unions

Revenue Act of 1935 (Wealth tax) Raised tax rates on the wealthy and corporations

A New Deal for Women

Redefined the role of a presidential spouse

Served as FDR’s “eyes and ears,” as well as his conscience.

Crisscrossed the nation in support of women’s causes, humanitarian causes, and minority rights. Eleanor Roosevelt

Library of Congress

Second Administration

The Election of 1936 Blacks vote Democrat for 1st time FDR pushes through a federal anti-lynching law FDR appoints some (few) blacks to public office

Problems Court Packing Plan; FDR seen as undermining

system of checks and balances Recession of 1937

A Second New Deal

The Decline of the New Deal

Recession of 1937 John Maynard Keynes – Government can spend

its way to recovery FDR initially ignores this and the economy slumps

New Deal does not end Great DepressionWWII would return the American

economy to full production and full employment by massive government spending.

Foreign affairs begin to consume more of FDR’s time

Legacy of the New Deal

New Deal changes government’s role The power of the national government

greatly enlarges. Emergence of broker state, mediating

among interest groups. The government has the responsibility

to ensure a minimum level of well-being for all Americans.

1928 Herbert Hoover elected president

Significant Events

1929 “Great Crash” of stock market 1930 Smoot-Hawley tariff chokes off world trade 1931 Temporary Emergency Relief Administration 1932 Reconstruction Finance Corporation created

Bonus Army marches on Washington 1933 Roosevelt inaugurated; Hundred Days legislation enacted 1934 SEC created

Huey Long organizes Share Our Wealth Society to redistribute wealth

1935 WPA created 1937 Roosevelt announces his court-packing plan

1939 War in Europe breaks out