a survey of usa: ----- great depression and new deal prof. niangen huang

A Survey of USA: A Survey of USA: ----- Great Depression ----- Great Depression

and New Dealand New Deal

Prof. Niangen HuangProf. Niangen Huang

Great Depression and New DealGreat Depression and New Deal

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


► The Twenties brought a rush of new inventions and manufacturing The Twenties brought a rush of new inventions and manufacturing techniques which changed the way people lived.techniques which changed the way people lived.

► People moved away from the countryside in such numbers that by People moved away from the countryside in such numbers that by 1925 half the population of America lived in cities and suburbs. 1925 half the population of America lived in cities and suburbs.

► Women won the right to vote and many started to earn their own mWomen won the right to vote and many started to earn their own money. oney.

► Cars became commonplace and people began to move about amoCars became commonplace and people began to move about among all regions of the country.ng all regions of the country.

► Radio, movies, an abundance of standardized national products anRadio, movies, an abundance of standardized national products and national advertizing all helped to turn America into a greedily cond national advertizing all helped to turn America into a greedily consuming society. suming society.


►At such a prosperous time Herbert At such a prosperous time Herbert Hoover was elected President in 1928. Hoover was elected President in 1928. In his 1929 Inaugural Address, Hoover In his 1929 Inaugural Address, Hoover declared "in no nation are the fruits of declared "in no nation are the fruits of accomplishment more secure.” accomplishment more secure.”

►Hoover’s statement reflected the Hoover’s statement reflected the mood of optimism in the country. mood of optimism in the country.


►Warning signals were beginning to Warning signals were beginning to appear to some observant people. appear to some observant people.

►Agrarian depression, unstable trading Agrarian depression, unstable trading conditions in Europe, and a vast conditions in Europe, and a vast overextension of credit in the country overextension of credit in the country were soon to have a devastating were soon to have a devastating impact on American life. impact on American life.


►The collapse of the Stock Market in The collapse of the Stock Market in October, 1929 brought an abrupt end October, 1929 brought an abrupt end to the prosperity. to the prosperity.

►Farm prices and industrial production Farm prices and industrial production fell. fell.

►Unemployment rose precipitously. Unemployment rose precipitously. ►Thousands of banks and small Thousands of banks and small

businesses failed. businesses failed.


►President Hoover sought to attack the President Hoover sought to attack the depression with programs" calling for depression with programs" calling for voluntary co-operation. voluntary co-operation.

►He opposed federal relief for individuals in He opposed federal relief for individuals in distress. He thought “the sole function of distress. He thought “the sole function of Government is to bring about a condition Government is to bring about a condition of affairs favorable to the beneficial of affairs favorable to the beneficial development of private enterprise.”development of private enterprise.”

► His policy did not prove to be adequate. His policy did not prove to be adequate.


► From 1929 to 1932, there was a From 1929 to 1932, there was a steady decline in all major areas of the steady decline in all major areas of the American economy. No wonder that American economy. No wonder that the American nation repudiated him at the American nation repudiated him at the presidential election of 1932. the presidential election of 1932.

►Franklin Roosevelt, was easily elected Franklin Roosevelt, was easily elected President.President.

Franklin RooseveltFranklin Roosevelt’s New Deal’s New Deal

► After he was elected President in After he was elected President in 1932, he at once showed that he was 1932, he at once showed that he was determined to deal with the great determined to deal with the great economic depression. economic depression.

►The total sums of measures that he The total sums of measures that he took to end the depression are called took to end the depression are called the New Deal. the New Deal.


►to raise commodity prices by limiting to raise commodity prices by limiting production, production,

►devaluing the dollar, devaluing the dollar, ►maintaining high tariffs on foreign maintaining high tariffs on foreign

goods, goods, ►to carry through a modest inflation: by to carry through a modest inflation: by

providing money at low rates of providing money at low rates of interest to farmers and to industry, interest to farmers and to industry,


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


► In industry, Roosevelt, by the National In industry, Roosevelt, by the National Recovery Act of 1933, was given power to Recovery Act of 1933, was given power to control working hours and working control working hours and working conditions, to fix minimum wages. conditions, to fix minimum wages. Through the National Recovery Act a vast Through the National Recovery Act a vast

scheme of public works was begun and four scheme of public works was begun and four million men were immediately set to work on million men were immediately set to work on projects of clearance and construction. This was projects of clearance and construction. This was later expanded to take in housing and slum later expanded to take in housing and slum clearance, reforestation, flood control and soil clearance, reforestation, flood control and soil erosion work.erosion work.


► At the same time a number of more At the same time a number of more fundamental reforms were enacted. fundamental reforms were enacted. The banking, system was adjusted and The banking, system was adjusted and

the Securities and Exchange Commission the Securities and Exchange Commission was established to regulate the stock was established to regulate the stock market. Under the Tennessee Valley market. Under the Tennessee Valley Authority and extensive flood control, Authority and extensive flood control, electric power, and general development electric power, and general development program was put into operation. program was put into operation.


► In 1935, the Social Security Act was In 1935, the Social Security Act was signed by Roosevelt, which provided a signed by Roosevelt, which provided a system of pensions for the retired, system of pensions for the retired, unemployment insurance, and care for unemployment insurance, and care for the dependent and disabled. the dependent and disabled. By this Act the principle of government By this Act the principle of government

responsibility for the aged and jobless was responsibility for the aged and jobless was permanently institutionalized.permanently institutionalized.


►The basic ideas behind the New Deal:The basic ideas behind the New Deal: that the federal government has the prime that the federal government has the prime

responsibility for the welfare of the people responsibility for the welfare of the people and must not be limited by narrow and must not be limited by narrow concepts of states rights;concepts of states rights;

that bold experimentation is the way to that bold experimentation is the way to find solutions to new social problems;find solutions to new social problems;

that active presidential leadership of that active presidential leadership of Congress and the people is vital in a worm Congress and the people is vital in a worm of growing complexity. of growing complexity.

a survey of usa: ----- great depression and new deal prof. niangen huang

Documents