mr. hill's great depression and new deal pp
TRANSCRIPT
Great DepressionCauses and Consequences
1929-1939
Black Tuesday
• October 29, 1929: • Stock Market Crash
marked beginning of Great Depression
• Over inflated stock values driven by Buying on Margin
• Causes of Great Depression • tariffs and war debt policies cut worldwide
consumption of USA goods (Hawley-Smoot Tariff)• USA Farming industry having economic problems• Availability of easy credit / • BUYING Stocks ON MARGIN• Unequal distribution of income – more money
reached the rich and less to the poor
Consequences of Great Depression
• Banks and Businesses Collapse
• 11,000 of the USA’s 25,000 banks closed
Stock ticker
Consequences of Great Depression
• Unemployment skyrockets during the G.D.
• Unemployment reached 30%
The Great Depression (1929-1941)
Bread Lines and Soup Kitchens feed millions of jobless hungry
Americans
Question
• What were the four worst years of unemployment during the Great Depression
• See next slide for the answer
Hoovervilles
• Evicted from their homes, many Americans lived in shabbily built houses made of discarded wood and trash.
Herbert Hoover
Seemed to be
UNCARING
Great Depression
Starts in 1929
Attacked the BONUS ARMY
Veterans
RESULT: HOOVER Loses the election of 1932
to FDR
Farm Families hit especially hard during the Depression
• What was the DUST BOWL ?
• Area of the American midwest whose topsoil eroded and caused huge clouds of dust to form
• Farmers from this area often left for California
• “OKIES”
DUST BOWL• WHAT STATES were
a part of the DUST BOWL?
• See page: 680• New Mexico, Texas,
Oklahoma, Kansas, Colorado
• How many states suffered damage?
• 12-13
Dust Bowl (page 680)• How far away was
dust of the Dust Bowl reported to have been carried?
• 500 miles off the East Coast
• How many states were covered by Dust in 1934’s dust storm?
• 19-20
No Food Stamps
There was no WIC program
No Social Security
No Section 8 Housing Projects
No Governmental Assistance
"Brother, Can You Spare a Dime," lyrics by Yip Harburg, music by Jay Gorney (1931) They used to tell me I was building a dream, and so I followed the mob, When there was earth to plow, or guns to bear, I was always there right on the job. They used to tell me I was building a dream, with peace and glory ahead, Why should I be standing in line, just waiting for bread? Once I built a railroad, I made it run, made it race against time. Once I built a railroad; now it's done. Brother, can you spare a dime? Once I built a tower, up to the sun, brick, and rivet, and lime; Once I built a tower, now it's done. Brother, can you spare a dime?
Once in khaki suits, gee we looked swell, Full of that Yankee Doodly Dum, Half a million boots went slogging through Hell, And I was the kid with the drum!
Say, don't you remember, they called me Al; it was Al all the time. Why don't you remember, I'm your pal? Buddy, can you spare a dime?
Once in khaki suits, gee we looked swell, Full of that Yankee Doodly Dum, Half a million boots went slogging through Hell, And I was the kid with the drum!
Say, don't you remember, they called me Al; it was Al all the time. Say, don't you remember, I'm your pal? Buddy, can you spare a dime?
President Hoover
--Hoover was president at the start of the Great
Depression--Hoover caught most of
the blame
Hoover / F.D. Roosevelt
President Hoover blamed• HOOVER’s Reaction to Great
Depression• no direct relief = no cash
payments or food directly to the needy / Hoover favored “rugged individualism” and no Federal welfare program
• indirect relief = urge cooperation among business leaders / help to charities but not directly to the poor
• GOVT Sponsored GOVT Projects: eg., HOOVER DAM
• Steps taken by Hoover to end the Depression
• Federal Home Loan Bank Act
• Reconstruction Finance Committee
• ---both too little too late
• HOOVER UNPOPULAR WITH USA PUBLIC – LOSES 1932 election to FDR -
• Not visibly active enough to stop the Depression
• uses ARMY to break up BONUS ARMY
BONUS ARMY • Hoover’s did not
respond to outcry for DIRECT RELIEF from the government
• Bonus Army dispersed at tip of a bayonet seemed to show is dislike for common people.
Hoover takes cautious action
• Calls a meeting of business leaders to voluntarily avoid worker layoffs and to not lower wages.
Hoover’s Actions: too little too late
• Hoover Dam construction• Federal Home Loan Act: lower mortgages
and stop foreclosures on farms and homes• Reconstruction Finance Corp: emergency
$$ for businesses, banks, other employers..
FDR wins election of 1932
Franklin Delano Roosevelt’s New Deal
•3 r’s • Relief• Recovery• Reform
New Deal = FDRs Plan • Govt Programs to end Great Depression
• ALPHABET Soup of Programs
– AAA– CCC– FDIC – NRA– SEC– TVA
The first 100 days FDR moved to provide. . .
• Relief: Provide immediate help to poor and unemployed
• Recovery: bring business back from bankruptcy
• Reform: install economic changes that would prevent future economic depressions
FDR’s Fireside Chats
• FDR would explain New Deal efforts to the public
• built confidence in the New Deal
• FDR was 1st president to use the radio
FDR’s plan for the Great Depression
• Glass Steagall Banking Act: established the (FDIC) – Federal Deposit Insurance Corporation/ Insured deposits up to $ 2500.00
• (SEC) Security and Exchange Commission: to police the stock market
• (FTC) Federal Trade Commission: police up corporations.
• Banking Act: federal control of Banks
Banks regulated by FDR
• Bank Holiday All banks close for four days while Federal Inspectors evaluated the banks as strong, wavering, or hopeless.
• Emergency Banking Act gave US govt. power to regulate banks
Alphabet Soup of recovery agencies
• CWA – Civil Works Administration federal effort provided work for over 4 million people: building or cleaning roads, dams, parks, schools, etc..
FDR’s New Deal
• (CCC) Civilian Conservation Corps: employment for 500,000 men in making parks, road construction, etc..
TVA
• (TVA) Tennessee Valley Authority: federal effort to build dams and electrify impoverished South
Alphabet Soup of Reforms
FDR’s NEW DEAL
• Unlike Hoover, FDR called for direct relief of Americans.
• MASSIVE government intervention in business, banking, and individuals’ economic situations.
NRA: National Recovery Administration
• Regulated industry• Set working
conditions and ended child labor
• Allowed Unions
Social Security Act
• Social Security Act: provided old age benefits, disability, unemployment
WPA
• WPA – Works Progress Administration: work relief projects such as highway construction, flood control, flood control, education, health, etc..
New Deal Critics
• Critics of FDR fell into two categories
• 1. those who thought he did not do enough
• 2. those who thought he did too much
• HUEY LONG• Share-Our-Wealth
Plan
New Deal Critic: Father Coughlin and Dr. Townsend
• Radio priest wanted to nationalize banks
• Townsend wanted to give ALL unemployed persons over 60 $200 per month pension
American Liberty League
• Critics of FDR who thought he was interfering with the free market place too much
What was the Court Packing Scheme?
• Supreme Court had struck down some of FDR’s NEW DEAL programs
• FDR tried to “reform” the court.
• Add justices • Create an age
requirement
• Show: http://www.learn360.com/ShowVideo.aspx?ID=479647
FDR ‘s Court Packing Scheme
"Brother, Can You Spare a Dime," lyrics by Yip Harburg, music by Jay Gorney (1931)
They used to tell me I was building a dream, and so I followed the mob, When there was earth to plow, or guns to bear, I was always there right on the job. They used to tell me I was building a dream, with peace and glory ahead, Why should I be standing in line, just waiting for bread? Once I built a railroad, I made it run, made it race against time. Once I built a railroad; now it's done. Brother, can you spare a dime? Once I built a tower, up to the sun, brick, and rivet, and lime; Once I built a tower, now it's done. Brother, can you spare a dime?
Once in khaki suits, gee we looked swell, Full of that Yankee Doodly Dum, Half a million boots went slogging through Hell, And I was the kid with the drum!
Say, don't you remember, they called me Al; it was Al all the time. Why don't you remember, I'm your pal? Buddy, can you spare a dime?
Once in khaki suits, gee we looked swell, Full of that Yankee Doodly Dum, Half a million boots went slogging through Hell, And I was the kid with the drum!
Say, don't you remember, they called me Al; it was Al all the time. Say, don't you remember, I'm your pal? Buddy, can you spare a dime?