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US History Subject for High School: Great Depression and New Deal

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The fascinating chain of historical and political events that set in motion the Great Depression and consequently the New Deal is something that cannot be studied and examined enough! If you’re looking for a fresh way to discuss the subject with your High School students, have a look at this gray and yellow template - visually attractive and fully customizable! Take your students through a journey of the 1930’s and educate them on the impact this decade had on the US and the world!

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1930s & THE GREAT DEPRESSION: Causes

The Great Depression was “one of abundance, not of scarcity.”

~ Upton Sinclair

Additional Notes

• This image of Florence Thompson from the 1930s came to be associated with the great depression, for years to come. Thompson was a poor migrant mother at the time, like so many others. The expressions of worry and anguish on her face, literally speak of the mood of thousands of others during the same time. The image has been reprinted in various magazines, newspapers and journals over the years. It has become a symbol of sorts, of the great depression.
• In 1929 the stock market crashed causing financial ruin for millions of Americans.
• The collapse of the stock market was one of several factors that gave rise to the Great Depression.
• When Hoover’s efforts to revive the economy failed, Americans elected a democratic president, Franklin D. Roosevelt, to reverse the country’s economic decline

Essential Questions

• Economic Development: What factors might cause an economic depression?
• Geographic Diversity: How might an economic crisis affect people’s choices of where to live?
• Cultural Diversity: How and why might various ethnic groups be affected differently by an economic depression?
• What were the causes and consequences of the Great Depression?

Targets: I will be able to...

• 1) explain the causes of the Great Depression
• 2) describe what caused the stock market crash 1929
• 3) make inferences about how the economic trends of the 1920s caused the Great Depression (industry, agriculture, consumers)

CRITICAL THINKING

MAKING INFERENCES

• How did the economic trends of the 1920s help cause the Great Depression?

Think About:

• what happened in industry
• what happened in agriculture
• What happened with consumers

The Greatest Generation

• The Greatest Generation, also known as the "G.I. Generation", includes the veterans who fought in World War II
• They were born from 1901 to 1927
• They came of age during the Roaring Twenties, the Great Depression and World War II
• Journalist Tom Brokaw wrote about American members of this cohort in his book The Greatest Generation , which popularized the term

The Nation’s Sick Economy

Claim: As the prosperity of the 1920s ended, severe economic problems gripped the nation.

The Great Depression

• Great Depression 1929-WWII
• Worst economic depression in history
• Many blamed the world economy and massive war debts
• Many factors

Causes of the Great Depression

• Describe the serious problems in each area of the economy that helped cause the Great Depression
• What factors might cause an economic depression?
• Industry (pg. 465)
• Farmers/Agriculture (pg. 465)
• Consumer Spending & Credit (pg. 465-466)
• Uneven Distribution of Income (pg. 466)
• Stock Market (pg. 467-468)

Financial Collapse

• GNP decreased from $10 4 billion in 1929 to $5 9 billion in 193 2
• 90,000 businesses went bankrupt
• The average income of Americans dropped by 50%
• Unemployment went from 3% (1.6 million) in 1929 to 25% (13 million) in 1933
• By 1932 industrial output was less than half of what it was in 1929
• By November 1929 investors lost more than $30 billion - more than US spent on WWI
• In 1929, 600 banks closed
• By 1933 11,000 of 25,000 US banks closed
• By 1933 28 states did not have a bank
• Suicide rates rose (30% 1928-1932); marriages and births declined
• At its peak 25% of Americans were unemployed
• 34 million Americans had no source of income
• GNP = Gross National Product, goods and services produced annually in a country. Used as a figure to determine the over all economic strength or weakness of a nation.

How important is public confidence in the health of the economy?

CAUSES OF THE DEPRESSION 1929-WWII

STOCK MARKET CRASH 1929

BLACK THURSDAY & BLACK TUESDAY

Stock Market Crash

• “Get rich quick”
• Stock sales increased (supply); Demand would increase
• Many stocks were selling for more than they were worth
• Black Tuesday October 29, 1929
• Investors would lose $30 billion by 1930
• GM executive John J. Raskob urged Americans to invest, claiming anyone who invested $15 and month in the stock market for 20 years would end up with $80,000 - a fortune at the time
• Margin Buying - investors would buy stocks on borrowed money - if stocks fell they would find themselves deep in debt - it was risky
• Stock speculation or “playing the market” by buying and selling to make a quick profit
• Few regulations on the stock market at the time
• Black Thursday - October 24, 1929, investors suddenly start selling their stocks - supply is up and demand is down
• Black Tuesday - October 29, 1929, prices plunge, over 16 million in shares sold, investors were forced to sell their stocks at a loss, investors take huge losses
• Panic gripped Wall Street
• Many investors were wiped out
• Losses would exceed the total cost of US involvement in WWI
• Example: General Electric went from $396 to 168, GM $72 to 36

Problems in the Stock Market

• Dow Jones Industrial Average
• Buying on margin
• Speculation
• Lack of regulation
• Dow Jones Industrial Average was the most widely used barometer of the stock market’s health. The Dow is a measure based on the stock prices of 30 representative large firms trading on the New York Stock Exchange.
• Stock = a share of ownership in a company
• Through most of the 1920s, stock prices rose steadily. The Dow had reached a high of 381 points, nearly 300 points higher than it had been five years earlier.
• “bull market” —a period of rising stock price
• By 1929, about 4 million Americans—or 3 percent of the nation’s population—owned stocks.
• People were engaging in speculation —that is, they bought stocks and bonds on the chance of a quick profit, while ignoring the risks.
• Many began buying on margin—paying a small percentage of a stock’s price as a down payment and borrowing the rest.
• The government did little to discourage such buying or to regulate the market.
• In early September 1929, stock prices peaked and then fell. Confidence in the market started to waver, and some investors quickly sold their stocks and pulled out.

The stock market crash signaled the beginning of the Great Depression—the period from 1929 to 1940 in which the economy plummeted and unemployment skyrocketed. The crash alone did not cause the Great Depression, but it hastened the collapse of the economy and made the depression more severe.

POOR GLOBAL ECONOMY

Banks Failed

• 98% did not invest in the stock market
• Business owners and investors could not pay their loans leaving banks with no income
• Between 1930 and 1932 more than 5,000 U.S. banks failed
• People lost their life savings

ECONOMIC PRACTICES OF THE 1920S

Economic Practices

• Economic practices of the 1920s:
• quick profits
• farm prices
• buying on credit
• 80% of Americans had no savings
• By 1926 American consumers had purchased over $6 billion of goods on credit
• Americans were buying less—mainly because of rising prices, stagnant wages, unbalanced distribution of income, and overbuying on credit in the preceding years.
• Production had also expanded much faster than wages, resulting in an ever-widening gap between the rich and the poor.
• Although many Americans appeared to be prosperous during the 1920s, in fact they were living beyond their means.
• By 1929, some economists had warned of weaknesses in the economy, but most Americans maintained the utmost confidence in the nation’s economic health.
• When the Sears Catalog Sold Everything

Mismanaged Economy

• Mismanaged economy
• unequal distribution of wealth
• overproduction
• high tariffs on imports
• The “rich got richer and the poor got poorer”
• A large portion of the population did not have buying power

UNEQUAL DISTRIBUTION OF WEALTH

BETWEEN 1923 & 1929 THE INCOME OF THE WEALTHIEST 1% INCREASED BY 63%; THE INCOME OF THE POOREST 93% DECREASED BY 4%

Review Questions

• Why did many Americans invest in the stock market in the 1920s?
• What caused the stock market crash of 1929?
• What factors contributed to the Great Depression ?

THE GREAT DEPRESSION: Hardship & Suffering

To poet Langston Hughes, it seemed “everybody was looking for work.”

• How did the depression affect the workforce?
• What impact did the Great Depression have on living conditions in rural areas?
• How were urban communities affected by the Great Depression? In what ways did individuals and communities try to cope?
• How did economic hardship alter family life in the 1930s?

The year is 1929. The U.S. economy has collapsed. Farms, businesses, and banks nationwide are failing, causing massive unemployment and poverty. You are out of work with little prospect of finding a job.

• WHAT GROUPS OF PEOPLE WILL BE MOST HURT BY THE ECONOMIC CRASH?

Hardship & Suffering

Claim: During the Great Depression Americans did what they had to to survive.

• Targets: I will be able to …
• 1) compare and contrast the impact of the Great Depression on urban and rural living conditions
• 2) describe how unemployment affected Americans
• You are Dorothea Lange working for the Farm Security Agency chronicling the American experience during the Great Depression

Dorothea Lange

• Dorothea Lange (May 26, 1895 – October 11, 1965)
• An American documentary photographer and photojournalist
• Best known for her Depression-era work for the Farm Security Administration (FSA)
• Lange's photographs humanized the consequences of the Great Depression and influenced the development of documentary photography
• Her work brought government’s attention to the plight of Americans
• How did the Great Depression affect Americans?
• Cities pg. 472-473
• Rural areas pg. 473
• Farmers/Dust Bowl pg. 475
• Men pg. 475
• Women pg. 475-476
• Children pg. 476
• Directions: create a informative piece that contains...
• An authentic photo of the era
• A caption of the image
• A quote/first hand account
• A statistic
• An answer to the questions above
• Slide with links to sources

Impact of the Great Depression on African Americans

• As the "Last Hired and the First Fired," African Americans entered the Depression long before the stock market crash in 1929, and they stayed there longer than other Americans. By 1933, African Americans found it all but impossible to find jobs of any kind in agriculture or industry.
• African Americans were often the first to go; by 1933 as much as 25-50% were unemployed

Emma Tiller describes sharecropping during the Depression:

• “ In 1929, me and my husband were sharecroppers. We made a crop that year, the owners takin’ all of the crop. This horrible way of liven’ with almost nothin’ lasted up until Roosevelt. There was another strangest thing. I didn’t suffer for food through the Thirties, because there was plenty of people that really suffered much worse. When you go through a lot, you in better condition to survive through all these kinds of things.”

African-Americans displaced by the Great Ohio River Flood line up at a relief station in Louisville, Kentucky.The image was captured by Margaret Bourke-White; the image appeared in LIFE Magazine.

An ironic juxtaposition : African-American flood victims line up for relief below a billboard with a beaming white family proclaiming WORLD’S HIGHEST STANDARD OF LIVING.

Great Depression:

• Political Cartoon: 1931
• The Great Depression was not the first depression in US history, but it was the worst.
• The Depression would last for almost a decade.
• Millions of Americans lost their jobs and sank into poverty.
• In cities and rural areas, may people suffered from hunger, homelessness, and despair.
• Life was not all bleak during the depression. Movies, radios, and popular fiction helped lift American spirits.
• In 1929 1.5 million Americans were unemployed in 1932 12 million were unemployed
• By 1932 industrial output had fallen to about half that of 1929 --> massive layoffs and cut wages - sometimes as low as 10 cents an hour
• The general view among whites was that blacks “should not be hired as long as there are white men without work”
• Women could be hired more cheaply than men

“Work is What I Want”

• “everybody in America was looking for work.” Langston Hughes
• Massive layoffs, unemployment, falling wages; Factory workers wages fell by 1/3
• Immigration decreased
• The percentage of women in the workforce increased in the 1930s

Looking Back: Growing up as a child of the Great Depression

THE BOXCAR BOYS AND GIRLS

SHANTYTOWNS

“HOOVERVILLES”

The Grapes of Wrath

• During the early 1930s the federal government did little to aid local communities.
• Charitable organizations like the Red Cross and Salvation Army tried to provide for the needy.
• 1 out if every 5 children in NY City suffered from malnutrition - stunted growth, weak bones, dental problems
• Shanty towns = collections of makeshift shelters built out of packing boxes, scrap lumber, corrugated iron, and other thrown away items rose up outside of America’s cities. Many along bodies of water.
• Blaming the unresponsive president, the homeless mockingly referred to shantytowns as Hoovervilles and the newspapers they slept under a Hoover blankets.

Psychological Impact

• More than 20,000 Americans committed suicide in 1932 - a 28% increase
• Shame of being unemployed
• Losing businesses and homes
• Being unable to provide for family members and children
• People did not know what to do without a job
• Guilt and self-doubt
• Habits of scrimping and saving would stay for generations

THE GREAT DEPRESSION: Hoover Fails

“I do not believe that the power and duty of the [federal] Government ought to be extended to the relief of individual suffering...The lesson should be constantly enforced that though the people support the Government the Government should not support the people”

Agree or Disagree

• describe how Hoover’s beliefs shaped his response to the Great Depression
• explain the effect Hoover’s economic policies had on the Depression
• laissez-faire
• rugged individualism
• volunteerism
• assess why Hoover lost the election of 1932
• compare and contrast the Hoover and FDRs responses to the Depression

History Vault

(S1, E6, 21 min-29 min)

“MANY PEOPLE HAVE LEFT THEIR JOBS FOR A MORE PROFITABLE ONE OF SELLING APPLES”

~ PRESIDENT HERBERT HOOVER

• Hoover had been in office just 9 months
• Believed in laissez-faire
• Just months before the Depression he claimed the U.S. was, “nearer to the final triumph over poverty than ever before.”

Hoover’s Philosophy

• Prior to the crash most believed the government should not interfere in the free-enterprise system - laissez-fai re
• Hoover’s political beliefs stemmed from the notion of rugged individualism
• Hoover believed in volunteerism , that private charities and local governments could best provide for those in need; businesses should “volunteer” to pay more in wages
• Laissez-faire = a policy or attitude of letting things take their own course, without interfering; abstention by governments from interfering in the workings of the free market
• Hoovers most urgent task was to ease human suffering
• Hoover rejected calls for the federal government to provide direct relief - food, shelter, clothing, and money
• Hoover argued that direct federal relief would create vast bureaucracy, inflate the federal budget, and undermine the self-respect of people receiving aid
• Hoover urged Americans to life themselves up through hard work and strength of character
• Rugged individualism = the idea that success comes from through individual effort and private enterprise
• “A voluntary deed,” said Hoover, “is infinitely more precious to our national ideas and spirit than a thousandfold poured from the treasury.”
• Millions of Americans agreed that voluntary efforts were preferable however, voluntary efforts could not deal with the scale of the depression

LIFE ON THE FARM

• People in the cities needed food but could not pay for it.
• As demand for food shrank, prices plummeted, and formers had more goods than they could sell.
• While people went hungry in the cities, farmers in rural areas were forced to let their crops rot in the fields and to slaughter excess cattle that they could not afford to feed.
• As their incomes fell, many farmers were unable to make their mortgage payments.
• Banks foreclosed on farms all across America.
• Tenant farmers in the south, already facing crippling poverty, were hit hard.
• Cotton prices fell from 16 cents per pound in 1929 to below 6 cents in 1931
• While farmers in the midwest had too much, farmers in the south had too little
• Migrant farmers in Southwest, many Mexican immigrants, were pressured into leaving. In the 1930s some 500,000 people of Mexican descent

Hoover on Boosting the Economy

• $800 million spent on public-works programs
• stimulate business and provide jobs
• Relief for farmers
• government bought surplus farm products - p rice support
• Lent money to railroads, banks and other financial institutions
• -----> 1) All had little impact 2) shift in role of government
• Although Hoover opposed direct public relief , his administration played a more active role in the economy than any previous administration
• Within weeks of the stock market crash, Hoover called a White House conference of top business, labor and political leaders.
• Hoover urged the leaders to maintain employment and wages to revive the economy
• He issued cheerful public messages to boost consumer confidence; Most did not share Hoover’s optimism
• At Hoover’s request, Congress funded several public-works programs, including the Boulder/Hoover Dam
• Public works programs had little impact on the depression
• Relief for farmers: Hoover instructed the Federal Farm Board - created through the Agricultural Marketing Act of 1929 - to buy up surplus wheat, corn, cotton, and other farm products. The hope was that by reducing crop supplies would cause the prices to rise - the gov could store the surplus and sell when the prices were higher. This did not work. Formers refused to limit production and grew more crops.
• Home Loan Bank Act 1932 = provided money to savings banks, building and loan associations, and insurance companies for low interest mortgages. The hope was that the act would reduce foreclosures. He also believed it would encourage construction and boost employment.

Government’s Response

• Hoover’s policies failed to end the Great Depression
• His policies were a major shift in government policy
• Congress accepted the idea that the federal government can and should do something to boost the economy in a crisis
• ----> As Americans continued to suffer, they increasingly blamed Hoover

Citizens React

• By 1932 Hoover was the most hated man in America
• As confidence in Hoover eroded, radical political parties grew more vocal
• Communists and Socialists parties condemned the capitalist system
• Desperate Americans responded with hunger marches and protests
• In rural areas citizens, armed with clubs, shotguns, and pitchforks confronted local officials that foreclosed on homes and farms
• The biggest protests was staged by more than 10,000 WWI veterans and their families in 1932. They went to Washington, D.C. to support a veterans’ bonus bill that was in front of Congress. The bill would allow veterans - many were unemployed - early payment on pension bonuses due to them for service in the war. When the bill did not pass, the government used force to remove the protestors - two veterans, 2 policemen and an 11 week old were killed.
• ---> Anger against Hoover grew.

HOOVER FAILS

• Rugged individualism - the idea that success comes through individual effort and private enterprise
• Many Americans and the government believed private charities and local communities, not the federal government, should provide for those in need
• The government did fund public works programs -----> Hoover Dam
• *Growing up in the Depression
• What beliefs shaped President Hoover’s response to the Depression?
• What effect did the Hoover administration’s economic policies have on the Depression?
• Why did public unrest grow during the Hoover administration?
• If you had been president 1929-1932, what actions would you have taken? What legislation would you have passed? Why?
• How might the events of the early 1930s have been different if the Hoover administration had supported direct [ federal] relief ?
• Why did Hoover lose the 1932 election?

THE GREAT DEPRESSION FDR’s New Deal

• In his inaugural address President Franklin D. Roosevelt offered Americans hope: “First of all let me assert my firm belief that the only thing we have to fear is fear itself - nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance...This Nation asks for action, and action now.”
• How did the government’s reaction to the Great Depression affect the United States?
• Targets: I will be able to…
• 1) describe the aims of FDR’s New Deal
• 2) explain how the New Deal tackled: banking, farm, employment, business, retirement and homeowners’ crises
• 3) describe the support and criticisms the New Deal received
• 4 ) evaluate the impact of New Deal programs on modern America

Should the federal government assume the social welfare of its citizens?

• How might the Great Depression have been different if Hoover had provided direct relief?
• What should the government do?
• Economic Development: How can the federal government aid economic recovery?
• Constitutional Heritage: Why might government interference in the economy be considered unconstitutional?
• Cultural Diversity: What role might the arts play in reflecting ethnic and cultural diversity?

The Election of 1932

Franklin D. Roosevelt

• Electoral: 472

Popular: 22,821,277

Herbert Hoover

Electoral: 59

Popular: 15,761,254

• Republicans begrudgingly renominated Hoover (CA)
• With public sentiment running against the republicans, no other member was eager to step forward
• The democrats, sensing victory, nominated FDR (NY)
• FDR attacked Hoover’s handling of the depression and promised to seek fairer distribution of wealth and to put the political and economic system at “the service of the people”

Would you rather have a president be logical and straightforward, or optimistic and hopeful?

Hoover and Roosevelt’s Inaugural Addresses

• How did Hoover and FDR differ on their views on the role of the President?
• Identify key differences in the tone and content of each speech. Based on your knowledge of the 1920s and what you read in the speeches, what changed in America that accounts for the drastic differences between the two speeches?
• What problems does America face when FDR takes office? Provide specific examples.
• What does Herbert Hoover believe to be his Presidential mandate? What does Franklin Roosevelt believe to be his Presidential mandate?
• Conclusion: In your opinion, who provides a stronger plan for America’s future? Defend your position with references to the speeches.

History Vault S1E6 29:32

FDR’s Vision

• Roosevelt’s program had three general aims:
• 1) Relief to ease the plight of citizens in economic distress
• 2) Recovery to restore the economy back to health
• 3) Reform to correct ills and injustices in American society
• He promised a “new deal for the American people”

FDR’s optimism was contagious

Reviving the economy:

Poured money into the economy via federal loans and federal spending. This is sometimes known as “priming the pump.”

Many New Deal programs were based on the theories of economist John Maynard Keynes who argued that for a nation to recover from and economic depression the government needs to spend money to create jobs and boost investments.

FDR’s New Deal

• The New Deal included 15 relief and recovery measures:
• Home owners
• Direct federal relief for the unemployed
• Goal: revive the economy
• SIGNIFICANCE: significantly expanded the federal government’s role in the nation’s economy

If you were Roosevelt what areas would you target to bring the US out of the Depression?

• New Deal = A group of government programs and policies established under President Franklin D. Roosevelt in the 1930s; the New Deal was designed to improve conditions for persons suffering in the Great Depression.
• Immediately after taking office, FDR drew up 15 relief and recovery measures.
• If you were Roosevelt what areas would you target to bring the US out of the depression?
• Roosevelt called Congress into special session, over the next 100 days
• Congress approved all 15 measures
• 5 would later be overturned by the Supreme Court
• The idea is federal “lending and spending” would improve the economy
• Roosevelt’s 1st 100 days
• Goal: restore confidence in US banks
• Bank holiday all US banks closed to stop massive withdrawals
• Emergency Banking Act authorized the government to examine all banks and allow those that were financially sound to reopen
• Federal Deposit Insurance Corporation (FDIC) insured each bank deposit up to $2,500

Banks - Additional Notes

• The day after his inauguration he closed every bank in the nation for a few days.
• Roosevelt hoped this would restore confidence in the banking system. In one of his first “fireside chats” he stated, “I can assure you that it is safer to keep your money in a reopened bank than under the mattress.”
• The next morning banks reopened and $1 billion in deposits flowed in
• Federal Deposit Insurance (FDIC) (Today, the figure is $100,000 per account and $250,000 deposit)
• Goal : get farmers back in business and increase prices
• Farm Credit Administration provided low-interest, long-term loans to farmers
• Agricultural Adjustment Act (AAA) paid farmers subsidies , to reduce their output of cotton, wheat, etc.
• Supreme Court

Maine Responds to the New Deal

Farmers - Additional Notes

• On March 28 FDR issues an executive order to create the Farm Credit Administration . With these loans, farmers paid off mortgages and overdue taxes, bought back lost farms, and purchased needed farm goods and equipment.
• Agricultural Adjustment Act (AAA) = May 1933, Subsidies came from taxes. In one year the plan reduced the cotton crop by more than 3 million bales, raising cotton prices. The increase gave farmers more cash to spend, thus stimulating the overall economy.
• S u pporters f the New Deal argued the value of sound government planning. Critics said that this comes at a cost - while farmers had more money - the cost was passed to consumers and the purchasing power of city dwellers declined.
• In 1936, the Supreme Court struck down the AAA on the grounds that processing tax was unconstitutional.
• ---> Indicates growing opposition to expansion of the government's power.

Homes - Additional Notes

• Homeowners:
• Home Owners Loan Cooperation = created to address the problem of homeowners who could not meet mortgage payments. By June 1936 the HOLC saved one million American families by getting them low-interest, long-term mortgages.

Direct Federal Relief

• Federal Emergency Relief Administration (FERA) provided half a billion dollars for relief aid to go directly to state and local agencies
• By 1935 direct federal relief aid reached $3 billion
• Nearly 8 million Americans were surviving on public assistance
• Many Americans disliked this kind of aid - they wanted jobs, not handouts

How did Hoover and FDR differ in their approaches to the Great Depression?

• Civil Works Administration (CWA) organized to create jobs
• 1933-1934 the CWA paid some $750 million in wages to four million men and women
• Civilian Conservation Corps (CCC) aided unemployed men 18-25
• Planted trees, laid out park trails, developed campgrounds and beaches
• They earned a dollar a day
• Enrolled nearly 2.5 million

CCC Camps in Maine

Jobs - Additional Notes

• CWA - Many of these jobs included raking leaves and picking up litter
• CCC = Initially 250,000 men left home and went to army camps for CCC training.
• Once trained they worked in the woods clearing brush, planting trees, laid out park trails, developed campgrounds and beaches.
• They earned a dollar a day.
• Most of their earnings were sent home.
• The CCC enrolled nearly 2.5 million young men.
• Maine; http://www.maine.gov/sos/arc/ccc/
• http://bangordailynews.com/2013/05/22/outdoors/maines-ccc-boys-honored-for-conservation-work-in-1930s-and-40s/
• https://livingnewdeal.org/us/me/
• The CCC would tackle the soil erosion that had caused the Dust Bowl. Trees would be planted to block the wind swept plains.

In what ways did Maine benefit from the CCC?

• Tennessee Valley Authority (TVA) created to target the impoverished Tennessee Valley (seven-state region)
• Plagued by floods, poverty, malnourishment, disease, etc.
• Built 38 dams
• Tackled malaria, illiteracy, soil erosion, etc.
• The TVA is the most notable of FDR’s programs

TVA - Additional Notes

• Tennessee Valley Authority (TVA) = created in 1933. created to target the impoverished Tennessee Valley (seven-state region) that was plagued by flood due to clear cutting and erosion, poverty, malnourishment, disease, etc.
• The TVA built 38 dams to provide flood control and electricity. Other TVA programs targeted malaria, illiteracy, soil erosion, and overall improve the standard of living. The TVA is the most notable of FDRs “alphabet soup.”

#4 THE GREAT DEPRESSION FDR’s New Deal

• In his inaugural address President Franklin D. Roosevelt offered Americans hope: “First of all let me assert my firm belief that the only thing we have to fear itself - nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance...This Nation asks for action, and action now.”
• 1) describe the support and criticisms the New Deal received
• 2) explain how FDR attempted to prevent the Supreme Court from overturning his programs
• 3 ) evaluate the impact of (Second) New Deal programs on modern America
• The liberals on the left argued that the New Deal did not go far enough to provide relief, recovery, and reform
• Conservatives on right said the New Deal had gone too far - pushing gov into areas in which it had no right to interfere
• The federal deficit rose from roughly $1.3 billion in 1933 to $3.5 billion in 1936

Second New Deal

• Works Progress Administration (WPA) created more jobs for the unemployed
• Rebuilt 350 airports, 100,000 public buildings, 78,000 bridges, 500,000 miles of roads
• Social Security Act (3 provisions)
• Provided unemployment insurance
• Pensions for retirees
• Fed-State program to fund disabled, elderly, wives and children of men that died
• Officially National Labor Relations Act (1935)
• The most important piece of labour legislation enacted in the United States in the 20th century
• Its main purpose was to establish the legal right of most workers
• Union membership among non-farm workers grew
• Helped improve the economic standing of working Americans
• Greatly broadened Congress’s power

Additional Notes - Wagner Act

The protection that labor unions gained by the Wagner Act helped them to grow quickly.

• Union membership among non-farm workers grew from around 12 percent in 1930 to around 31 percent by 1950
• This increase helped improve the economic standing of many working-class Americans in the years following World War II.

Most significantly, Jones and Laughlin greatly broadened Congress’s power.

• Previously, neither the federal nor the state governments were thought to have sufficient power to control the large corporations and holding companies doing business in many states.
• Now, far beyond the power to regulate interstate commerce, Congress had the power to regulate anything “essential or appropriate” to that function.

Fair Labor Standards Act

• The law established a minimum wage (25 cents per hour, soon to rise to between 30 and 40 cents per hour)
• A standardized 44-hour work week (which would later drop to 40 hours)
• A requirement to pay extra for overtime work
• And a prohibition on certain types of child labor

Why might the Social Security Act be considered the most important achievement of the New Deal?

THINK ABOUT:

• The types of relief needed in the 1930s
• Alternatives to government assistance to the elderly, the unemployed, and the disabled
• The scope of the act

The Election of 1936

Electoral: 523

Popular: 27,747,636

Alfred Landon

Electoral: 8

Popular: 16,679,543

1932 - Additional Notes

• Popular: 22,827,277
• Since 1932 the national income increased from $43 billion to more had $80 billion
• Some 9 million still lacked regular jobs and 3.5 million were on the payroll of the CCC and WPA
• the NRA, AAA and 5 other New Deal measures had been deemed unconstitutional
• Most lopsided victory in over 100 years

Court Packing

• “Nine Old Men” (6 were over 70)
• Asked Congress to grant him power to appoint one new justice for each justice over 70
• Critics came from all sides - would disrupt checks and balances
• Congress denied the request...
• ...but FDR “won” - the Supreme Court soon upheld SS and other reforms
• ...and FDR eventually replaced 8 of the 9 justices!

Additional Notes: Court Packing

• Fair Labor Standards Act of 1938: Maximum Struggle for a Minimum Wage
• This Is How FDR Tried to Pack the Supreme Court

The Living New Deal Map

Projects By State

How is the New Deal still working for America? Maine? Our towns?

• What New Deal programs tackled the banking, farm, and homeowners’ crises?
• How did the Roosevelt administration attempt to restore confidence in the banking system?
• How did the New Deal provide relief for the unemployed?
• What criticisms were aimed at the New Deal? What were some successes of the New Deal?