The Great Depression and the New Deal

1
The Great Depression and the New Deal
2
Objective Questions

• What were the causes of the stock market crash of
  1929?
• How did the Great Depression affect American
  workers?
• Why was the Great Depression less severe in Texas
  than in other parts of the country?

3
The Great Depression in Texas

• The Depression was not as severe in Texas as in
  other parts of the country.
• Few Texans owned stock. Few lost their savings
  in the crash.
• Texas had little industry. Few Texans lost their
  jobs when factories closed.
• Much of Texas had been rural and poor before the
  crash. Many people felt little change in their
  lives after the crash.
• An oil boom in East Texas in 1930 and 1931 helped
  that part of the state.
• About 400,000 Texans were out of work by 1932.
  Women, African Americans, and Hispanic Americans
  had the highest unemployment rates.

4
The Great Depression in Texas

• Some people turned to crime to solve their
  problems.
• Bonnie and Clyde, two of Americas most famous
  criminals, came from Texas.
• Government leaders in Texas took steps to
  provide relief during the Depression.
• They created state jobs.
• They passed a law in 1935 to provide pensions for
  the elderly. A pension is a grant of money paid
  to someone who has retired.
• Throughout the 1930s, Texas governors tried a
  variety of programs designed to boost the
  economy. None had the power to pull Texas out of
  the Depression.

5
The Great Depression

• Causes of the Great Depression
• Wealth in the United States was spread out
  unevenly. A small group of rich people held most
  of the nations wealth.
• Most people did not have enough money to buy
  goods to keep businesses going.
• Farmers faced hard times during the 1920s.
• Foreign trade slowed in the late 1920s.

• Impact of the Great Depression
• One out of four workers was unemployed by 1932.
• President Hoover offered government loans to help
  business and agriculture. The loans were not
  enough to help the economy recover, however.
• Depression - a period of low economic activity
  and high unemployment.

6
World Wide Depression

• Throughout the 1920s, while the American economy
  was booming, European countries had been
  suffering economic hard times. They were still
  trying to recover from the impact of WWI.
• Also, the U.S. passed high tariffs on imported
  goods to give an advantage to American
  industries, which restricted international trade.
• When the depression hit the U.S., our trading
  partners around the world could not help us.

7
Stock Market Booms

• Stock prices rose steadily during the 1920s.
• Dow reached as high as 381 points.
• People were eager to take advantage of the bull
  market.
• Bull market was a period of rising stock prices.
  
• American rushed to buy more stocks and bonds.

8
Price Speculation

• People began buying on speculation, meaning
  buying on a chance of a quick profit while
  ignoring the risks.
• They also began buying on margin, paying a small
  percentage of a stock price as a down payment and
  then borrowing the rest.
• This created unrestrained buying and selling and
  the market skyrocketed.
• Practice of buying on Margin led to major bank
  failures

9
Causes of the Great Depression

• Tariffs and War Debt policies cut down the market
  for goods to be sold in foreign markets.
• The Crisis in the Farm sectors
• The Availability of easy credit.
• Unequal Distribution of Income.

10
Economic Troubles

• Background
• Many people became wealthy while others couldnt
  earn a decent living.
• Farmers and Consumers were steady going into debt.

11
Industry Trouble

• Key Industries such as the railroads, textiles
  and steel had barely made a profit.
• Railroads had lost money due to new forms of
  transportation such as buses, cars, and trucks)
• Mining and Lumber were no longer needed.

12

• 3. Coal Mining was going out of style because of
  new forms such as hydroelectric power.
• 4. New Houses being built started to slow down
  and people stopped buying houses.

13
Uneven Distribution

• The rich got richer, the poor got poorer.
• More than 70 of the nations families earned less
  than 2500 per year.
• People bought a new outfit only 1x per year.

14
Unequal Distribution of Income

• Economic fact- poor people dont hoard their
  money- they spend it on necessities
• rich people can only spend so much money on
  luxuries - then they invest their money
• Not enough people had money to spend on luxuries
  and necessities to keep the consumer industry
  going

15
Consumers

• They had less money to spend.
• Higher Prices created less spending.
• People were living beyond their means.
• Credit became really big during this time people
  had trouble paying off debts

16
Overproduction of Consumer Goods

• Market for consumer goods saturated- by 1929

17
Hoover Becomes President

• Election of Herbert Hoover v. Alfred E. Smith.
• Election of 1928- Hoover won because he had a
  major advantage he could point to years to
  Republican prosperity.
• Overwhelming Hoover victory.

18
Hoover

• After the crash, Hoover tried to reassure
  Americans that the nations economy was sound.
• He believed the Americans should remain
  optimistic and go about their daily lives.

19
Hoover

• Hoover felt that the government should pay a
  limited role in helping to solve problems.
• He believed in Rugged Individualism, the idea
  that people should succeed through their own
  efforts.

20
Hoover

• Hoover opposed any form of federal welfare or
  direct relief of the needy.
• Said it would weaken peoples self esteem and
  moral fiber.
• Hoovers responses to the Great Depression shocked
  and frustrated suffering Americans.

21
Hoover

• Called together key leaders in business, banking
  and labor to try and find a solution to the
  economy.
• Asked employers not to cut wages or lay off
  workers or go on strike.

22
Hoover

• He created a special organization to help private
  charities to generate contributions for the poor
• (NO ONE HAD MONEY!)
• None of the things he did made a difference.

23
Stock Market

• Oct 24, 1929, the stock market plunged.
• People began to dump stock very quickly.
• This is known as Black Thursday.
• Oct. 29, 1929, known as Black Tuesday, the day
  that the bottom fell out.
• Everyone was selling everything at this point
• 16.4 Million shares of stock were dumped that day.

24
Stock Market Crash

• Many people began to invest in the Stock Market
  despite the bad economy.
• It became the most visible symbol of a prosperous
  American economy.

25
Stock Market on Oct. 29, 1929
26
The trading floor of the New York Stock Exchange
just after the crash of 1929. On Black Tuesday,
October twenty-ninth, the market collapsed. In a
single day, sixteen million shares were traded--a
record--and thirty billion dollars vanished into
thin air. Westinghouse lost two thirds of its
September value. DuPont dropped seventy points.
The "Era of Get Rich Quick" was over. Jack
Dempsey, America's first millionaire athlete,
lost 3 million. Cynical New York hotel clerks
asked incoming guests, "You want a room for
sleeping or jumping?"
27
Stock Market Crash

• Practice of buying on Margin led to major bank
  failures
• Black Thursday- October 24,1929
• Black Tuesday - October 29,1929

28
The Stock Market Crash

• It is often assumed that the Great Depression
  was caused by the Great Crash in the fall of
  1929, but this is an oversimplification.
• The stock market crash was just one of the
  causes.
• There were other serious weaknesses in the U.S.
  economy.

29
The Crash

• Sept. 1929, stock market peaked and fell.
• Confidence wavered
• People began to pull money out.

30

• People who bought on credit were stuck with huge
  debts.
• Most people lost their savings.
• Investors lost about 30 billion.. The same
  amount spent on WW1.

31
Financial Collapse

• Stock Market signaled the beginning of the Great
  Depression. (1929-1940)
• Economy plummeted and unemployment skyrocketed.
• However, the crash did not alone cause the Great
  Depression.

32
Banks and Business Failure

• People panicked and withdrew money from banks.
• Banks had invested lots of money so people
  couldnt get their money
• 1929-600 banks closed.
• Government did not protect or insure bank
  accounts, millions lost all their money.

33
Bank Failures

• Thousands of bank
  failures contributed to
  the Great
  Depression.
• Rumors often led bank
  customers to panic and
  withdraw all their
  funds.
  This is called a run on the bank.
• When the bank ran out of funds, the other
  depositors lost all their money and the bank
  went bankrupt.

34
Bank Failure cont

• Unemployment leaped from 3 to 25.
• 1 out of every 4 workers.
• 1930- Congress passed the Hawley Smoot Tariff Act
  was established the highest protective tariff in
  US History.
• Tariff made unemployment worse in industries.

35
Police stand guard outside the entrance to New
York's closed World Exchange Bank, March 20,
1931. Not only did bank failures wipe out
people's savings, they also undermined the
ideology of thrift.
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Unemployed men vying for jobs at the American
Legion Employment Bureau in Los Angeles during
the Great Depression.
38
Hardships and Suffering

• People lost their jobs and were evicted from
  their homes. Most ended up on the streets.
• Shantytowns began to rise. They were towns
  consisting of shacks.
• Food and Bread lines (soup kitchens) became a
  common sight.

39
Income and Spending
Consider this . . .
In this manner, the U.S. economy became
steadily worse between 1929 and 1933.
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• Not enough people had money to spend on luxuries
  and necessities to keep the consumer industry
  going

41
Business Failures

• 90,000 businesses went bankrupt
  between 1929 and 1933.
• One reason for this was that many
  industries
  had failed to adjust their
  high production rates to the
  declining demand in the late 1920s.
• This was especially true with what are called
  durable goods, things that last a long time,
  like refrigerators, washing machines, and
  automobiles.
• These surplus goods were already being stockpiled
  in company warehouses before the depression hit.
  Without buyers, companies could not afford to
  make more of these items. Factories had to close
  down.

42
Unemployment

• The closing of factories led to millions of
  lay-offs. This sharp increase in the
  unemployment rate was the most obvious symptom of
  the Great Depression.
• Many industries that were able to stay open were
  forced to decrease their overall production.
  They often had to turn full-time employees into
  part-time employees or lay off a portion of their
  workforce.
• The resulting unemployment or under-employment
  had a profound impact on the American economy.

43
John L. Lewis

• Formed the Congress of Industrial Organizations
  (CIO) because of the AFLs exclusion of
  unskilled factory workers

44
The photograph that has become known as "Migrant
Mother" is one of a series of photographs that
Dorothea Lange made in February or March of 1936
in Nipomo, California. Lange was concluding a
month's trip photographing migratory farm labor
around the state for what was then the
Resettlement Administration.
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Kids and the Depression

• Poor diets and lack of money for healthcare, led
  to serious health problems.
• No milk led to malnutrition and diet related
  diseases.
• Schools began to shorten their school year and
  some school closed because no one could pay their
  school taxed. Kids went to work instead.

47
Farmer and sons, dust storm, Cimarron County,
Oklahoma, 1936. Photographer Arthur
Rothstein.The drought that helped cripple
agriculture in the Great Depression was the worst
in the climatologically history of the country.
By 1934 it had desiccated the Great Plains, from
North Dakota to Texas, from the Mississippi River
Valley to the Rockies. Vast dust storms swept the
region.
48
Porch of a sharecropper's cabin, Hale County,
Alabama, Summer 1936. Photographer Walker Evans.
The marginal and oppressive economy of
sharecropping largely collapsed during the great
Depression.
49
A sharecropper's yard.Hale County, Alabama,
Summer 1936.
50
Squatter's Camp, Route 70, Arkansas, October,
1935.
51
Part of an impoverished family of nine on a New
Mexico highway. Depression refugees from Iowa.
Left Iowa in 1932 because of father's ill health.
Father an auto mechanic laborer, painter by
trade, tubercular. Family has been on relief in
Arizona but refused entry on relief roles in Iowa
to which state they wish to return. Nine children
including a sick four-month-old baby. No money at
all. About to sell their belongings and trailer
for money to buy food. "We don't want to go where
we'll be a nuisance to anybody." Children of
migrant workers typically had no way to attend
school. By the end of 1930 some 3 million
children had abandoned school. Thousands of
schools had closed or were operating on reduced
hours. At least 200,000 children took to the
roads on their own.  Summer 1936. Photographer
Dorothea Lange.
52
Bud Fields and his family. Alabama. 1935 or 1936.
Photographer Walker Evans.
53
Migrant Mother.
54
Hooverville in Central Park, NY
55
Waiting for the semimonthly relief checks at
Calipatria, Imperial Valley, California. Typical
story fifteen years ago they owned farms in
Oklahoma. Lost them through foreclosure when
cotton prices fell after the war. Became tenants
and sharecroppers. With the drought and dust they
came West, 1934-1937. Never before left the
county where they were born. Now although in
California over a year they haven't been
continuously resident in any single county long
enough to become a legal resident. Reason
migratory agricultural laborers. March 1937.
Photographer Dorothea Lange.
56
Hooverville in Oregon
57
Unemployed workers in front of a shack with
Christmas tree, East 12th Street, New York City.
December 1937. Photographer Russell Lee.
Tattered communities of the homeless coalesced in
and around every major city in the country.
58
African Americans and Latinos were the lowest
paid and dealt with increasing hatred of the
whites who were also competing for the same jobs.
59
Hobos

• Hobos were invented at this time.
• They were people who wandered around the country,
  hitching rides on railroad box cars and sleeping
  under bridges.

60
Social and Psychological Effects

• Many people lost their will to live.
• Suicide rates rose more than 30.
• Adults stopped going to the doctor or dentist
  because they couldnt afford it.

61
The Farming Crisis

• Before the Great Depression, U.S farmers had been
  suffering from a depression in the farm economy
  due to overproduction.
• The resulting low prices for farm products
  made it hard to make a profit.
• They became deeply in debt and many
  farms were repossessed and sold at
  auction.
• In the early 1930s, farmers in parts
  of the U.S. were hit by a severe drought
  that came to be called the . . .

62
Farmers lost money in the 1920s
63
Roadside stand near Birmingham, Alabama, 1936.
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A man in the midst of a dust storm
66
A Dust Storm in Eastern Colorado
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Sand covering a farm after a dust storm
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Another Dust Storm
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Farmer and sons, dust storm, Cimarron County,
Oklahoma, 1936. The drought that helped cripple
agriculture in the Great Depression was the worst
in the climatological history of the country. By
1934 it had dessicated the Great Plains, from
North Dakota to Texas, from the Mississippi River
Valley to the Rockies. Vast dust storms swept the
region.
72
An abandoned farm in Kansas.
73
In one of the largest pea camps in California.
February, 1936.
74
People lived in tent cities
75
Another mother and her child living in a lean-to
tent
76
Question of the Day

• Describe what you see in this picture. What is
  happening here?
• What is unusual about the family in this picture?
  
• What reasons can you think of for why they are in
  this situation?

77
Kitchen in house of Floyd Burroughs,
sharecropper, near Moundville, Hale County,
Alabama. Summer 1936.
78
People living in miserable poverty, Elm Grove,
Oklahoma County, Oklahoma. August 1936.
79
Leland, Mississippi, in the Delta area, June
1937.
80
Part of the daily lineup outside the State
Employment Service Office. Memphis, Tennessee.
June 1938.
81
The unemployment rate was high
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Many Tejanos were out of work
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Young boys waiting in kitchen of city mission for
soup which is given out nightly. Dubuque, Iowa.
April 1940. For millions, soup kitchens offered
the only food they would eat.
85
Durham, North Carolina, May 1940.
86
Upstairs bedroom of family on relief, Chicago,
Illinois. April 1941
87
Children at Hill House, Mississippi.
88
Sharecropper house on dirt. Dirt log cabin on
right is much older than attached frame cabin on
left. Both have halfstones. Note dog run and
flowering plants in tin can and tubs. This is
typical of Negro dwellings. Log build visible.
Through the back door is the corncrib. Near Olive
Hill, North Carolina.
89
An African-American maid.
90
Mississippi Delta children.
91
Plantation cotton cabin.Mississippi Delta, near
Vicksburg.
92
Tenant family near Greensboro, Alabama.
93
Part of the daily lineup outside the State
Employment Service Office. Memphis, Tennessee.
June 1938.
94
The unemployment rate was high
95
Many Tejanos were out of work
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Hoovervilles
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Peddler who slept in a cellar
109
Blind Peddler
110
Police Station Lodger- a
plank for a bed
111
Mens Lodging In West 47th St. Station
112
Womens Lodging In the 47th St. Station
113
Home of an Italian Ragpicker
114
Young boys waiting in kitchen of city mission for
soup which is given out nightly. Dubuque, Iowa.
April 1940. For millions, soup kitchens offered
the only food they would eat.
115
Durham, North Carolina, May 1940.
116
Houses in Eutaw, Alabama.
117
Church near Paradis, Louisiana
118
Feet of children on a farm near Greensboro,
Alabama.
119
Greensboro, Alabama
120
Main street.Greensboro, Alabama.
121
Miss Teal, nurse, brings hookworm medicine to
Lewis family, R.R. (Rural Rehabilitation)
clients. Coffee County, Alabama.
122
Part of RR (Rural Rehabilitation) family
children have hookworm, mother has pellagra and
milk leg, according to nurse's report. Father
works on WPA (Work Projects Administration).
Coffee County, Alabama.
123
Unemployed workers in front of a shack with
Christmas tree, East 12th Street, New York City.
December 1937. Photographer Russell Lee.
Tattered communities of the homeless coalesced in
and around every major city in the country.
124
This woman, wife of an ex-farmer now living on
relief, had pellagra in an advanced stage. She
has had some treatment and shown great
improvement but there were still evidences of
mental disturbance. She was the mother of twelve
children. The child in her arms has malaria as
have probably the entire family. Jefferson, Texas.
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Courtroom of the old Monroe County Courthouse
127
The American Liberty League
Formed by the DuPont family , the American
liberty League was formed for the sole purpose of
opposing FDRs reckless spending spree of the
New Deal. They believed that these socialist
programs and dictorial policies attack free
enterprise and were unconstitutional.
128
A collage of newspaper headlines from the Dust
Bowl
129
1931-1939
How many states were partially in the region most
affected by the Dust Bowl?
130
Dust Bowl

• Dust Bowl brought dust that traveled a hundred
  miles.
• The hardest hit areas were Kansas, Oklahoma,
  Texas, New Mexico and Colorado.
• Many left the Great Plains and headed west
  following the Route 66 to California. They
  became known as Okies.

131
Dust Bowl

• It was a drought that began in early 1930s that
  wreaked havoc on the Great Plains.
• It was caused by the plowing of the Plains, which
  had removed a thick protective layer of prairie
  grass.

132
The Geographic Impact of the Dust Bowl

• Lack of rain led wells to dry up and trees to
  die.
• High winds carried off the loose topsoil,
  damaging the land for future farming.
• This would lead many farmers in the region to
  give up their farms and move to states on the
  west coast seeking work.

133
World War I veterans block the steps of the
Capital during the Bonus March, July 5, 1932
(Underwood and Underwood). In the summer of 1932,
in the midst of the Great Depression, World War I
veterans seeking early payment of a bonus
scheduled for 1945 assembled in Washington to
pressure Congress and the White House. Hoover
resisted the demand for an early bonus. Veterans
benefits took up 25 of the 1932 federal budget.
Even so, as the Bonus Expeditionary Force swelled
to 60,000 men, the president secretly ordered
that its members be given tents, cots, army
rations and medical care. In July, the Senate
rejected the bonus 62 to 18. Most of the
protesters went home, aided by Hoover's offer of
free passage on the rails. Ten thousand remained
behind, among them a hard core of Communists and
other organizers. On the morning of July 28,
forty protesters tried to reclaim an evacuated
building in downtown Washington scheduled for
demolition. The city's police chief, Pelham
Glassford, sympathetic to the marchers, was
knocked down by a brick. Glassford's assistant
suffered a fractured skull. When rushed by a
crowd, two other policemen opened fire. Two of
the marchers were killed.
Bonus March
134
World War I veterans block the steps of the
Capital during the Bonus March, July 5, 1932
(Underwood and Underwood). In the summer of 1932,
in the midst of the Great Depression, World War I
veterans seeking early payment of a bonus
scheduled for 1945 assembled in Washington to
pressure Congress and the White House. Hoover
resisted the demand for an early bonus. Veterans
benefits took up 25 of the 1932 federal budget.
Even so, as the Bonus Expeditionary Force swelled
to 60,000 men, the president secretly ordered
that its members be given tents, cots, army
rations and medical care. In July, the Senate
rejected the bonus 62 to 18. Most of the
protesters went home, aided by Hoover's offer of
free passage on the rails. Ten thousand remained
behind, among them a hard core of Communists and
other organizers. On the morning of July 28,
forty protesters tried to reclaim an evacuated
building in downtown Washington scheduled for
demolition. The city's police chief, Pellham
Glassford, sympathetic to the marchers, was
knocked down by a brick. Glassford's assistant
suffered a fractured skull. When rushed by a
crowd, two other policemen opened fire. Two of
the marchers were killed.
135
Farmers

• Agriculture suffered the most
• During WW1, there had been a high demand of wheat
  and corn.
• Farmers had taken out loans for more equipment
  and now it was no longer needed and farmers went
  into debt.

136
Farmers slump

• About 50 of nation were farmers
• low crop prices since early 1920s
• bank foreclosures caused loss of farms

137
World wide Economic Slump

• Fordney-McCumber Tariff- 1922
• Hawley-Smoot Tariff-1930
• war debts- 10 billion couldnt sell their goods
  to get dollars to repay the loans

138
1930s The Red Decade
139
Gellert, Hugo, 1924. Vote Communist poster.
During the 1920s the American Communist Party was
often a victim at once of government oppression
and of its own sectarian struggles, but in the
mid-1930s it adopted a "popular front" policy of
alliances with liberal organizations. Its
membership tripled, but more important still were
the thousands of sympathizers who endorsed
party-supported causes.
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Demonstration of unemployed, Columbus, Kansas.
May 1936. Photographer Arthur Rothstein.
142
1930s election

• More and More democrats were being elected to the
  Congress and they gained control of the House.
• People began calling the shanty towns,
  Hoovervilles, as the homeless were calling the
  newspapers they used as blankets as Hoover
  blankets.

143
Dealing with the Great Depression

• Between 1929 and 1932, the Hoovers
  administration was unable to bring about a real
  improvement in the economy
• The public blamed Hoover for the worsening
  situation.
• They elected FDR in 1932. He promised Americans
  a New Deal.

Herbert Hoover
F. D. Roosevelt
144
The New Deal 1933-1941
145
The New Deal

• Roosevelt declared a bank holiday, closing U.S.
  banks temporarily to restore public confidence
  and prevent further bankruptcies.
• Congress cooperated with the president to pass
  many reform measures aimed at relieving the
  symptoms of the Great Depression.

146
Franklin Delano Roosevelt

• Grew up wealthy-Hyde Park,
• New York
• Harvard educated -law degree Columbia
• New York Senator, Assistant Secretary of Navy,
  Vice Pres. candidate, Governor New York,

147
Ending the Great Depression

• New Deal programs like the PWA, the WPA, the NYA
  and the CCC were primarily aimed at putting
  people to work. This would theoretically prime
  the pump by increasing spending, which should
  increase production and, ultimately, create more
  jobs.
• Historians suggest that these programs, while
  they served to improve public morale, were
  insufficient to really turn the economy around.
• The Great Depression was finally ended by the
  beginning of World War II and the full employment
  it provided.

148
FDRs Beliefs

• The only thing we have to fear is fear itself
• Fireside chats on the radio
• Emergency Banking Relief Act

149
Polio

• Became ill 1921 at age of 39
• walked with aid of heavy metal braces

150
Hundred days

• 15 major pieces of legislation passed in the
  first three months of FDRs administration

151
The New Deal

• President Franklin Delano Roosevelt (FDR)sets out
  to restore a nation in trouble. He begins with
  his New Deal promises. The first thing FDR has
  to do is stop the panic. This is where he tells
  the American people in his Inaugural Address,
  the only thing we have to fear is fear itself.
  This helps to restore some confidence in the
  population. FDR continued to address the populous
  in a series called the Fireside Chats. The New
  Deals Design was that of economic stimulus
  geared toward the working class.

152
The New Deal

• Relief, recovery and reform
• Civilian Conservation Corps (CCC)
• Brain trust
• An example of pump priming is the use of
  government funds to stimulate the economy, in
  essencethe New Deal.

153
The New Deal

• FDRs 1st 100 days in office was characterized
  by action FDR began a myriad of legislation.
• 1st he created a bank holiday to stop the
  landslide, it lasted four days.
• 2nd He created the (EBA) Emergency Banking Act
  that set up new procedures for the Department of
  the Treasury to inspect banks
• 3rd The Glass-Steagall Act established the FDIC
  to restore confidence in the banking system.
• 4th Next, they set out to regulate the stock
  market with the Federal Securities Act. This was
  the predecessor to the (SEC) Securities
  Exchange Commission which was designed to curb
  irresponsible trading practices.

154
The New Deal

• In 1933, the (AAA) Agricultural Adjustment Act
  paid farmers to plow under their crops. In 1936,
  the Supreme Court declared the agency
  unconstitutional.
• The AAA Favored large landowners over tenant
  farmers believing it would trickle down.
• If one were to ask a question about the AAA, one
  might say, How could the government help reduce
  farm surpluses and raise prices?
• The Government would place production limits and
  pay farmers subsidies for leaving some of their
  land idle. Farm prices were also to be subsidized
  up to the point of parity.

155
The New Deal

• In 1938, the (TVA) Tennessee Valley Authority was
  a series of projects designed to reduce
  electricity cost in the Tennessee Valley region
  of 40,000 square miles stretching over 7 states
  Tennessee, Kentucky, Virginia, North Carolina,
  Alabama, Georgia, Mississippi by building
  hydro-electric dams.

156
The New Deal

• The (CCC) Civilian Conservation Corps was created
  to put young men to work in various types of
  construction like dams, building bridges
  planting trees.

157
The New Deal

• Under (NIRA) The National Industrial Recovery
  Act, Various types of public works projects were
  created.
• Under (NIRA) The (NRA) was established that set
  in place fair standards for competition, banned
  child labor, set standards for the work placeetc.

158
The Supreme Court

• It declared that both NIRA the AAA were
  unconstitutional.
• FDR believed that the Supreme Court was too
  conservative.
• Because the New Deal Programs competed with
  private industry, technically they are
  unconstitutional.
• The Court Packing Bill
• 6 new justices wanted by FDR
• Many believed this was a violation of the
  Constitution.
• Instead, FDR appointed a new Chief Justice in
  Hugo Black plus seven other justices due to
  resignations.

159
Recession of 1937

• The severe recession in 1937 was primarily due to
  a reduction of federal expenditures for relief
  programs

160
Opponents of FDR

• Supported the redistribution of wealth
• Senator Huey P. Long share-our-wealth
• Father Charles Coughlin radio priest
• Dr. Francis Townsend retirement benefits
• Alfred Landon Kansas Governor
• Various Industrialists like the DuPont Family
• Helped formed the American Liberty League
• The League stated that it would work to "defend
  and uphold the Constitution" and to "foster the
  right to work, earn, save and acquire property.
• They would support free enterprise and oppose the
  New Deal.

161
1936 Presidential Election

• Alfred Landon Governor of Kansas
• Republican Presidential nominee who opposed FDR.
• He only received 2 of the 48 states electoral
  votes.
• FDR
• Democratic incumbent
• Carried 60.8 of the popular vote
• Received electoral votes for 46 of 48 states

162
Father Charles Coughlin
Father Charles Edward Coughlin was a
Canadian-born Roman Catholic priest at Royal Oak,
Michigan's National Shrine of the Little Flower
Church. He was one of the first political leaders
to use radio to reach a mass audience, as more
than forty million tuned to his weekly broadcasts
during the 1930s. He blamed Jewish bankers for
the depression. Early in his career Coughlin was
a vocal supporter of Franklin D. Roosevelt and
his early New Deal proposals, before later
becoming a harsh critic of Roosevelt.
163
Huey P. Long - A.K.A . Kingfish
Louisiana governor Huey P. Long created the Share
Our Wealth program in 1934, with the motto "Every
Man a King," proposing new wealth redistribution
measures in the form of a net asset tax on
corporations and individuals to curb the poverty
and crime resulting from the Great Depression.
164
Dr. Francis E. Townsend

• In 1935, partly in response to the continued
  growth of the Townsend Plan, President Franklin
  D. Roosevelt proposed his own old-age policy,
  which was less generous than Townsend and
  Clement's proposal. The president's policy
  included a program for poor older people with
  matching payments from the federal government,
  known as Old Age Assistance, and a national
  old-age annuity program that later was called by
  all Social Security.
• The Townsend Plan was a proposal that the
  governor would give 200/month to everyone over
  60 to be spent within a few weeks.

165
Harry L. Hopkins
Head of the Federal Emergency Relief
Administration (FERA) under FDR.
166
John Maynard Keynes
British economist who believed that government
deficit spending in a recession could help the
economy recover. This is roughly what the U.S.
did under FDR.
167
Mary McLeod Bethune
Black educator who was appointed to the advisory
committee of the National Youth Administration
under FDR.
168
Eleanor Roosevelt

• FDRs Wife
• Without her influence, the Federal Writers
  Project would have never developed.
• Tirelessly worked for the equality of all as a
  civil rights advocate.
• Co-founder of Freedom House.
• During her time at the United Nations she chaired
  the committee that drafted and approved the
  Universal Declaration of Human Rights.

169
Francis Perkins
Woman held the highest position in the New Deal
administration as Secretary of Labor
170
Scottsboro Boys
The Scottsboro Boys were nine black defendants in
a 1931 Scottsboro, Alabama rape case. The case
was heard by the United States Supreme Court
twice in Powell v. Alabama and Norris v. Alabama.
These decisions established the principles that
criminal defendants are entitled to effective
assistance of counsel and that people may not be
de facto excluded from juries because of their
race.
171
Second New Deal The 2nd Hundred Days

• Laws passed after congressional elections of 1934
  in the year 1935
• The main reason for the new deal is the rise of
  dissident challenges to the 1st New Deal
• (WPA) Works Progress Administration
• Headed by Harry Hopkins
• Created as many jobs as possible
• Paycheck with dignity
• It failed because it spent its money too
  carefully and slowly.
• Employed 2 million at any given time.

172
The 2nd New Deal The 2nd Hundred Days

• National Youth Administration
• financial aid for education
• Students worked off loans

173
The New Deal

• Wagner Act
• Defined unfair labor practices
• Established (NLRB) National Labor Relations Board
  to settle disputes between employers employees

174
The New Deal

• Social Security Act
• Established the Social Security Administration
• Provided pensions for Retirement
• Unemployment compensation funded by employer tax.
• Provided aid to disabled
• Employees and their Employers pay for the Social
  Security program.

175
The New Deal

• Rural Electrification Administration
• Helped to bring cheap utilities to outlying areas
• Public Utility Holding Company Act of 1935
• Attempt to attack holding companies it failed

176
Lasting Impact of the New Deal

• The New Deal expanded the governments role in
  the economy.
  The Glass-Steagall
  Act created the Federal Deposit Insurance
  Corporation (FDIC)- which insures banking
  accounts preventing bank failures
  Security and
  Exchange Commission (SEC)- regulates and
  stabilizes the stock market
• The Social Security Administration provides
  pensions for the elderly
  aid to families
  with dependent children
  unemployment compensation
  assistance for the handicapped

177
End of the Depression

• The Rise of Hitler and WWII is generally accepted
  as the end of the Great Depression.

178
Significant Events

• 1929
• Hoover Elected President
• Stock Market Crash
• Agricultural marketing Act passed
• 1930
• Hawley-Smoot Tariff
• Dust Bowl begins
• Black Shirts in Atlanta organize against Blacks
  for jobs
• 1931
• Scottsboro Boys
• American Communist Party stages Hunger March on
  Washington
• 1932
• Glass-Steagall Banking Act Passed
• Reconstruction Finance Corporation Established
• Bonus March on Washington
• FDR Elected President