The Great Depression

1
The Great Depression The New Deal 1928-1942

• Unit 6

2
Themes To Look For While You Are Reading

• Notice how the 1920s were great for anybody that
  wasnt farming
• Look at the credit habits of the 1920s and
  compare it to todays credit crisis
• Keep mental or written notes about what happens
  after the Great Depression

3
Causes of The Great Depression

• Daily Questions
• To What did Hoover attribute the economic
  prosperity of the U.S in the 1920?
• Why did so many American farmers face economic
  hardships in the 1920s

• What was the causes of the soaring stock prices
  during the 1920s
• How were the stock market crash and the collapse
  of the banking system related

4
Bell Work

• Look at this picture from the Depression and
  write a short response to it.
• This can be in your own words and is your opinion
• Your response needs to be at least one paragraph

5
Where we Are

• 20s start tough but things get better quickly.
• By 1926 AVG wages had risen by 28
• The number of millionaires doubled
• A consumer economy one that depended on a large
  amount of spending by consumers. This was a
  change Americans-once very thrifty.
• 1928 Herbert Hoover became president of the
  United States a republican--- the 30s had been
  good under the Republicans. (Campaigned in
  Elizabethton)
• Things had went well for republicans so lets
  continue

6
So good to so bad why????

• Causes of the Great Depression
• Unequal distribution of wealth---too many had
  nothing too few had a lot
• Buying on Credit--- interest rates were low, pay
  was good, new electrical products. Americans
  bought what they wanted not needed.
• Over Production in Agriculture Industry
• The Spark --- The stock market crash of 1929

7
Causes Of The Great Depression

• There was a gross abundance of speculation in the
  United States of America- speculation- where an
  individual or groups invest on certain ventures
  to become wealthy
• Stocks, often bought on borrowed money, became
  unstable and often even the most secure stocks
  failed over night

8

• Also you must factor in the business cycle that
  is characteristic of the Capitalistic Economic
  System
• This states that you will have periods of
  economic growth and economy contraction. Both
  are natural and both typically last about the
  same amounts of time

9
Fishers Nine

• Irving Fisher outlined 9 factors interacting with
  one another under conditions of debt and
  deflation to create the mechanics of boom to
  bust. The chain of events proceeded as follows
• (1) Debt liquidation and distress selling
• (2) Contraction of the money supply as bank loans
  are paid off
• (3) A fall in the level of asset prices
• (4) A still greater fall in the net worth's of
  business, precipitating bankruptcies

10
Fishers Nine

• (5) A fall in profits
• (6) A reduction in output, in trade and in
  employment.
• (7) Pessimism and loss of confidence
• (8) Hoarding of money
• (9) A fall in nominal interest rates and a rise
  in deflation adjusted interest rates

11
Fishers Nine Simplified

• 1) Not paying of Debts and Fear selling
• 2) Money Supply Deceases as loans to Banks are
  paid off
• 3) Peoples net worth decreases
• 4) Business's net worth continue to decrease
  bankruptcy becomes inevitable

12
Fishers Nine Simplified

• 5) Business profits fall
• 6) People Buy Less Businesses fire employees and
  make less goods
• 7) People view the economy negatively
• 8) People Stop spending money
• 9) Savings account interest rates decline in
  value Loan interest rates increase.

13
The Stock Market

• Company wants to get started or expand,--- they
  need money
• Go to public sale shares of Co. called stock
• People bought stocks on Margin--- buying on
  credit
• 1 share cost 100.00
• You buy 10 shares --- 100.00 your money borrow
  900.00 sale make a profit.
• Everyone was doing it
• You buy a lot with a little--- stocks sold for
  more than they were worth
• 1929 29 brokers loan 40 million a month
• Bull Market A strong market

14
1929 The Good times End.

• Bear Market--- stocks go down 100.00 stock drops
  to 20.00 now you have a problem.
•  
• Oct. 29, 1929--- Black Tuesday bottom fell out of
  the stock market--- people panic go to banks to
  withdraw money (Nov. 2, 1929 Dec 24, 1931 March
  18, 1933)
• Banks cant pay--- close their doors
• 9 million savings accounts gone
• 1yr after crash 1300 banks closed
• In next 3 yrs 5000 banks close
• no banks to supply capitol business industry
  close
• We are now living in a Depression one that will
  become the greatest the world has ever witnessed

15
Friedman vs. Keynes

• Milton Friedman (1912-2006) believed that the
  Depression was caused by a lack of money
• The stock market collapsing and a run on failing
  banks left too little money in the hands of the
  common person

• John M. Keynes (1887-1992) argued that the lack
  of government interference in the economy led to
  the Depression
• Keynes would argue that the government needed to
  spend more when the economy was down

16
Friedman Keynes
17
Impact of the Depression/Life During the
Depression

• The Farmers Prices for farm goods get lower 1929
  wheat 1.04 per bushel 1932 0.38
• Prices drop so low Farmers cannot make profits on
  goods that are shipped to market.
• Dust Bowl a severe drought in central southern
  Great Plains not weather only but also poor
  farming methods
• Black blizzards Dusts storms 60 of people lost
  farms
• Farmers tried to help each other ex Penny
  Auctions people lose farms others bid for
  pennies give back
• Farmers could at least eat.

18
The Others

• 25 of Americans were unemployed (maybe more)
• Many people become homeless (1933 est. 1 million
  people homeless)
• Some travel rails/some live in shantytowns
  called
• Hoovervilles make shift homes, cardboard, old
  cars, crates

19
The Others

• Many men abandon families when they can no longer
  provide
• Teens will hit the road and become Hobos
• Hunger was a problem for some (very little govt.
  relief)
• Breadlines soup lines (Churches Charities)
• NY every 1 out of 5 will suffer malnutrition
• Minorities women lose jobs- some Asians
  deported
• Immigration dropped
• Birth rate declines
• Marriage rates decline
• 28 increase in suicide (more men)

20
Unemployment

• Between 1921 and 1929 annual average unemployment
  rates never rose about 3.7
• 1933s rate was 24.9- meaning that almost one in
  four Americans did not have a job.
• According to the BLS the unemployment rate for
  Monday November 3rd was 6.1

21
The Effect On The Average American

• There is an old saying that a recession is when
  your neighbor losses his job, a depression is
  when you lose your job

22

• Many Americans did not feel the effects of the
  Depression at first, but as the years wore on
  every American would
• This could be anything from having work hours or
  pay cut, loss of benefits, loss of job, or in the
  worst cases the lost of your home

23
Hoover as President

• Hoover is blamed. Hoover blankets (newspapers),
  Hoover Flags (empty pockets)
• 1932 hitch hiker If you dont give me a ride
  Ill vote for Hoover
• Hoover sees his role as a cheerleader--- people
  call out for help they want basic needs met.

24
Why Hoover wouldnt help

• Create a huge bureaucracy that would make the
  government too big
• Inflate govt. budget already worried because WWI
  countries not paying loans
• Would take away self-respect.
• Ideas come from
• Rugged Individualism idea that success comes
  through individual effort Private enterprise

25
Hoovervilles

• Often times in bigger cities, those who lost
  their homes would gather together what they could
  and build homes in public places
• Hoovervilles-named for Pres. Hoover- became
  common sites across the country

26
Rural Life

• Though times were hard, many of those that lived
  in rural areas did not experience the Depression
  as those living in the cities did
• In the following slides we well see just some of
  the good, the bad and the ugly sides to living in
  the country rather than the city

• The Good-
• You could grow your own food
• More resources such as firewood, water, and game
  for hunting.
• Typically you already had what you needed on hand
  (so you could fix a lot of what broke)
• Already knew how to survive on very little
• You had alternative ways to make a living
  (Moonshing for one )

27
The Bad and the Ugly

• The Bad- you had few legal ways to make extra
  money
• You had most likely borrowed on credit for so
  long that you wouldnt have much credit at the
  stores where you shopped
• What you couldnt hunt, catch, or grow wasnt
  readily available- things like clothes, gas for
  tractors, and even medical attention

• The ugly- prices for whatever you grew were so
  low you could hardly pay for what you needed
• An example of this
• A lb. of cotton that brought 35 in 1919 brought
  6.52 in 1932
• Because you had borrowed so much on your land
  banks could easily foreclose on your farm

28
The Dust Bowl

• The Dust Bowl was caused by two overwhelming
  factors
• 1) Over use of lands by both poor agricultural
  practices and simple over use
• 2) A drought that had gone on for several years

29
AN OKLAHOMA DUST STORM
30
Values of Harvest Crops In The Dust Bowl Regions

• Colorado -51
• Kansas -53
• New Mexico -32
• Oklahoma -49
• South Dakota -57
• Texas -45
• Wyoming -40

31
Human Effects Of The Dust Bowl

• Because so many families had lost their farms to
  the banks, and the dust bowl took any other
  chances of a livelihood, many families were
  forced to leave their homes
• The textbook states that something like 800,000
  people left their homes in Missouri, Arkansas,
  Oklahoma, and Texas

32
Serious Health Problems

• Those caught in the middle of dust storms were
  left with either damaged lungs or death due to
  inhalation of dust in the air they were
  breathing.
• Even cows developed health problems and often
  died from eating dust coated grass which turned
  to fatal "mud balls" in their stomachs. High
  speed winds pushed grains of dust into things
  such as farm equipment, barns, and homes

33
Hoovers effort to help

• Invite business leaders to White House get them
  to maintain wages and employment
• Local issue city and state govt. should create
  jobs
• FED help. Reconstruction Finance Corporation
  (RFC) govt. loans money to major economic
  institutions
• Home Loan Bank Act helps banks get back on
  feet---no very beneficial why? Who would take out
  a loan if you cant pay back?
• Hawley-Smoot Tariff highest import tax in
  history made things worse
•  

34
Hoovers effort to help

• Hoovers ideas promoted by Trickle Down economics
  too little too late
•  
• Hoover failed as presidentHe was from a small
  town--- never able to change and adjust to meet
  needs of times--- Hoover takes blame.

35
Unemployment Numbers Throughout The Depression

• 1929-3.2
• 1933-24.9
• 1939-17.9
• 1940-15
• Even into the 1940s the rate averaged around 15
  to 16

36
Effects on the World

• Australia
• Australia's extreme dependence on agricultural
  and industrial exports meant it was one of the
  hardest-hit countries in the Western world,
  amongst the likes of Canada and Germany. Falling
  export demand and commodity prices placed massive
  downward pressures on wages. Further,
  unemployment reached a record high of 29 in
  1932,38 with incidents of civil unrest becoming
  common. After 1932, an increase in wool and meat
  prices led to a gradual recovery.

37
Effects on the World

• Canada
• Harshly impacted by both the global economic
  downturn and the Dust Bowl, Canadian industrial
  production had fallen to only 58 of the 1929
  level by 1932, the second lowest level in the
  world after the United States, and well behind
  nations such as Britain, which saw it fall only
  to 83 of the 1929 level. Total national income
  fell to 56 of the 1929 level, again worse than
  any nation apart from the United States.
  Unemployment reached 27 at the depth of the
  Depression in 1933.39 During the 1930s, Canada
  employed a highly restrictive immigration
  policy.40

38
Effects on the World

• France
• The Depression began to affect France around
  1931. France's relatively high degree of
  self-sufficiency meant the damage was
  considerably less than in nations like Germany.
  However, hardship and unemployment were high
  enough to lead to rioting and the rise of the
  socialist Popular Front.

39
Effects on the World

• Germany
• Germany's Weimar Republic was hit hard by the
  depression, as American loans to help rebuild the
  German economy now stopped.41 Unemployment
  soared, especially in larger cities, and the
  political system veered toward extremism. The
  unemployment rate reached nearly 30 in 1932.42
  Repayment of the war reparations due by Germany
  were suspended in 1932 following the Lausanne
  Conference of 1932. By that time Germany had
  repaid 1/8th of the reparations. Hitler's Nazi
  Party came to power in January 1933.

40
Effects on the World

• Japan
• The devaluation of the currency had an immediate
  effect. Japanese textiles began to displace
  British textiles in export markets. The deficit
  spending, however proved to be most profound. The
  deficit spending went into the purchase of
  munitions for the armed forces. By 1933, Japan
  was already out of the depression. By 1934
  Takahashi realized that the economy was in danger
  of overheating, and to avoid inflation, moved to
  reduce the deficit spending that went towards
  armaments and munitions. This resulted in a
  strong and swift negative reaction from
  nationalists, especially those in the Army,
  culminating in his assassination in the course of
  the February 26 Incident.

41
Effects on the World

• Japan
• This had a chilling effect on all civilian
  bureaucrats in the Japanese government. From
  1934, the military's dominance of the government
  continued to grow. Instead of reducing deficit
  spending, the government introduced price
  controls and rationing schemes that reduced, but
  did not eliminate inflation, which would remain a
  problem until the end of World War II.

42
Effects on the World

• Latin America
• Because of high levels of United States
  investment in Latin American economies, they were
  severely damaged by the Depression. Within the
  region, Chile, Bolivia and Peru were particularly
  badly affected.

43
Effects on the World

• Netherlands
• From roughly 1931 until 1937, the Netherlands
  suffered a deep and exceptionally long
  depression. This depression was partly caused by
  the after-effects of the Stock Market Crash of
  1929 in the United States, and partly by internal
  factors in the Netherlands. Government policy,
  especially the very late dropping of the Gold
  Standard, played a role in prolonging the
  depression. The Great Depression in the
  Netherlands led to some political instability and
  riots, and can be linked to the rise of the Dutch
  national-socialist party NSB. The depression in
  the Netherlands eased off somewhat at the end of
  1936, when the government finally dropped the
  Gold Standard, but real economic stability did
  not return until after World War II.46

44
Effects on the World

• South Africa
• As world trade slumped, demand for South African
  agricultural and mineral exports fell
  drastically. The Carnegie Commission on Poor
  Whites had concluded in 1931 that nearly
  one-third of Afrikaners lived as paupers. It is
  believed that the social discomfort caused by the
  depression was a contributing factor in the 1933
  split between the "gesuiwerde" (purified) and
  "smelter" (fusionist) factions within the
  National Party and the National Party's
  subsequent fusion with the South African
  Party.49

45
Effects on the World

• Soviet Union
• Having removed itself from the capitalist world
  system both by choice and as a result of efforts
  of the capitalist powers to isolate it, the Great
  Depression had little effect on the Soviet Union.
  A Soviet trade agency in New York advertised
  6,000 positions and received more than 100,000
  applications.50 This was a period of industrial
  expansion for the USSR as it recovered from
  revolution and civil war, and its apparent
  immunity to the Great Depression seemed to
  validate the theory of Marxism and contributed to
  Socialist and Communist agitation in affected
  nations. This in turn increased fears of
  Communist revolution in the West, strengthening
  support for anti-Communists, both moderate and
  extreme. Unlike the previous similar famine in
  Russia, information about the Soviet famine of
  19321933 was suppressed by the Soviet
  authorities until perestroika

46
Effects on the World

• Soviet Union
• In 1933 workers' real earnings sank to about
  one-tenth of the 1926 level.51 Common and
  political prisoners in labor camps were forced to
  do unpaid labor, and communists and Komsomol
  members were frequently "mobilized" for various
  construction projects.

47
Effects on the World

• United Kingdom
• The effects on the industrial areas of Britain
  were immediate and devastating, as demand for
  British products collapsed. By the end of 1930
  unemployment had more than doubled from 1 million
  to 2.5 million (20 of the insured workforce),
  and exports had fallen in value by 50. In 1933,
  30 of Glaswegians were unemployed due to the
  severe decline in heavy industry. In some towns
  and cities in the north east, unemployment
  reached as high as 70 as ship production fell
  90.52

48
Effects on the World

• United Kingdom
• The National Hunger March of SeptemberOctober
  1932 was the largest53 of a series of hunger
  marches in Britain in the 1920s and 1930s. About
  200,000 unemployed men were sent to the work
  camps, which continued in operation until 1939.

49
FDR Brings About Change

• Where Hoover stood no chance of losing in 1928,
  in 1932 there wasnt a chance of him winning
• In July of 32 the Democrats nominated Franklin
  D. Roosevelt at their convention in Chicago

50

• In 1910, Roosevelt ran (and won) for the New York
  State Senate from Dutchess County, NY which had
  not elected a Democrat since 1884.
• He was appointed Assistant Secretary of the Navy
  by Wilson in 1913.

• In 1920 Democrats chose Roosevelt as the
  candidate for Vice President on the ticket headed
  by Governor James M. Cox of Ohio, but the
  Cox-Roosevelt ticket was heavily defeated by
  Harding
• Roosevelt then retired to a New York legal
  practice, but few doubted that he would soon run
  for public office again.

51
Governor Roosevelt

• He would later run and win the governorship of
  New York and served in that run until he ran for
  President

52
Gaining The Nomination

• FDR was relatively new to national politics
  especially compared to John Cactus Jack Garner
  and Al Yellow Dog Smith who were originally in
  the forefront of the nomination race

53

• Irish Bootlegger Joseph Kennedy

• Al Smith had the city bosses, but Roosevelt had
  NYs Democrats .
• Roosevelt built his own coalition with personal
  allies like Joseph P. Kennedy
• After Garner switched to FDR, he was given the
  vice presidential nomination.
• With Garners support FDR had the nomination

54

• FDR was from a wealthy family, with an Ivy League
  (Yale) education.
• Along with the politically savvy Franklin came
  his extremely smart wife Eleanor

55
The Election

• Roosevelt
• Democrat
• New York
• Rm- John Nance Garner
• Electoral vote 472
• States carried 42
• Popular vote 22,821,277

• Hoover
• Republican
• California
• Charles Curtis
• 59
• 6
• 15,761,254

56
The New Deal

• After winning, FDR pledged a New Deal to combat
  the depression- New Deal being a new take on TRs
  Square Deal
• FDR formed his brain trust cabinet with a group
  of highly educated, and specialized men

57
FDR the New Deal

• New Deal turns out to be a day to day operation
  to see what will work
• The 3Rs
• Recovery industry agriculture
• Relief put back to work
• Reform make sure a depression does not happen
  again
• 1932 Election changed the way America will view
  the responsibilities of Federal Government
•  
• The 1st 100 days goes quickly to work pushing
  programs

58
The First 100 Days

• Within the first 100 days of FDRs presidency he
  pushed through Congress 15 bills which was a
  record pass
• Relief, Recovery, Reform or Three Rs were
  FDRs main concerns

59
FDRS IMPACT
Deficit spending paying out more than you take in
60
Early Acts and Work

• Emergency Banking Act 4 days bank holiday-all
  banks closed. Govt. will inspect banks only those
  that are stable will reopen
•  
• Fireside Chats talked with Americans about
  banks. Banks reopen 1st time since 1929 more
  deposits than withdrawals
•  
• Glass-Steagall Banking Act est. FDIC insures
  money
•  

61
Creating Jobs (Public works- govt. funded
projects)

•  
• Civil Works Administration CWA 2.5 million men
  employed in about 1 month build roads, schools,
  parks, etc
• Civilian Conservation Corps (CCC) young
  unmarried men sent to work plant trees, clean
  beaches, build parks earn 25-50 a month.
• NIRA National Industrial Recovery Act
  Established NRA National Recovery
  Administration--- focused on the economy

62
Creating Jobs (Public works- govt. funded
projects)

•  Federal government regulates wages (min wage)
• Controls production
• Business not happy No recovery allowed too
  rigid did not work well
• Agricultural Adjustment Administration (AAA)
  designed to help farmers
• Gave government subsidies or financial assistance
• Also paid farmers to not grow crops
• Tennessee Valley Authority (TVA) FDR focused
  help on One of Americans least modernized regions
  will provide cheap electric (hydro) power, flood
  control, recreation areas

63
THE TVA

• The TVA was one of FDRs first administrations
  and had two main goals
• 1) To prevent and control flooding in the
  Tennessee River Valley
• 2) To hydroelectric up the whole dern
  south-Ulysses Everett McGill

64
The Whole Dam System
65
Other New Deal Programs

• The Federal Deposit Insurance Corporation-
  insured bank deposits up to 5,000
• The National Recovery Administration- established
  a minimum wage and minimum prices for goods
• The Public Works Administration- built bridges
  and highways also very similar to
• The Civilian Conservation Corps- which dealt with
  forestry issues and fought forest fires

66
Too Much OR Too Little

• Alfred E. Smith, like many Republicans felt as if
  the New Deal made the government, and Democrats
  too powerful

• Francis Townsend, along with many radical
  Democrats felt that the New Deal was far too
  little, and that more should be done
• Townsend purposed a pension plan funded by a
  national sales tax

67
Smith and Townsend
68
The New Deal Gets Hit From All Over

• "The great betrayer and liar, Franklin D.
  Roosevelt, who promised to drive the money
  changers from the temple, had succeeded only in
  driving the farmers from their homesteads and the
  citizens from their homes in the cities. . . I
  ask you to purge the man who claims to be a
  Democrat, from the Democratic Party, and I mean
  Franklin Double-Crossing Roosevelt." Father
  Charles Coughlin

69
Long and Coughlin
70
Huey P. Long and FDR

• Long and FDR clashed over just about everything.
• FDR tried to use Long for popularity in the
  South, but Long had bigger intentions
• Neither of the two gained much in the end, but
  Long was one of the few people FDR couldnt
  control completely

71
The Brain Trust

• FDR did not work alone his hardworking cabinet
  and advisors became known as THE BRAIN TRUST
• 1st president to appoint women to cabinet Frances
  Perkins.
• Also hires African Americans
• Eleanor very active (protested Jim Crow)
• All these efforts did not make a big impact
  America was still struggling.

72
The Second New Deal 1935

• Many conservatives disagreed with FDR either on
  the fact of the power in the New Deals or the
  costs of them
• period of bolder legislation will include more
  social welfare, stricter controls over business,
  stronger support for unions, more taxes for rich

73

• The Second New Deal addressed the same problems
  that the first had, but was somewhat watered down
  to please the Republicans and those who had
  protested the first New Deal
• Most of the administrations of the first New Deal
  survived
• If they did not they were reworked and renamed.

74
JOBS

• WPA Works Progress Administration designed to put
  millions to work quickly- much like CWA will
  employ about 8 million public works cultural
  activities musicians, artist, historians. By 1941
  40 of unemployed now w/ WPA
• --- earned reputation of being involved in making
  work projects We Pittle Around
•  
• 1930s only 10 of people in rural areas had
  electricity

75
JOBS

• Rural Electrification Administration (REA)- govt.
  makes loans to get electricity means appliances
  benefits manufacturing
•  
• Wagner Act Legalized union practices,
  collective bargaining and closed shops
•  
• Fair Labor Standards banned child labor
  established minimum wage had been attempted under
  NIRA but declared unconstitutional this time it
  stood.
• Social Security Act old age pensions for
  workers, unemployment insurance, aid for
  dependent children, blind disabled
• FDR Reelected in 1936

76
Critics of the New Deal

•  
• Women and minorities
• NRA codes allowed womens wages to be lower
• Jobs were given to men first
• African Americans not offered jobs at the
  professional level
• Did nothing to end discrimination

77
Critics of the New Deal

• Republicans the New Deal does too much
• NIRA declared to be unconstitutional along with
  other programs
• Progressives Socialist (the political left)
  (Upton Sinclair EPIC end POV. In California
  Socialism)

78
Critics of the New Deal

• Huey Long. Gov LA, US Senator SOW share our
  wealth
• All American Families 500.00 dollars old age
  pensions
• 
  Home
• 
  Free Education
• 
  2,500 yr. income
• Paid for by extremely high taxes on wealthy
• Killed by son of a rich man
• Modern critics--- responsible for Big government,
  heavy taxes

79
Court Packing Scheme

• FDR frustrated by Supreme Court (unconstitutional
  NIRA, AAA) So he tried to pack the court
• FDR ask Congress for 6 new Supreme Court judges
  Add a justice for each one over 70 pack w/ people
  that will support his programs
• FDR would control Supreme Court--- attack on
  checks and balances---- aroused more opposition
  than anything FDR tried to do. (only major
  political defeat)

80
The Second New Deal

• The Social Security Act- was an attempt to limit
  what were seen as dangers including old age
  poverty, unemployment, and the burdens of widows
  and fatherless children
• Work Projects Administration- was the largest New
  Deal agency, employing millions of people and
  affecting most rural and western mountain
  populations.

• Banking Act of 1935- finalized the creation of
  the FDIC and made insurance for bank deposits
  permanent created a board to regulate the
  nations money supply and interest rates on loans
  
• Fair Labor Standards Act- Banned child labor,
  established a minimum hourly wages, and set the
  workweek at 44 hours

81
The Social Security Act In Some Depth

• The act had many flaws
• Many domestic and farm workers were left out of
  the act
• This largely effected African Americans and women
  who primarily held such jobs.
• That being said the first recipient was Ida May
  Fuller

82
Fair Labor Standards Act The Wagner-In Some
Depth

• The Fair Labor Standards act set a minimum wage
  at 25 cents per hour
• 44 hours was the maximum allowed in a work week

• The Wagner Acts official name was the National
  Labor Relations Act
• It meant that labor unions could officially
  bargain for better pay and wages
• Finally it created the National Labor Relations
  Board to handle workers complaints

83
Labor Unions In The Depression

• Labor Unions increased in membership and thus
  power through the 1930s
• FDRs pro-union policies were meant to raise the
  wages and standard of living for workers
• Those higher wages would then be turned back into
  the economy
• Roosevelt felt that a drop in union membership
  would have an adverse effect on the economy

84
John L. Lewis The CIO

• John L. Lewis was then the president of the
  United Mine Workers Union
• The UMW and other unions had grown tired of the
  AFL and split off to form the Congress of
  Industrial Organizations (CIO)

85
The CIO

• The CIO was typically made up of lower paid and
  ethnic workers
• In Dec of 1938 members of the UAW (a CIO
  spin-off) staged a sit-down strike at a GM plant
  in Flint, Michigan
• The strike lasted 44 days but ended when GM
  recognized the UAW and their demands

86
Holes In The New Deal

• In 1935 the Supreme Court began looking at the
  New Deal from a Constitutional standpoint
• In the case of Schechter Poultry v. United States
  the SC unanimously ruled that the President had
  no power in regulating interstate commerce and
  that the NIRA was unconstitutional

• Shortly after this, the SC ruled parts of the
  Agricultural Adjustment Act unconstitutional
• Roosevelt responded by saying that the court had
  set the country back to horse and buggy days
• The work that FDR had done is his first 100 days
  was being erased

87
Court Packing

• FDR, addressing Congress, unveiled a plan that
  would weaken the seated justices of the SC
• His plan proposed adding as many as six new
  justices to the already sitting nine
• This was based on FDRs feeling that those
  sitting on the bench were getting old and were
  overworked

88
Critics Catch On To FDRs Plan

• Many recognized FDRs plan and knew that these
  new justices would most likely be FDR supporters
  that would favor the New Deal
• They criticized FDR of trying to pack the court
  with New Dealers

89

• FDR might have convinced Congress to make the
  move to nine justices, but the court ruled in
  favor of the New Deal on several consecutive
  votes
• Two of these upheld the Wagner Act

• On two of the cases, Justice Owen Roberts
  provided the deciding vote
• Many called Roberts voted were switched in time
  to save nine
• Shortly after these votes Judge Willis Van
  Devanter left the court because he felt the court
  was not acting appropriately
• This allowed FDR to appoint a New Dealer to the
  court and give him the power he needed

90
Switch In Time To Save Nine Van Devanter
91
Court Packing Cartoons
92
What Is The Effect Of All This?

• After the New Deal, the government would play an
  ever increasing role in the lives of the American
  citizen
• Many New Deal administrations/acts are still
  around today (FDIC, Social Security, Headstart,
  Welfare)
• Besides the lasting effects, the New Deal had an
  enormously positive effect on the people of the
  Depression

93
Changes Brought About By FDR

• One social change is the role of the First Lady
• Until Eleanor, the First Lady was seen and rarely
  heard
• After Eleanor, First Women were often put in the
  forefront

94

• On a larger political scale, FDR made the
  Democrats what they are today.
• Until this point, for the most part, the
  political parties were reversed
• FDRs expanding the role of the government will
  continue to this day

• FDR had also been hugely popular in the then
  Democratically Solid South
• Even though he pushed for civil rights, many
  Southerners saw the New Deal as a saving grace
  during the Depression, and FDR as the man that
  brought it

95
The First New Deal
Hundred Days- Time between March 9 and June 16,
1933 when Congress passed 15 major acts to meet
economic crisis.
96
The Second New Deal
97
Effects of the New Deal

• National debt 1933 21 billion dollars 1940 43
  billion dollars
• Union Membership 1933 3 million people 1941
  10.5 million people
• Many public work projects still exist
• Fed agencies TVA,FDIC, Social Security

98
Two Main Things To Remember

• Many people looked to the arts/movies/radio for
  an escape from their lives during the Depression
• Remember the number from the 1920s
• 60 to 100 million a week in the 1920s

• The U.S government saw this and went to work
  putting together projects and legislation that
  kept many artists in work
• In addition it allowed the government to regulate
  what was seen and pass the word along

99
Film

• Most of the movies produced were Good v. Evil
  types where good always wins
• Think about Wizard of Oz- Dorothy gets the Wicked
  Witch of the West

100
Commentary On Society

• In films like G-Men and Mr. Smith Goes to
  Washington the American ideal of government
  winning over greed and corruption were with the
  government and audiences alike because the main
  characters fought greed and corruption

101
Radio

• The likes of Bob Hope, Studs Terkel, and Jack
  Benny all got their starts in radio during the
  1930s
• Radio programs of the 30s were much like the
  soap operas of today

102
Monopoly

• Monopoly could not have been created at a better
  time in history.
• The most popular aspect of it was the fact that
  you could own property in the game, even if you
  could not in real life
• Many families, who could not afford a full game
  set, would improvise and create their own game
  pieces or rules

103
The New Deal And The Arts

• Noticing that many artists and writers faced hard
  times by nature and were facing even harder time
  with the Depression, WPA director Harry Hopkins
  established the Federal Arts Project

104
FAP

• The project commissioned artists and writers to
  produce anything from folk history books to
  murals and canning instructions to Broadway plays
  
• Photographers like Dorothea Lange and Ansel Adams
  were hired by the Roosevelt administration to
  photograph the plight of those living in the
  Depression

105
Literature of The Depression

• Weve all had to or are going to have to read
  GRAPES OF WRATH which was written during the
  Depression about migrant workers going to
  California, but the novel was not the only form
  of literature that became popular in the
  Depression

106
The Comic Book

• Comic Books became hugely popular during the
  1930s
• Dick Tracey, Batman, and Superman all appeared
  for the first time during the Depression
• These comics would eventually move to radio, and
  then to motion pictures but are still in print

107
Reflect Back Written Assignment

• Oct 29,1929 Stock Crash, Fears, Rumors, what to
  do reflect back
• Dec. 24, 1931 include life during Depression
• Nov 8, 1933 A New Deal