The Great Depression

1. The Great Depression The 1930’s

2. The Crash • Black Tuesday • Years of over speculation, deregulation leads to market crash • Boom market>increased speculation>great sell-off Oct ‘29 • America enters the Great Depression

4. Causes • Market crash – “playing the market”, buying on margin • Uneven income distribution & overproduction>>easy credit • Weak agricultural sector • Gov’t policies • Laissez Faire, dereg., high tariffs, • Global problems • Interdependence, European debt, Reparations, Tariffs

5. Effects • Bottoms out in ’32? • Full recovery took a decade • New Economic Theories • John Maynard Keynes • Drop in GDP, 50% drop in income, 20% bank failure rate, bank runs, 25-30% unemployed by ’32 • End to Republican dominance • Reemergence of union movement & radicalism

6. The Depression Worsens • Hoover’s Policies • Prosperity will return, part of the cycle • Relief should come from states and localities • Voluntary action • No strikes, no wage cuts, increase in private charities

7. Actions of Hoover • Hawley-Smoot Tariff 1930 – highest in history to protect American manufacturers • Tariff war • Debt Moratorium • Loan defaults • Domestic programs • Federal Farm Board • Hold surplus – too moderate to stabilize prices • Reconstruction Finance Corp • Loans to RRs, banks, insurance cos • Trickle down

8. Protest • The Bonus Army • Summer of ’32 • WWI vets march on Washington petitioning for army bonuses • Hoover sent Gen McArthur to break the camp • Tear gas, tanks, and the end of Hoover • Farmers rise up • Farm Holiday Association • Stop the crop ‘32 • Banded together to prevent evictions • Hoovervilles

12. FDR & the NEW DEAL • Franklin D. Roosevelt was elected in 1932 w/60% of pop vote • Calls for a new deal • Gained support of some socialists • Dem majorities in both Houses

15. New Deal • The 3 R’s • Relief, Recovery, Reform • The Brain Trust • Louis Howe • Professors & economists • The 1st Hundred Days • Bank Holiday • Closed until reorganized • Repeal of Prohibition • Fireside Chats

16. 1st Hundred • Relief • FERA (Federal Emergency Relief Administration) • PWA (Public Works) • CCC (Civilian Conservation Corps) • TVA (Tennessee Valley Authority) • Financial Recovery Programs • Emergency Banking Relief Act • FDIC (Federal Deposit Insurance Corp) • HOLC (Home Owners Loan Corp) • Farm Credit Administration

17. 1st Hundred • Industrial recovery program • NIRA (National Industrial Recovery Act) > NRA (National Recovery Administration) • Set wages, production levels • Unconstitutional (Schechter v U.S. 1935) • Farm production control program • AAA (Agr. Adjustment Admin) • Subsidies for non-production • Unconstitutional

18. alphabet NEW DEAL: ALPHABET AGENCIES RELIEF: Ease Suffering of the Needy FERA / 1933Federal Emergency Relief Act Distributed $500 million of direct aid to unemployed workers such as food, clothing and grants of money to cities.

19. alphabet NEW DEAL: ALPHABET AGENCIES RELIEF: Ease Suffering of the Needy PWA / 1933 to 1943 Public Works Administration Employed 8.5 million workers in construction and other jobs, but more importantly provided work in arts, theater, and literary projects.

20. alphabet NEW DEAL: ALPHABET AGENCIES RELIEF: Ease Suffering of the Needy • CCC / 1933 to 1942 • Civilian Conservation Corps • Sent 3 million young men to work camps to build bridges, replant forests and other conservation tasks. • Develop job skills and improve environment. • Removed surplus of workers from cities, provided healthy conditions for boys, provided money for families.

21. alphabet NEW DEAL: ALPHABET AGENCIES RELIEF: Ease Suffering of the Needy HOLC / 1933 Home Owners Loan Corporation Prevented mortgage foreclosures. US Govt. bought up mortgages and refinanced them so that homeowners could pay their mortgages.

22. alphabet NEW DEAL: ALPHABET AGENCIES • NIRA / 1933National Industrial Recovery Act • Called the National Recovery Act….. • Created NRA to enforce codes of fair competition and minimum wages.

23. alphabet NEW DEAL: ALPHABET AGENCIES TVA / 1933Tennessee Valley Authority Federal government built a series of dams to prevent flooding and sell electricity in the South.

24. alphabet NEW DEAL: ALPHABET AGENCIES REFORM: Prevent Another Depression SEC / 1934Securities and Exchange Commission Regulated stock market and restricted margin buying, and frauds.

25. alphabet NEW DEAL: ALPHABET AGENCIES REFORM: Prevent Another Depression FDIC / 1933Federal Deposit Insurance Corporation Glass-Steagall Act created federally insured bank deposits ($2500 per investor at first) to prevent bank failures.

26. The Dust Bowl • The Dust Bowl - farmers crops literally blown away or buried • OK, KS, CO • Okies head west but find few jobs (fruit picking, odd jobs) • Grapes of Wrath – John Steinbeck

32. Life During the Depression • Women – lower pay, more working, family strain • AfricanAmericans – hardest hit, excluded from relief programs, increase in lynchings, little support from FDR • Improvements – some relief provided, support from Eleanor, Fair Employment Practices Committee 1941(A.Phillip Randolph)

33. Continued • Mexican Americans – Discrimination in society & ND, increase in white migrant labor, some return to Mexico • N. Americans – John Collier (BIA) brought CCC to reservations, NA included in WPA • Indian Reorganization Act 1934 • Repealed Dawes, NA culture ok, no real NA control

34. 2nd New Deal • WPA (Work Progress) 1935 – Harry Hopkins, bridges, roads, pub buildings • Resettlement Admin – loans to small/sharecroppers, housing for migrants • Nation Labor Relations Act (Wagner) 1935 • REA (Rural Electrification) • Increased taxes on wealthy • Social Security Act 1935

35. alphabet NEW DEAL: ALPHABET AGENCIES REFORM: Prevent Another Depression Wagner Act / 1935 National Labor Relations Act Reaffirmed labor's right to unionize, prohibited unfair labor practices, and created the National Labor Relations Board.

36. alphabet NEW DEAL: ALPHABET AGENCIES REFORM: Prevent Another Depression • SSA / 1935Social Security Act It provided retirement pensions, unemployment insurance, aid to blind, deaf, disabled, and dependent children.

37. alphabet NEW DEAL: ALPHABET AGENCIES REFORM: Prevent Another Depression • SSA / 1935Social Security Act Response to critics (Dr.Townsend and Huey Long), it provided pensions, unemployment insurance, aid to blind, deaf, disabled, and dependent children.

38. Election of 1936 • Alf Landon – progressive Rep • Landslide win for FDR • New Deal Coalition 1930’s-60’s • Solid south, ethnic workers, African Americans (in northern cities), Midwest farmers, labor unions

39. Critics of The New Deal • Liberals – too much for business • Conservatives – socialism!!! • Demagogues – Father Coughlin (National Union for Social Justice) • Dr. Francis Townsend – the Townsend Plan > SS • Huey Long “Share the Wealth” • Assassinated will running for Pres

40. LEGACY OF NEW DEAL Criticisms of New Deal • US government and President too powerful • Violated laissez faire • Supreme Court declared NIRA and AAA unconstitutional • Critics: • Father Charles Coughlin • Dr. Francis Townsend • Huey Long • Deficit spending: Govt. spends $$$ to stimulate the economy and help people even if it means US Govt. goes into debt. • Welfare state----Created a population of Americans who relied on the US Govt. to live 100 days

41. LEGACY OF NEW DEAL Successes of New Deal AMERICANS IN 1939 WHO WANTED THE NEW DEAL TO CONTINUE WAS 55%….. 37% REGARDED IT AS A BAD INFLUENCE AND WANTED A NEW PRESIDENT…………... • Stimulated the economy • Put people back to work…. • Improved morale and self-confidence of the people • US Govt’s. role changes and became directly involved in helping people • WWII ended the Great Depression not FDR’s New Deal 100 days

42. DR. FRANCIS TOWNSEND • He wanted the government to help older citizens. • Retired California Physician. • Suggested a $200 per month pension for people over 60.(This is socialism) • Open jobs for the younger unemployed. • Spending all $200 would also be required to boost economic demand. • Townsend Clubs created all over the nation. • Influenced FDR’s creation of Social Security

43. alphabet NEW DEAL: ALPHABET AGENCIES Part of FDR’s New Deal……Agencies created by the US Govt. to bring about the 3 R’s……Relief, Recovery, and Reform.