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The Great Depression and the New Deal

The Great Depression and the New Deal. Organizing Principle .

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The Great Depression and the New Deal

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  1. The Great Depression and the New Deal

  2. Organizing Principle • As the traumatic experience of the Great Depression unfolded, Herbert Hoover did little to mend the broken economy. In 1932, America sought bold new leadership to heal the ailing nation. Franklin Delano Roosevelt, a charismatic, empathetic man rose to the challenge. He promised Americans a “new deal” at a time when political conservatives advocated weathering the storm. Though the New Deal was largely unsuccessful in restoring the economy on the whole, it did restore morale to the hopeless, and patched a hole in a sinking ship of state.

  3. The Growth of Federal Relief • Federal Emergency Relief Administration • Cash grants for bankrupt relief agencies • Civil Works Administration • Temporary work (4 million people) • Civilian Conservation Corps • Tree huggers • Home Owners’ Loan Corporation • Refinanced loans

  4. Outspoken Critics • Conservative opponents • American Liberty League—northeastern industrialists • Think measures violate respect for personal rights, property • Father Charles Coughlin • Wants guaranteed income, banks nationalized • Dr. Francis Townsend • Devises pension plan for elderly • Senator Huey Long • Share Our Wealth • Popular social program—5,000/family • Presidential hopeful

  5. Women and the New Deal • Frances Perkins—Secretary of Labor • First female in a cabinet post • Big hand in Social Security Act • Mary McLeod Bethune • National Youth Administration • Director of the Office of Minority Affairs • Black Cabinet • Social Sciences • Ruth Benedict • Margaret Mead • Literature • Pearl Buck—The Good Earth

  6. National Recovery Administration • National Industrial Recovery Act • Relaxed anti-trust provisions • Unionization (section 7a) • COLAs • Public Works Administration (PWA) • Industrial recovery and relief • Public buildings, highways, and parkways • Grand Coulee Dam • Failed—big business writing code • Supreme Court—Schechter • Government regulation

  7. Depression in Rural Areas • 400,000 farms foreclosed on • Tenant farmers • Dust Bowl • Exhaustion of soil • Droughts/windstorms hit • North Dakota to Texas • Many migrate west—The Grapes of Wrath

  8. Agricultural Adjustment Act (1933) • AAA goal • Raise prices by lowering supply • Subsidizing farmers • AAA actions • Destroyed crops initially • Mill tax • AAA oversights • Landed farmers win • Supreme Court—declares unconstitutional • Limiting production and processing tax • FDR restructures legislation during 2nd term • Soil Conservation and Domestic Allotment Act (1936) • Second AAA (1938)

  9. Regional Planning • Tennessee Valley Authority • Muscle Shoals • Public works—“costs” • Dam construction • Improved water transportation • Prevented flooding

  10. Housing and Social Security • Housing • Federal Housing Administration (FHA) • gives loans for mortgages, repairs • United States Housing Authority (USHA) • Low cost housing—deslumming the cities • Social Security (1935) • insurance for retirees 65 or older • unemployment compensation • aid to disabled, families with children

  11. Improving Labor Conditions • Wagner Act (1935) • Replaces NIRA - protects right to join unions, collective bargaining - prohibits unfair labor practices • Fair Labor Standards Act (1938) • Sets maximum hours (44 hrs/week) • Sets minimum wage (.25 to .40/hour) • Congress of Industrial Organizations • John L. Lewis • 4,000,000 million members

  12. Roosevelt Reelected • Elections of 1936 • FDR (D) v. Alfred Landon (R) • FDR—lambastes “economic royalists” • Landon—pins FDR as a radical • Franklin “Deficit” Roosevelt • Roosevelt wins 523-8 • Democrats sweep Upper and Lower House • Trends and notes • Republicans charge FDR with class warfare • Larger returns from African-Americans voting Democrat • First time labor unions support mainstream candidate

  13. Judicial Branch • The Supreme Court Reacts • Supreme Court strikes down NIRA, AAA as unconstitutional • FDR proposes “Court-packing bill” • Congress, press protest • Starting in 1937, justices retire; FDR appoints seven new ones (independent of court packing) • Largely unpopular—FDR seen as dictator

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