The Great Depression and The New Deal

1. The Great Depression and The New Deal • The Economy- trouble in paradise • The Crash of 1929 • Causes of the Depression • The Hoover Years • FDR and the New Deal • The First 100 Days

2. Inequality of the Wealth in the 1920s • Real wages increased 21%

3. Inequality of the Wealth in the 1920s • Real wages increased 21% • But corporate dividends went up 66%

4. Inequality of the Wealth in the 1920s • Real wages increased 21% • But corporate dividends went up 66% • Richest 5% of population increased its share of the wealth from 1/4 to 1/3

5. Inequality of the Wealth in the 1920s • Real wages increased 21% • But corporate dividends went up 66% • Richest 5% of population increased its share of the wealth from 1/4 to 1/3 • And the richest 1% controlled 20% of all income in the nation

6. Inequality of the Wealth in the 1920s • Real wages increased 21% • But corporate dividends went up 66% • Richest 5% of population increased its share of the wealth from 1/4 to 1/3 • And the richest 1% controlled 20% of all income in the nation • 16 million lived below poverty level of $2000

7. The Stock Market Crash

8. The Stock Market Crash • 1924- 100 • 1925- 181 • 1927- 245 • 1928- 331 • September 1929- peaked at 452 then started to fall • October 1929- ended up at 224

9. Herbert Hoover

10. Some Causes of the Great Depression

11. Some Causes of the Great Depression • Overproduction and underconsumption

12. Some Causes of the Great Depression • Overproduction and underconsumption • Inequality of wealth

13. Some Causes of the Great Depression • Overproduction and underconsumption • Inequality of wealth • Overextension of credit

14. Some Causes of the Great Depression • Overproduction and underconsumption • Inequality of wealth • Overextension of credit • The Smoot-Hawley Tariff

15. Some Causes of the Great Depression • Overproduction and underconsumption • Inequality of wealth • Overextension of credit • The Smoot-Hawley Tariff • A series of natural disasters- The Dust Bowl

16. Hoover’s approach to the Depression • Top down- give money to businesses and banks, to create jobs (trickle-down economics)

17. Roosevelt and the New Deal • The 100 Days • The National Recovery Act (NRA) • The Tennessee Valley Authority (TVA) • The Safety Net • Nine Old Men- The court-packing scheme • Keynes and Deficit Spending • The New Deal Reassessed

18. Franklin Delano Roosevelt

19. Depression Scenes

20. Food Lines

21. Hooverville

22. Migrant mother and family

23. The Three “R”s of the New Deal

24. The Three “R”s of the New Deal • Relief of Human suffering

25. The Three “R”s of the New Deal • Relief of Human suffering • Recovery of the Economy

26. The Three “R”s of the New Deal • Relief of Human suffering • Recovery of the Economy • Reform (to prevent it from happening again)

27. The New DealThe 100 days

28. The New DealThe 100 days • A Bank “Holiday” • Emergency Relief Banking Act- Created the FDIC

29. The New DealThe 100 days • A Bank “Holiday” • Emergency Relief Banking Act- Created the FDIC • Civilian Conservation Corps

30. The New DealThe 100 days • A Bank “Holiday” • Emergency Relief Banking Act- Created the FDIC • Civilian Conservation Corps • Federal Emergency Relief Act (FERA)

31. The New DealThe 100 days • A Bank “Holiday” • Emergency Relief Banking Act- Created the FDIC • Civilian Conservation Corps • Federal Emergency Relief Act (FERA) • Agricultural Adjustment Act (AAA)

32. The New DealThe 100 days • A Bank “Holiday” • Emergency Relief Banking Act- Created the FDIC • Civilian Conservation Corps • Federal Emergency Relief Act (FERA) • Agricultural Adjustment Act (AAA) • Home-owners Loan Corp. (HOLC)

33. The New DealThe 100 days • A Bank “Holiday” • Emergency Relief Banking Act- Created the FDIC • Civilian Conservation Corps • Federal Emergency Relief Act (FERA) • Agricultural Adjustment Act (AAA) • Home-owners Loan Corp. (HOLC) • Civil Works Agency (CWA)

34. National Recovery Act

35. National Recovery Act • Price fixing and codes of fair competition

36. National Recovery Act • Price fixing and codes of fair competition • Minimum wages and maximum hours

37. National Recovery Act • Price fixing and codes of fair competition • Minimum wages and maximum hours • Section 7a- Gave organized labor right to organize and bargain collectively

38. National Recovery Act • Price fixing and codes of fair competition • Minimum wages and maximum hours • Section 7a- Gave organized labor right to organize and bargain collectively • The Public Works Administration (PWA) spent $4 billion on 34,000 projects

39. The Tennessee Valley Authority

40. The Tennessee Valley Authority • Conservation

41. The Tennessee Valley Authority • Conservation • Govt. entered power-producing business

42. The Tennessee Valley Authority • Conservation • Govt. entered power-producing business • Served as a yardstick to see if private utilities were charging too much

43. The Tennessee Valley Authority • Conservation • Govt. entered power-producing business • Served as a yardstick to see if private utilities were charging too much • Produced Cheap Electricity

44. The Tennessee Valley Authority • Conservation • Govt. entered power-producing business • Served as a yardstick to see if private utilities were charging too much • Produced Cheap Electricity • Provided full employment for poor area

45. The Social Security Act of 1935

46. The Social Security Act of 1935 • Unemployment Insurance

47. The Social Security Act of 1935 • Unemployment Insurance • Plan for old-age pensions

48. The Social Security Act of 1935 • Unemployment Insurance • Plan for old-age pensions • Provisions made for disabled and dependents

49. John Meynard Keynes • British economist who advocated massive deficit spending by the government to jump start the economy (Keynsian Economics)

50. Criticism of the New Deal