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The Great Depression and The New Deal. Causes of the Great Depression. Problems in Industry. Consumer Spending. Problems in Farming. The Stock Market. Distribution of Wealth.

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causes of the great depression
Causes of the Great Depression

Problems in Industry

Consumer Spending

Problems in Farming

The Stock Market

Distribution of Wealth

slide3

The Great Depression lasted from October 1929 until the economic recovery of the 1940s. On October 29, Black Tuesday, the stock market crashed, and continued to fall throughout the coming weeks. As a result, the United States and the world were thrown into a decade of poverty and unemployment.

slide4

The depression affected all sectors of the economy.

  • Farm owners and agricultural workers suffered from falling crop prices.

“Sharecropper’s Children”

Dorothea Lange

slide5

Businesses failed from a lack of investment support and a decline in the ability of the masses to afford their products.

slide6

Banks closed their doors as the nation's citizens hoarded their money and defaulted on loan payments.

slide8

Herbert Hoover was President at the onset of the depression. He believed in recovery, even in the face of worsening conditions.

slide10

The situation did not improve, and Hoover established a program to build the Boulder Dam.

But it was too little too late.

http://www.sunsetcities.com/hoover-dam.html

slide13

FDR quickly shifted from a policy of non-intervention to one of government regulation and relief.

During the first hundred days of his Presidency, FDR and his highly trusted advisors, known as the Brain Trust created the New Deal.

slide14

To restore public confidence in the government FDR introduced his “fireside chats.” These were radio talks where the President spoke directly to the public.

slide15

Three Goals of the

New Deal

1. Relief for the Needy

2. Economic Recovery

3.Financial Reform

slide16

Reforming Banking and Finance

One of the first acts was The Emergency Banking Relief Act.

1.What was the purpose of this act?

2.What was the “Bank Holiday”?

slide17

Reforming Banking and Finance

The Glass-Steagall Banking Act 1933 was one of the New Deal Reforms.

3.What was the purpose of this act?

4.What is FDIC?

slide18

Reforming Banking and Finance

The Federal Securities Act was another act passed in the early days of FDR’s administration.

5. Explain this program and how it still affects the stock market today?

slide19

By using implied power to expand the powers of the executive branch, FDR created a number of agencies to aid agriculture, business, and the unemployed.

Art. I Section 8 Clause 18

The “necessary and proper clause”

http://www.nisk.k12.ny.us/fdr/index.html

alphabet soup
Alphabet Soup !

Numerous New Deal programs

were created. Most were known

by letters instead of by their

official names.

Many of these agencies were

designed to provide employment.

slide21

AAA

Agriculture Adjustment Act 1938

6.What was the purpose of this act ?

7.Was it successful, explain?

8.Why did some of AAA policies upset many Americans?

slide22

PWA

Public Works Administration

9.What was the purpose of this act ?

10.Give examples of the types of projects completed by PWA workers.

slide23

CWA

Civil Works Administration

11.Why was this program established? Give examples of construction completed by CWA.

12. What did its critics say about CWA?

slide24

CCC

Civilian Conservation Corps

13.Explain what this program provided.

slide25

CCC Camp at DeSoto State Park, Alabama

Talladega National Forest was the site of CCC work camps.

CCC workers at

Fort Payne, AL

slide26

FERA

Federal Emergency Relief Administration

14.What was the purpose of FERA?

15.How were the funds used?

slide27

NIRA

National Industrial Recovery Act 1933

16.What was the purpose of this act ?

17. What agency did NIRA establish?

18.What were some of the regulations established by this agency?

slide28

HOLC

FHA

Home Owners Loan Corporation 1933

Federal Housing Administration 1934

19.Why were these programs established?

20. Which one still exists today?

slide29

TVA

Tennessee Valley Authority 1933

21.How was this program supposed to help people? Give examples.

22.Does this program still exist today? If so, what benefits does it provide?

slide30

In 1935 a number of Supreme Court rulings effectively dismantled the primary mechanisms of the New Deal.

The NIRA was ruled unconstitutional on the grounds that it gave the President and the federal government too much power.

slide31

In 1936 the AAA was struck down along with nine other New Deal laws.

Reelected in 1936, FDR called for a plan to increase the number of Justices on the Supreme Court from 9 to15. He could then appoint Justices who would support his programs.

slide32

“The Court Packing Scheme”

http://www.nisk.k12.ny.us/fdr/index.html

slide35

FDR’s actions were viewed as an attempt to over ride the separation of powers established by the Constitution.

http://www.nisk.k12.ny.us/fdr/index.html

slide36

The Critics of the New Deal

FDR and Congress had designed programs that benefited millions of Americans, but there were many who criticized the New Deal.

slide37

REA

Rural Electrification 1935

23.What was the purpose of this program?

http://www.ou.edu/special/albertctr/archives/gdweb.htm#water

slide38

The 2nd One Hundred Days 1935- 1938

Gaining a public mandate with the Democratic successes in the 1934 midterm elections in the House and the Senate, FDR set forth the Second New Deal in 1935.

slide39

Steps were taken in attempts to solve the unemployment problem and stimulate economic recovery.

The legislation passed during this period would be the framework of the New Deal throughout the remainder of the decade.

slide40

NYA

National Youth Administration

The NYA provided work centers, vocational training, recreational jobs and workshops for everything from music to journalism.

slide41

FSA

Farm Securities Administration

Resettlement Admin. (later Farm Security Admin.) lent funds to small farmers to buy land instead of renting or sharecropping

Homeless family tenant farmers

slide42

Social Securities Act 1935

What was the purpose of this act ? Was it successful, was it expanded, Did it have long lasting effects?

Give explanations and examples.

slide43

Fair Labor Standards Act

What was the purpose of this act ?

Was it successful, explain?

slide44

National Labor Relations Act

What was the purpose of this act ?

Was it successful, explain?

slide45

WPA

Works Progress Administration

  • Headed by Harry Hopkins Constructed roads, schools, hospitals, libraries, airports, etc.
  • Between 1935 and 1943 over 8 million people were employed, building 850 airports, 110,000 public buildings including schools hospitals, and libraries
  • Employed teachers, writers, artists, actors, and musicians:
slide46

WPA

provided jobs for many people, especially artists by commissioning them to create posters promoting events and informing the public of important issues.

slide48

FDR did get the Supreme Court majority that he wanted. One Justice changed his views and one retired. During his terms in office he appointed nine Justices. Only Washington appointed more.

slide49

The economy showed signs of recovery but was set back by the 1937 recession. Few additional measures were put in place to cope with the depression.

Economic recovery took place under the war economy of the early 1940s, with levels of poverty and unemployment returning to pre-depression levels.

slide50

The Depression brought marked changes to the political and entertainment culture of the United States. A culture of dissent and disillusionment produced ample political outlets, such as Huey Long's “Share Our Wealth” program. Popular culture was affected as well.

slide51

Radio shows, most were comedies and soap operas, took people's minds off their troubles.

Hollywood also flourished, as people flocked to the theatres to escape their everyday world of poverty and despair.

The Golden Age of Radio.

Brace Beemer, Lone Ranger, giving broadcast; McFredden Publication, photograph by R. E. Smallman.

http://www.lib.umd.edu/LAB/

slide52

In contrast, intellectuals and authors delivered a sharp dose of realism.

Many were directly critical of capitalism and supported political alternatives, such as socialism or communism.

slide53

The Great Depression produced a distinct political response that defined the Democratic Party throughout the twentieth century; some New Deal policies, such as Social Security, are now considered bedrock rights of American citizens.

slide54

Under FDR, a new conception of the federal government emerged, based on the belief in economic regulation and social welfare.

WPA Poster

New Deal aids farmers

slide55

Resources

http://newdeal.feri.org/

http://newdeal.feri.org/library/#2

http://www.davison.k12.mi.us/DHS/staff/Hewitt/webquests/newdeal/NewDealquest.htm

http://www.davison.k12.mi.us/DHS/staff/Hewitt/hewitt3.htm

http://www.ihffilm.com/ihf/hueylong.html

http://history1900s.about.com/library/photos/blygd42.htm