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The Great Depression and the New Deal

A look at the causes of the Great Depression, its social effects and how FDR and the New Deal helped America recover

Shawnn Row

on 29 January 2014

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Transcript of The Great Depression and the New Deal

October 29, 1929
The Beginning of the End
Time for Change
FDR and the New Deal
Leaving the 1930's
- Leading to the Great Depression
- Black Tuesday

Leading to the Great Depression
- President in 1928: Herbert Hoover (Republican)
Continued Laissez-Faire and encouraging in the stock market
" Regard the present with satisfaction and anticipate the future with optimism....poverty will be banished from this nation." - Calvin Coolidge
Economy when Hoover takes office
- 1925 stock market value at $27 billion
1929 stock market value at $87 billion
- Unemployment less than 4%
- "Everybody Ought to Be Rich"
- DOW Jones hits 381 (highest ever)
False Signs in the Economy
Social Level Difference
The Devil Card
Stock Speculation
- Rich got richer 0.1% of pop. had 30% of
country's savings
- credit card made people buy things they could not actually afford
- people invest life savings on stocks
- Buying on Margin: buy a stock for small % and borrow the rest from a broker to purchase it
- goods not being bought as fast as assembly lines make them
- Farmers: buying land and expensive equipment during WWI, but could not sell for profit
- Laborers: long hours and low wages everywhere
Black Tuesday
- No one buying stocks => 16.4 million shares sold in one day
- GNP Drops => 1929 it was $103 bill, 1933 it was $56 bill
- Banks => thousands of banks close which means people lost
their money
- Global Market => U.S. falls and everybody followed suit
=> no one can pay debt back to U.S.
Big Picture
- millions lose savings
- factories shut down or cut back on production, leaving millions jobless
- people forced to live in poverty in a short period of time
Sound like anything today?
Social Effects of the Great Depression
Signs of Hope
Dust Bowl
Family Life
- Towns of cardboard and scraps in major U.S. cities
- Name mocks the President of the U.S. (Hoover)
- Area of Great Plains of harsh drought and dust storms
- Forced thousands of farmers to lose everything
- Hundreds of thousands migrate west to California
- Families move in with each other
- Jobless husbands abandon families
- Married women fired if husbands have jobs
- Minorities are victims of job loss as well
Some Stats
- Divorce rates actually slowed (too expensive)
- Black unemployment to 56%
- Hispanics and Asian often deported
21st Amendment
=> Repeals Prohibition in 1933
=> States can now tax alcohol,
giving them extra money for
U.S. Can Still Build Great Things
=> Empire State Building
=> Hoover Dam
Some Stats
- 440,000 leave Kansas
- 300,000 leave Oklahoma
- 350,000 settle in LA, San Fran, San Diego,
and other parts on the West Side
- Dust could settle over the East Coast
Some Stats
- St. Louis had one of the largest Hoovervilles. Had unofficial mayor, churches, etc.
- NYC Hooverville consisted of 15,000
- Often "razed" by government forces to break them down
- Hoover's Reaction
- 1932 Election

Hoover's Reaction to Great Depression
Hawley Smoot Tariff:
- Highest import tax in history
- Europe reacts by raising their
- Too expensive for everybody
- International trade suffers
Asks companies to voluntarily keep wages up
- Business leaders agree at first
- But by 1931, jobs and wages cut everywhere
Bonus Army Fiasco
- Soldiers from WWI wanted money owed to them by
the government
- House votes OK, but the Senate votes NO!
- Soldiers set up a Hooverville in Washington D.C.
- Driven out by force under General MacArthur
1932 Election
Democrat: Franklin Delano Roosevelt
Republican: Herbert Hoover
Role of Government
- The govt must get involved in all aspects of the economy
- Huge amounts of money need to be used for national programs that are started and controlled by the government
Role of Government
- The govt should let the depression solve itself
- Private donations will stimulate the economy
- Too much government power is wrong
- Laissez-Faire
FDR dominates the election by overwhelming support
- Campaign slogan: "Only thing we have to fear is
fear itself!"
- He had a strong and inspiring personality
Fun Facts of FDR
- FDR and his wife, Eleanor, were distant cousins
- FDR was struck with polio in 1920 and never walked again
- FDR Gets Started
- New Deal Programs
- Response to FDR

FDR Gets Started
First Few Days After Inauguration
Bonus Army returns to Washington
- FDR offers them campsites and treats them well
First Lady Eleanor Roosevelt
- Visits Bonus Army marches
- Redefines role of the First Lady
- Gets involved, travels the
country, speaks the message of
the New Deal
Fireside Chats
First 100 Days
Bank Holiday
- Weekly radio messages of positive
reinforcement by FDR
- March to June 1933, FDR proposes
new legislation for a quick recovery
- Closes banks for four days for inspection
- most banks re-open
and establish confidence
in banks again
FDR Creates New Government Agencies
Federal Emergency Relief Administration
Civilian Conservation Corps
National Recovery Act
Tennessee Valley Authority
National Labor Relations Board
Federal Deposit Insurance Corporation
Securities and Exchange Commission
Agricultural Adjustment Agency
Social Security
- give out money and create jobs
- provide jobs to young men to work on
conservation projects across America
- working with industries to create
fair industry practices and Codes
- specialized in creating jobs in poor areas
along the Tennessee River building dams,
hydroelectric power, flood control
- Worked with unions and collective
- protects money in banks.....up to $5,000
- watches the stock market
- helped farmers, often destroyed crops to
create a demand
- protects the old, disabled, and unemployed
Response to FDR's New Deal
- Election of 1936 => FDR destroys Alfred Landon
- Public has complete confidence in:
* most lopsided electoral votes ever*
1. FDR
2. The New Deal
3. Role of Government
- FDR Slips Up
- Critics of the New Deal
- New Deal Wrap Up

FDR Slips Up
Looks to put six more judges on the Supreme Court through a Bill
- FDR tries a
court packing scheme
Everyone rejects this idea because he is looking for too much power
Biggest mistake made by FDR
Must remove the bill....people begin to worry about his intentions
Still gets majority of judges on his side in a Constitutional way
Remains popular throughout the country
Critics of the New Deal
Women paid less than men....still
Segregation plagued the south
- blacks not offered jobs, especially off farms
- not given a change in other industries
Lynching Bills not passed in Congress
- common practice in South and
parts of the Midwest
The wealthy didn't like FDR because of the Wealth Tax on people making over 50K
American Liberty League

- said the New Deal limited individual
freedom in an "un-American way"
Socialism => people worried U.S. was
becoming a socialist state
New Deal Wrap-Up
Still economic problems as a recession continued and the national debt increased
Unions were growing stronger and gaining support
- collective bargaining
- sit-down strikes
Many government programs lasted and exist today
- Tennessee Valley Authority
- Social Security
U.S. will grow slowly, but WWII will completely unite the country and put the economy in full swing again


FDR vs. Obama
Things to know from the Dust Bowl
- Was caused by poor farming techniques:
lack of crop rotation and over farming
- Caused massive dust storms that removed
topsoil and led to no crops being produced
- Bad timing of a massive drought
- The migration of people out of the Dust Bowl
established the West Coast we know today
What does this mean?
- The Government plays an important aspect in our lives everyday
- This did not exist before FDR
- Today, we can see how the government helps, but also how it may not help
Full transcript