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The Great Depression and The New Deal

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Jodie LaFrance

on 31 March 2015

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Transcript of The Great Depression and The New Deal

The Great Depression
and
New Deal

BONUS MARCHERS CLASH WITH SOLDIERS
Dust buried cars and wagons in South Dakota in 1936
Storm approaching Elkhart, Kansas in 1937
Dust storm approaching Stratford, Texas - 1934
MacArthur’s 12th infantry gassed more than 1,000 marchers, including an 11-month old baby, who died
Two vets were shot and scores injured
Americans outraged, Hoover’s image suffered
AMERICANS SHOCKED AT TREATMENT OF WWI VETS
HOOVER’S SUCCESSFUL DAM PROJECT
EFFECTS OF DEPRESSION
Photographer Dorothea Lange captures a family headed west to escape the dust storms
over production of goods
CAUSES OF THE GREAT DEPRESSION
GNP DROPS, UNEMPLOYMENT SOARS
By mid-November, investors had lost about $30 billion
THE STOCK MARKET
Most people did not have the money to buy the flood of goods factories produced
CONSUMER SPENDING DOWN
Spring 1932 17,000 WWI vets meet in Washington to support Patman Bonus Bill
authorized Congress to pay a bonus to WWI vets immediately
bonus was scheduled to be paid in 1945 --- The Army vets wanted it NOW
BONUS ARMY
HOOVER TAKES ACTION:
TOO LITTLE TOO LATE

HOOVER’S PHILOSOPHY
Between 1929-1932 almost ½ million farmers lost their land
Bank run 1929, Los Angeles
FINANCIAL COLLAPSE
People who had bought on margin (credit) were stuck with huge debts
THE 1929 CRASH
New York Stock Exchange
STOCK PRICES RISE THROUGH THE 1920s
HOOVER WINS 1928 ELECTION
Photo by Dorothea Lange
More than 70% of American families earned less than $2500 per year
GAP BETWEEN RICH & POOR widened
As the 1920s advanced, serious problems threatened the economy while
Important industries struggled, including:


Agriculture
Railroads
Textiles
Steel
Mining
Lumber
Automobiles
Housing
Consumer goods
THE NATION’S SICK ECONOMY
HOBOES TRAVEL AMERICA
THE DUST BOWL
SOUP KITCHENS
SECTION 2: HARDSHIPS DURING DEPRESSION
Alabama family, 1938 Photo by Walter Evans
THE GREAT DEPRESSION
The Stock Market’s bubble was about to break
SEEDS OF TROUBLE
Photo by Dorothea Lange
No industry suffered as much as agriculture

During World War I European demand for American crops soared

After the war demand plummeted

Farmers increased production sending prices further downward
FARMERS STRUGGLE
Photos by photographer Dorothea Lange
THE GREAT DEPRESSION BEGINS
On June 17, 1932 the Senate voted down the Patman Bill
BONUS ARMY TURNED DOWN
SECTION 3: HOOVER STRUGGLES WITH THE DEPRESSION
Unemployment highest MINORITIES
HAWLEY-SMOOT TARIFF
Thomas Hart Benton, Lord, Heal the Child (1934)
Thomas Hart Benton, Mine Strike
Edward Hopper, Railroad Sunset (1929)
Edward Hopper’s Nighthawks (1942)
Grant Wood’s Fall Plowing, 1931
ROOSEVELT (RED) VS. LANDON (BLUE) 1936 ELECTION
Arkansas Tenant Farmers,1936
WINSTON CHURCHILL “Any man who is under 30, and is not a liberal, has no heart; and any man who is over 30, and is not a conservative, has no brains.”
TVA
Over time, opinions about the merits of the New Deal and FDR have ranged from harsh criticism to high praise – usually along partisan lines
Conservatives felt FDR made government too large and too powerful
Liberals countered that FDR socialized the economy because Americans needed help
SECTION 5: THE IMPACT OF THE NEW DEAL
Nicolai Cikovsky, On the East River (c. 1934)
Mabel Dwight, In the Crowd (1931)
THE SECOND NEW DEAL
FDR appoints 7 new judges to the Supreme Court
FDR REGAINS CONTROL OVER SUPREME COURT
Federal Securities Act: stock info accurate and truthful

Agricultural Adjustment Act: (AAA) Raised crop prices by lowering production

Tennessee Valley Authority: (TVA) created ambitious dam projects
MORE 100 DAYS ACTIVITY
AMERICANS GAIN CONFIDENCE IN BANKS
AMERICA GETS BACK TO WORK
THE NEW DEAL
FDIC – banking insurance critical to sound economy
Deficit spending has became a normal feature of government
Social Security is a key legacy of the New Deal in that the Feds have assumed a greater responsibility for the social welfare of citizens since 1935
LEGACIES OF THE NEW DEAL
American writer John Steinbeck received assistance from the Federal Writers’ Project
He published his most famous book, Grapes of Wrath (1939), as part of the program
JOHN STEINBECK RECEIVES ACCLAIM
The Federal Writers’ Project (branch of WPA) paid writers to write
Richard Wright’s acclaimed Native Son was written for the project
WRITERS DEPICT AMERICAN LIFE
WPA Art – “Democracy . . .a Challenge” – artist, date unknown
The Federal Art Project (branch of the WPA) paid artists a living wage to produce art
Projects included murals, posters and books
Much of the art, music and literature was sober and serious
ART DURING THE GREAT DEPRESSION
Orson Wells created a radio special called War of the Worlds
It was an epic drama about aliens landing in America
Unfortunately, many thought it was a news broadcast and panicked
FAMOUS RADIO MOMENTS
FDR communicated to Americans via radio
His frequent “Fireside Chats” kept Americans abreast of the government’s efforts during the Depression
ROOSEVELT’S FIRESIDE CHATS
    Movies provided an escape from the hardships of the Great Depression
MOVIES:
By the late 1930s, 65% of Americans were attending the movies at least once per week at one of the nation’s 15,000 movie theaters
Comedies, lavish musicals, love stories and gangster films dominated the movie industry
SECTION 4: CULTURE IN THE 1930s
NATIVE AMERICANS MAKE GAINS
AFRICAN AMERICANS
In 1938,
Fair Labor Standards Act 44 per week
minimum wage
CONGRESS PROTECTS WORKERS
NATIONAL YOUTH ADMINISTRATION
Liberals (left) felt FDR NOT doing enough

Conservatives (right) felt government doing TOO much
CRITICS EMERGE
CCC – Civilian Conservation Corps
Men ages 18 to 25 worked building roads, parks, planting trees (200 million trees in Dust Bowl areas)
By 1942 three million men worked for the CCC
ALPHABET AGENCIES

passing more than 15 major pieces of legislation
expanded government’s role in the nation’s economy and welfare
CONGRESS GETS BUSY
FDR LAUNCHES NEW DEAL
Guthrie
Singer Woody Guthrie used music to capture the hardship of the Great Depression
Guthrie traveled the country singing about America
GUTHRIE’S MUSIC CAPTURES ERA
Wood’s American Gothic is perhaps the most famous piece of the era (1930)
Painters like Edward Hopper, Thomas Hart Benton, and Iowa’s Grant Wood were all made famous by their work in the WPA program
Photographer Dorothea Lange gained fame from her photos during this era (featured throughout this presentation)
ARTISTS HERALDED
Families spent hours listening to the radio
Sales of radios greatly increased in the 1930s, from 13 million in 1930 to 28 million by 1940
Nearly 90% of American homes owned a radio
RADIO: THE ORIGINAL ENTERTAINMENT
FDR & Eleanor campaign by rail in 1936
FDR had wide appeal in the United States, especially in urban areas
African Americans, Jews, Catholics and immigrants all supported the popular president
FDR WINS IN 1936 . . . AGAIN
The NLRA was also called the Wagner Act
National Labor Relations Act (NLRA)
protected workers,
ensured collective bargaining,
preserved the right to unionize
IMPROVING LABOR RELATIONS
1935-1943, spent $11 billion to give jobs to 8 million
WORKS PROGRESS ADMINISTRATION
Huey Long a Senator from Louisiana
assassinated in 1935
Father Charles Coughlin
broadcast radio sermons slamming FDR
MORE CRITICS
The Supreme Court -- 1935
NIRA as unconstitutional
(citing too much government control over industry)
AAA
agricultural a local matter -- not a federal matter
SUPREME COURT REACTS
Citizens wait outside a FERA in Calipatria, CA for relief checks
FERA – Federal Emergency Relief Agency
$500 million in direct relief to the neediest Americans
CWA School in Woodville, CA
CWA – Civil Works Administration
built 40,000 schools
provided salaries for 50,000 teachers in rural America
Also built 500,000 miles of roads
PWA workers construct a public building in Hartford, Connecticut
NIRA (National Industrial Recovery Act)
PWA – Public Works Administration was part of the
The PWA provided money to states to construct schools and community buildings
March 5, FDR declared a bank holiday

Congress passed the
Emergency Relief Act
,authorized Treasury Department to inspect banks
1st- HELP BANKS
1932 ROOSEVELT WINS OVERWHELMING VICTORY over HOOVER
The Hindenburg caught fire and was utterly destroyed within a minute Of the 97 people on board, 13 passengers and 22 crew-members were killed
Radio captured news as well as providing entertainment
One of the first worldwide broadcasts was the horrific crash of the Hindenburg, a German Zeppelin (blimp), in New Jersey on May 6, 1937
Such immediate news coverage became a staple in society
LIVE NEWS COVERAGE
One of the most famous films of the era was Gone with the Wind (1939)
Other notable movies of the era included The Wizard of Oz (1939) and Snow White and the Seven Dwarfs (1937)
FAMOUS FILMS OF THE 30s
passed in 1935

Old-Age Pension

Unemployment compensation

Aid to families with dependent children & disabled (welfare)
SOCIAL SECURITY ACT
FDR wins in 1936
FDR wins 1936 election
FDR EASILY WINS 2ND TERM
Repaired business in Childersburg, Alabama
FHA – Federal Housing Administration provided home loans, home mortgages and repairs
NEW DEAL AFFECTS MANY GROUPS
Benny
Allen
Burns
Hope
Popular radio shows included comedies with Bob Hope, Jack Benny, and the duo of Burns and Allen
Soap operas (named because they were sponsored by soap companies) ran in the mornings, kids shows in the afternoon and entertainment at night
POPULAR RADIO SHOWS
1930s
STARS
A new era of glamour in Hollywood was launched with stars like Clark Gable, Marlene Dietrich and James Cagney
MOVIE
1st Farmers – reinvigorated the AAA

aid for migrants, sharecroppers, and poor farmers

authorized over $1 billion for tenant farmers to buy land
THE SECOND HUNDRED DAYS
Rising prices
stagnant wages
overbuying on credit
Hoover emphasized years of prosperity under Republican administrations
the most visible symbol of a prosperous American economy
The Dow Jones was the barometer of the Stock Market’s worth
By 1929, 4 million Americans owned stocks
Speculation: Too many Americans were engaged in speculation – buying stocks & bonds hoping for a quick profit
Margin: paying a small percentage of a stock’s price as a down payment and borrowing the rest
16.4 million shares were sold that day
The crash signaled the beginning of the Great Depression
1929 – 1940
economy plummeted and unemployment skyrocketed
Americans panicked and withdrew their money from banks
Banks had invested in the Stock Market and lost
1929- 600 banks fail

1933 – 11,000 of the 25,000 banks nationwide had collapsed
Gross National Product
fell nearly 50% from $104 billion to $59 billion
Unemployment leaped from 3% in 1929 to 25% in 1933
Other countries enacted their own tariffs and soon world trade fell 40%
meant to protect U.S. industry yet had the opposite effect
Much of Europe suffered throughout the 1920s
Congress passed the toughest tariff in U.S. history
Tariffs & war debt policies
Farm sector crisis
Easy credit
Unequal distribution of income
shantytowns sometimes called Hoovervilles began to pop up
Unemployed men wait in line for food – this particular soup kitchen was sponsored by Al Capone
offered free or low-cost food
Increased violence
farmers could grow food for their families
Many turned to tenant farming and barely scraped out a living
A severe drought gripped the Great Plains in the early 1930s
Suicide
Alcoholism
people were admitted to state mental hospitals
kindness to strangers
habits of savings & thriftiness
President Hoover recommended business as usual
“rugged individualism” – the idea that people succeed through their own efforts
People should take care of themselves, not depend on governmental hand-outs
people should “pull themselves up by their bootstraps”
Boulder Dam (Now called the Hoover Dam)
The $700 million project
world’s tallest dam (726 feet)
second largest (1,244 feet long)
provides electricity, flood control and water for 7 western states
Federal Farm Board to help farmers
National Credit Organization that helped smaller banks
Federal Home Loan Bank Act

Reconstruction Finance Corp
protect homes and businesses
{
Hoover told the Bonus marchers to go home
2,000 refused to leave
Hoover sent a 1,000 soldiers under the command of General Douglas MacArthur and his aide Dwight Eisenhower
Hoover called the Bonus marchers, “Communists and criminals”
2-term governor of New York
distant cousin of Teddy Roosevelt
Democrats also won in the house and senate
Greatest Democratic victory in 80 years
lasted from March to June 1933
FDR’s philosophy
Get people help and work through “deficit” spending
FDR passed the Glass-Steagall Act
Federal Deposit Insurance Corporation
insured accounts up to $5,000 (today = $100,000)
set strict standards for banks to follow
create as many jobs as possible as quickly as possible
airports, roads and streets, public buildings
hired artists, writers and photographers to create art
(NYA)provide education, jobs and recreation for young people
A. Philip Randolph
first all-black union
Mary McLeod Bethune
NYA
1924 Full citizenship granted

The Reorganization Act of 1934
ownership of reservations
Full transcript