Roaring 20s and The Great Depression 4 Part

Roaring 20’s and The Great Depression ■ #4 Part 2 – FDR and The New Deal – Glass-Steagall Act – Federal Securities Act – Deficit spending

■ Essential Question: –In what ways did President Franklin Roosevelt’s “New Deal” provide relief, recovery, & reform during the Great Depression? ■ Warm-Up Question: –?

Hoover & the Depression ■ From 1929 to 1932, President Hoover was criticized for not doing more to end the depression –Unemployment reached 25% –U. S. banking collapsed –Hoover offered gov’t intervention (relief check, job programs) but it was seen as too little, too late ■ By the election of 1932, Americans wanted hope & strong leadership

Unemployment in America, 1929 -1942

FDR & the New Deal ■ In 1932, Democrat Franklin Roosevelt (FDR) defeated Hoover

“Let me assert my firm belief that the only thing we have to fear is fear itself; nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance. ” FDR’s inaugural address in 1933 inspired hope

FDR & the New Deal ■ FDR initiated his New Deal, a series of laws that were designed to fight the depression by offering: –Relief: gov’t relief checks & jobs to get people back to work –Recovery: tried to end the depression by stimulating industry & farming –Reform: long-term solutions to America’s economic problems

The Hundred Days ■ In his 1 st 100 days in office, FDR & Congress passed 15 major laws –FDR’s 1 st action was to address the bank crisis; By 1933, people had no faith in banks –FDR declared a 4 -day bank holiday after which banks were allowed to re-open only after gaining a gov’t endorsement

Banks recovered & Americans slowly regained confidence in banks

FDR’s Fireside Chats Listen to the first few minutes of FDR’s ■ FDR usedchat the in radio to 1933 sell his New 1 st fireside March in which he explains to his the bank. American holiday people Deal programs –These “fireside chats” used simple , clear language to explain his New Deal programs & gain public support for these goals

■ In groups, examine the information on 1 New Deal program & create a “fireside chat” to explain the program to the class After the presentations, match the – Draft a fireside chat that identifies descriptions of each New Deal initiative the problem & a brief overview of the found on the back of your notes with plan the fireside chat presentations –Do not mention the name of your New Deal program—we will try to guess it

New Deal: Relief ■ The greatest success of the New Deal was its ability to offer relief to unemployed citizens: –The gov’t provided relief checks to 15% of Americans –The gov’t created jobs for Americans

Percentage of American Families Accepting Government Relief in 1933

New Deal: Relief ■ Civilian Conservation Corps (CCC) was a work program for young men aged 18 -25: –The CCC built roads, soil erosion projects, & parks –The CCC employed 3 million young men

CCC workers paved roads, planted trees, built bridges

New Deal: Reforms ■ The New Deal created long-term reforms to address weaknesses in the American economy ■ Securities & Exchange Commission (SEC) was created to regulate the stock market & prevent another stock market crash

New Deal: Reforms ■ To help restore public confidence in banks, the Federal Deposit Insurance Corporation (FDIC) was created: –The national gov’t insures money in bank accounts (up to $250, 000 as of 2006)

New Deal: Reforms ■ The Tennessee Valley Authority (TVA) created hydroelectric power plants in the South –TVA created dams in 7 states to provide cheap hydroelectric power & create jobs

New Deal: Recovery ■ New Deal programs tried to stimulate the economy & end the depression –Agricultural Adjustment Act (AAA) tried to help farmers by paying them not to produce –By lowering supply, the gov’t hoped to increase crop prices

Unemployment in America, 1929 -1942 The New Deal began in 1933, but by 1935 the Great Depression had not yet come to an end

FDR’s Critics ■ The failure of the New Deal to end the depression led to frustration & criticism of FDR’s programs: –The most vocal critic was Louisiana Senator Huey Long –Long’s Share the Wealth plan suggested taxing all personal income over $1 million to give each family $2, 500 per year

Huey Long “The Kingfish” How many men ever …then we've got to went to a barbecue & Now, how are you But Mr. when they've got call Morgan & Mr. would let one man going to feed the everything on God's Mellon & Mr. take off the table balance of the loving earth that they Rockefeller back and what's intended for people? What's can eat & they can th say: “Come back here, 9/10 of the people Morgan & Baruch & wear & they can live put that stuff back on to eat? The only way Rockefeller & Mellon in, & all that their Huey Long threatened to run this table here that you'll ever be able to rd going to do with all children can live in as a 3 Party candidate but& you took away from feed the balance of that grub? They can't wear & eat, & all of was assassinated in 1935 here that you don't the is to make eat people it, they can't wear their children's need. Leave that man come back the clothes, they can't children can use, … something else for the & bring back some of live in the houses. American people to that grub that he ain't got noconsume. ” business with!

Court Packing ■ The Supreme Court declared 2 recovery programs unconstitutional –FDR feared that the Supreme Court would weaken the New Deal –FDR’s solution was to ask called court-packing: He wanted to increase the number of justices from 9 to 15 –Congress rejected his radical plan

FDR’s Second New Deal ■ In 1935, FDR launched the Second New Deal –The Works Progress Administration (WPA) was the biggest New Deal program –Created 10 million jobs in a variety of professions & cost the gov’t $10 billion

WPA Public Work Project

WPA Initiatives

WPA Arts Project

WPA Music Projects

WPA Theater Projects

FDR’s Second New Deal ■ Social Security was America’s 1 st welfare program; It created –Old-age pensions to be funded by employers & workers –Welfare payments for the blind, handicapped, & needy children

FDR’s Second New Deal ■ The Wagner Act: –Protected workers right to strike & collectively bargain –Outlawed unfair practices used by companies to discourage union membership

The First New Deal (4. 46)

The Second New Deal (6. 00)

Conclusions ■ FDR’s New Deal created a new role for the U. S. government: –For the 1 st time, the gov’t used deficit spending (going into debt) to stimulate the economy –For the 1 st time, the gov’t took responsibility for the people & created welfare programs –New Deal successfully offered relief to ease peoples’ suffering, but it did not end the Depression