The Great Depression 1927 1933 The New deal
- Slides: 69
The Great Depression 1927 – 1933 The New deal 1933 - 1939 Chapter 24 & 25
Florence Leona Christi • "I did not ask her name or her history. She told me her age, that she was 32. • She said that they had been living on frozen vegetables from the surrounding fields and birds that the children killed. ▫ Dorthea Lange--Photographer
Critical Mass 1920 s optimism drives increase in expectations of a better way of life • The Great Crash ▫ After 1929 despair sets in—all classes • The Dust Bowl ▫ Several States—north to Canada ▫ Respiratory illnesses young and old • The Great Depression ▫ Personal income, tax revenue, profits, prices international trade plunged by more than 50%. ▫ Unemployment in the U. S. 25%, --some countries 33%.
• Between October 29 and November 13, over $30 billion disappeared from the American economy. • Comparable to the total amount of money government spent to fight WW 1
The Crash • http: //www. youtube. com/watch? v=ny. AZGq. Ft. Vj w&feature=related
The Crash • Investors purchase stock on the margin, ▫ put in 10% of the investment and borrow the remaining 90% ▫ investors realized stock prices artificially high from mass investments from • 1928 --soaring stock prices attract individual, corporate investment • 1929 --stock market crashes ▫ directly affects 3 million ▫ credit crunch stifles business • Businesses lay off workers • Demand for consumer goods declines
A "Bull Market" • Five years prior to 1929, rising prices typified the stock market. • Stock prices out of proportion to actual profits • During this period, American investors enjoyed an enormous "bull market. " The opposite, a market characterized by falling prices, is called a "bear market. "
Black Thursday • People began dumping stocks • J. P. Morgan, others bought up stock to stop the panic and keep the market afloat • Investors decided to sell whatever stock they still had as soon as the market opened on Monday.
Black Tuesday October 29, 1929 • Single most devastating financial day in the history of the New York Stock Exchange • Within the first few hours the stock market was open, prices collapsed and wiped out all the financial gains of the previous year.
Unemployment, 1929 -1942
• Banks had little to no government regulations to abide by and lost many of their customers’ life savings • Hundreds of banks failed • Herbert Hoover -- government shouldn’t intervene with the economy. • families could turn the economy around if they continue to work hard and rely on themselves.
Smoot-Hawley Tariff 1930 • Increased the tariff rates on imported goods. • Foreign nations boycott American products. • This severely hurts American producers who were in dire need of sales.
Society and the Crash • http: //www. youtube. com/watch? v=cc. Nilnpvb. Jg &feature=related
The Jobless
The Homeless
The Hobos • • • Migratory Homeless Poor/penniless Indigent workers Sometimes supporting others Unlike tramps, vagabonds who did not want to work
The Rail Yard Hobos
The Migrants The “Arkies” and the “Okies”
Effects of the Depression • Hardship affects all classes • The middle class loses belief in ever-increasing prosperity • Thousands of young homeless, jobless
Fighting the Depression • Republican attempts to overcome catastrophe flounder • Depression gives Democrats opportunity to regain power
Hoover and Voluntarism • Hoover initially seeks solution through voluntary action, private charity • Resists Democratic efforts to give direct aid to the unemployed ▫ ▫ perceived as indifferent to human suffering programs seen as incompetent--failure results in loss of election of 1932
The Emergence of Roosevelt 1933 - 1945 • Franklin Roosevelt born to wealth and privilege 1921 --crippled by polio 1928 --elected governor of New York talented politician • 1932 --defeats Hoover with farmer- workerimmigrant-Catholic coalition
Roosevelt • Bulldog determination to succeed • Talent for surrounding himself with capable people and getting most out of them (the Brain Trust) • Instill hope and courage in the people “We have nothing to fear but fear itself“ http: //www. youtube. com/watch? v=3 tyvvj. Wtc-
The Hundred Days • Several significant reforms in the first three months of his initial term. ▫ Banking system saved from collapse ▫ Fifteen major laws provide relief ▫ New Deal aims to reform and restore, not nationalize, the economy
• Emergency Banking Relief Act, which permitted sound banks to reopen under direction of the Treasury Dept. • First 'fireside chat, ' Roosevelt told Americans it was safer to keep money in a reopened bank than “under the mattress
The Dust Bowl • Tons of topsoil blown off barren fields --storm clouds for hundreds of miles. • CO, KS, TX, OK; eventually entire country was affected. • 1932, 14 dust storms • By 1934, 100 million acres of farmland had lost all or most of the topsoil to the winds.
Black Sunday April 14, 1935 • April 1935 -- weeks of dust storms, • Cloud appeared on the horizon • Winds were clocked at 60 mph. Then it hit.
The Dust Bowl • http: //www. youtube. com/watch? v=z. ZQbhc. H 3 JE
Roosevelt and Recovery • National Recovery Administration 1933 ▫ ▫ Codes eliminate cut-throat competition, ensure labor peace favor big business, ▫ 1935 --NRA ruled unconstitutional – infringement on “separation of powers” ▫ Many provisions later reappears in Wagner Act • Agricultural Adjustment Act of 1933 ▫ farmers paid to take land out of cultivation ▫ prices increase ▫ sharecroppers, tenant farmers dispossessed
Roosevelt and Relief • 1933 -- Reconstruction Finance Committee (RFC) to direct aid to unemployed • 1934 --The Federal Deposit Insurance Corporation created to insure consumers’ deposits in FDIC-enrolled financial institutions –up to $5000 • 1935 --Works Progress Administration (WPA) place unemployed on federal payroll
1933 --Civilian Conservation Corps provides employment to youth
Roosevelt and Relief 1935 --Works Progress Administration (WPA) place unemployed on federal payroll
Roosevelt and Reform • 1933 -34 --focus on immediate problems • 1935 --shift to permanent economic reform
The Tennessee Valley Authority • Water Navigation • Flood Control • Electricity • Use Federal funds to modernize region
Social Security • 1935 --Social Security Act passed • Criticisms: too few people would collect pensions unemployment package inadequate • Establishes pattern of government aid to poor, aged, handicapped
Labor Legislation • 1935 --Wagner Act allows unions to organize outlaws unfair labor practices • 1938 --Fair Labor Standard Act maximum hour minimum wage
Rise of Organized Labor • 1932 --National Recovery Act spurs union organizers • Congress of Industrial Organization (CIO) formed by John L. Lewis • CIO unionizes steel, auto industries • 1940 --CIO membership hits 5 million, 28% of labor force unionized
Challenges to FDR • Signs of discontent everywhere in 1935 • Upton Sinclair almost won the governor of California • Violent strikes in textile industry in 20 states • Francis Townsend • Elderly - over 60 $200/month but had to be spent in 30 days – as a way to stimulate the economy • More than ½ the national income to less than 10% of the population – scares, frustrates economists
Huey Long Share the Wealth • Seize fortunes of more than 5 million dollars and a 100% tax in individuals earning more than 1 million dollars • Take from the rich and redistribute the wealth to make every man a king”: • Every American guaranteed a home worth $5000 thousand yearly income of $2500 • Threatened to run for presidential candidate – • Democrats fear that he could swing the republican ticket • Assassinated in Louisiana late 1935 http: //www. youtube. com/watch? v=hphg. Hi 6 FD 8 k
Father Coughlin • Stood strong against capitalism and its foundations, • Warning against the dangers of communism regularly. • “For the good of the people, ” • against all things government. " • sympathetic to fascist Nazi, Italian regimes • National Union of Social Justice • FDR administration eventually shut down his broad casts
End of the New Deal • 1936 --New Deal peaks with Roosevelt’s reelection • Congress resists programs after 1936 • Least assistance for women, ethnics groups and laborers
Pros and Cons • Did not end Depression • Failed as formula for economic recovery • Businessmen and financiers did not support New Deal– caused federal government increase • Rural Electrification Social Security • Insurance of bank accounts, protection for labor unions • Federal controls over the economy gave others sense of security
The Election of 1936 • FDR’s campaign ▫ ▫ ▫ attacks the rich promises further reforms defeats Republican Alf Landon • Democrats win both houses of Congress • FDR coalition: South, cities, labor, ethnic groups, African Americans, poor
The Supreme Court Fight • Supreme Court blocks several of FDR’s first-term programs • 1937 --FDR seeks right to "pack" Court • Congressional protest forces retreat • FDR’s opponents emboldened
The New Deal in Decline • 1936 --cutbacks for relief agencies • 1937 --severe slump hits economy • Roosevelt blamed, resorts to huge government spending • 1938 --Republican party revives
The New Deal and American Life • New Deal’s limitations depression not ended economic system not fundamentally altered little done for those without political clout • Achievements ▫ ▫ Social Security, the Wagner Act political realignment of the 1930 s
- Vocabulary review causes of the depression
- What is the main idea of this cartoon?
- Chapter 33 the great depression and the new deal
- A new deal fights the depression
- Soil conservation and domestic allotment act
- A great deal vs a great many
- Deal or no deal machine
- Rudolf vizental
- Ramsey 1927
- Golden age of aviation 1927-1939
- To the lighthouse (1927)
- Tanssija 1877-1927
- La guerra civil china
- Juan gris picasso
- 1950-1927
- Construct validity
- Almost everyone fails to pass the driver's test
- What was the deal breaker in the great schism
- Rarig great depression
- Great depression
- Sec the great depression
- Foreclosure great depression
- Five effects of the great depression
- Five effects of the great depression
- How did the great depression impact the world
- Great depression ap world history definition
- Bud not buddy
- Donald justice pantoum of the great depression
- The great depression summary
- What is deflation
- Okies great depression
- The great depression leq
- Roaring twenties scavenger hunt answers
- How did the great depression affect daily life
- Timeline of the great depression
- Great depression causes
- Mexican repatriation apush
- Boxing during the great depression
- Birth rate during the great depression
- Overspeculation great depression
- Great depression vocab
- Great depression vocabulary words
- Great depression
- Http://www.history.com/topics/great-depression
- Great depression
- Hawley-smoot tariff great depression
- Stock market crash cartoon 1929
- Hardship and suffering lesson 2
- Lesson 3 effects of the great depression
- Hoover v. fdr: responses to the great depression
- Laissez faire great depression
- Laissez faire great depression
- New woman
- Great depression acrostic
- Hoovervilles great depression
- Great depression political cartoons
- Pros and cons of the great depression
- Great depression vocabulary jeopardy
- Chapter 22 the great depression begins
- Great depression
- Great depression webquest
- Compare and contrast fdr and hoover
- Great depression date
- Hoovers response to the great depression
- Great depression
- What was hoover's response to the great depression
- Great depression
- Great depression
- Dust bowl map
- High tariffs great depression