THE GREAT DEPRESSION AND THE NEW DEAL 1929

THE GREAT DEPRESSION AND THE NEW DEAL 1929 -1939

THE GREAT DEPRESSION CHAPTER FOURTEEN

THE GREAT DEPRESSION AND NEW DEAL OBJECTIVE 1. understand the causes and consequences of the Great Depression 2. understand the impact of FDR’s New Deal legislations on the American nation

CHAPTERS IN BRIEF - OVERVIEW The economic boom of the 1920 s collapses in 1929 as the United States enters a deep economic depression. Millions of Americans lose their jobs, and President Hoover is unable to end the downslide.

THE NATION’S SICK ECONOMY CHAPTER 14 – SECTION 1

CHAPTERS IN BRIEF Although the economy of the 1920 s boomed, trouble lurked beneath the surface. The textile, steel, and railroad industries were barely profitable. Mining and lumbering were in decline. In the late 1920 s, the auto, construction, and consumer goods industries faltered. The biggest problem, though, was in agriculture. Wartime demand for food dropped, and farmers suffered. Unable to make mortgage payments, many lost their land. Congress tried to help farmers by passing laws that would boost food prices, but President Calvin Coolidge vetoed them. Farmers, short on money, bought fewer goods. That trend, combined with the consumer debt load, cut consumer spending. Consumer spending was also hurt by low incomes. These problems were not completely evident in the 1928 presidential election. Republican Herbert Hoover, pointing to years of prosperity under presidents Harding and Coolidge, won the election over Democrat Alfred Smith.

CHAPTERS IN BRIEF Meanwhile, the stock market continued its amazing rise. People bought stocks, hoping to become rich. Many bought on margin, borrowing against future profits to pay for stocks today. If prices did not rise, though, there would be trouble. Stock prices began a decline in September of 1929. On October 29, known as Black Tuesday, they plunged sharply. More than 16 million shares of stock were sold that day until no more willing buyers could be found. By mid-November investors had lost more than $30 billion. The Depression spread around the world. The drop in consumer demand in the United States cut European exports, hurting their economies. Also, Congress passed a high tariff to reduce imports. They hoped to protect American industry, but instead cut the demand for American exports. President Hoover tried to reassure Americans that the economy would right itself. Many people, panicking, pulled their money from banks. With so many withdrawals happening so suddenly, many banks were forced to close. When the banks failed, other depositors lost their deposits. Businesses began to close as well, and millions of Americans lost their jobs. Unemployment had been 3 percent in 1929; by 1933, it was 25 percent. Those who kept their jobs suffered pay cuts or reduced hours.

CHAPTERS IN BRIEF The great stock market crash signaled the beginning of the Great Depression. It didn’t cause the Depression, but it hurried—and worsened—the economic collapse. The main causes of the Depression were a decrease in demand for American goods overseas, farmers’ problems, the problem of easy credit, and the fact that too few people held too great a share of the nation’s wealth.

ECONOMIC TROUBLES ON THE HORIZON • as the 1920 s went on, there were serious problems that threatened the prosperity of the decade 1. Industry • roads struggled to compete against new forms of transportation • the coal industry suffered against new forms of energy production • many other industries slowed down as well 2. Agricultural • post WWI, demands for crops went down • farmers boosted production, but this oversupply drove prices down • Congress tried to set price supports, but President Coolidge vetoed it

ECONOMIC TROUBLES ON THE HORIZON 3. Consumers Have Less Money To Spend • rising prices • stagnant wages • unbalanced distribution of income • overbuying on credit in previous years 4. Living on Credit • many Americans were living beyond their means • this led to large amounts of debt, and trouble paying those debts 5. Uneven Distribution of Income • rich get richer (+75% income) • poor get poorer (+9% income)

HOOVER TAKES THE NATION • President Hoover wins the election of 1928 with his promise of……. . “We in America are nearer to the final triumph over poverty than ever before. ”

HOOVER TAKES THE NATION • The Dow Jones Industrial Average • those who could afford to invested • the Dow Jones had gone up consistently throughout the 1920 s • people wanted in on this “bull market” • Problems in the market: • Speculation: buying stocks and bonds with the chance of a quick profit while ignoring the risks of doing so • Buying on margin: paying a small percentage of a stock’s price and borrowing the rest • those buying tactics could destroy a person financially if stock prices went down

THE STOCK MARKET CRASHES • Stock prices peaked in early September 1929 • prices then began to fall • caused a waver in confidence; some investors pull their money • on October 24 th, the market took a plunge

THE STOCK MARKET CRASHES • Black Tuesday • On October 29 th, 1929, the bottom fell out on the stock market • people frantically sold stocks before the prices could drop lower • 16. 4 MILLION shares were dumped in one day! • people who had bought on margin could not find buyers for their stocks, and were stuck with huge debts • by mid-November, investors had lost $30 billion (the amount it cost to fight WWI)

FINANCIAL COLLAPSE • the stock market crash triggered the beginning of the Great Depression • the crash did not cause the Great Depression, but it did make it more severe

FINANCIAL COLLAPSE • Banks and Business Failures • people panicked and withdrew their money from banks • many banks had lost their money in the stock market, and couldn’t give people their money • there was no government protection for people, so they lost their savings when their bank closed • unemployment went from 3% in 1929 to 25% in 1933

FINANCIAL COLLAPSE • Worldwide Shock Waves • the Great Depression made it harder to produce American goods to ship abroad • Protective tariffs were created to help U. S. business, but ended up making the situation worse

STOCK MARKET CRASH VIDEO http: //www. youtube. com/watch? v=RJp. LMvg. UXe 8 (10: 05)

**CAUSES OF THE GREAT DEPRESSION 1. tariffs and war debt policies that cut down the foreign market for American goods 2. a crisis in the farm sector 3. the availability of easy credit 4. an unequal distribution of wealth **

ESSENTIAL QUESTION How did the economic trends of the 1920 s help cause the Great Depression? Explain. Answer the question in three complete sentences in your summary section.

HARDSHIP AND SUFFERING DURING THE DEPRESSION CHAPTER 14 – SECTION 2

CHAPTERS IN BRIEF The Depression devastated many Americans. With no jobs, millions of people went hungry or homeless. Cities across the country were full of people who had been thrown out of their apartments or homes because they couldn’t meet housing payments. They slept under newspaper or built shantytowns. People stood in line to get food from soup kitchens set up by charities. African Americans and Hispanic Americans living in the cities suffered greatly. Some suffered violence at the hands of angry whites who had lost their jobs. These groups had higher jobless rates; they also were given lower-paying jobs. The Depression hurt people in rural areas, too, although farmers could at least grow food. Still, as food prices continued to fall, more and more farmers lost their farms from failure to meet mortgage payments. From 1929 to 1932, about 400, 000 farmers lost their land. To worsen matters, a long drought struck the Great Plains. Parched land could hold no crops. When powerful winds swept the plains, they blew the soil away in vast dust storms. An area known as the Dust Bowl was hardest hit. Many farmers packed up their belongings and moved to California to find work as migrant farm workers.

CHAPTERS IN BRIEF The Depression placed heavy pressures on the family. Many men felt ashamed because they had lost their jobs. Some abandoned their families. Women found work if they could, but they generally were paid less than men. Some people, too, argued that employers should hire men rather than women since they were seen as the primary support for a family. Children suffered from poor diets and lack of health care. The number of children suffering illnesses due to lack of vitamins increased. Lacking money to continue, many school boards shut down schools or shortened the school year. Many children went to work to try to help their families survive. Others rode the railways in search of better lives.

THE DEPRESSION DEVASTATES PEOPLE’S LIVES • The Depression in the Cities • people lost their jobs, were evicted, and ended up homeless • some slept in the streets, others • built shantytowns • Shantytowns: towns of shacks made out of whatever people could find – “Hoovervilles” • people went to soup kitchens and bread lines for food • racial tensions increased due to everyone competing for the same rare jobs

THE DEPRESSION DEVASTATES PEOPLE’S LIVES • The Depression in Rural Areas • thousands lost their farms to foreclosure, and thusly could not feed their families • many farmers turned to tenant farming and barely scraped by

THE DEPRESSION DEVASTATES PEOPLE’S LIVES • The Dust Bowl • a drought in the early 1930 s wrecked havoc on the Great Plains • due to over farming, there was too much loose soil that could go airborne • when the rain stopped and the winds picked up, massive dust storms formed • Kansas, Oklahoma, Texas, New Mexico, and Colorado were worst hit. • many people fled West and were called “Okies”

HARDSHIP AND SUFFERING DURING THE GREAT DEPRESSION March 24, 1935 Dear Family, Did some of you think that you had a dust storm? I’ll tell you what it was. It was us shaking our bedding, carpets, etc. For over a week we have been having troublesome times. The dust is something fierce. Sometimes it lets up enough so we can see around; even the sun may shine for a little time, then we have a frenzied time of cleaning, anticipating the comfort of clean feeling once more.

HARDSHIP AND SUFFERING DURING THE GREAT DEPRESSION We keep the doors and windows shut tight, with wet papers on the sills. The tiny particles of dirt sift right through the walls. Two different times it has been an inch thick on my kitchen floor. Our faces look like coal miners’, our hair is gray and stiff with dirt and we grind dirt in our teeth. We have to wash everything before we eat it and make it as snappy as possible. Sometimes there is a fog all through the house and all we can do about it is sit on our dusty chairs and see that fog settle slowly and silently over everything. When we open the door, swirling whirlwinds of soil beat against us unmercifully, and we are glad to go back inside and sit choking in the dirt. We couldn’t see the streetlight just in front of the house.

HARDSHIP AND SUFFERING DURING THE GREAT DEPRESSION One early morning, I went out during a lull, and when I started to return I couldn’t see the house. I knew the direction, so I kept on coming, and was quite close before I could even see the outline. It sure made me feel funny. There has not been much school this week. It let up a little yesterday and Fred went with the janitor and they carried dirt out of the church by the scoopful. Four of them worked all afternoon. We were able to have church this morning, but I think many stayed home to clean. A lot of dirt is blowing now, but it’s not dangerous to be out in it. The dirt is all loose, any little wind will stir it, and there will be no relief until we get rain. If it doesn’t come soon there will be lots of suffering. If we spit or blow our noses we get mud. We have quite a little trouble with our chests. I understand a good many have pneumonia.

HARDSHIP AND SUFFERING DURING THE GREAT DEPRESSION As for gardens, we had ours plowed, but now we do not know whether we have more or less soil. It’s useless to plant anything. Grace

DUST BOWL (5: 56) http: //www. youtube. com/watch? v=gu. Tek 7 ip. D 4 U

EFFECTS ON THE AMERICAN FAMILY • family unity played an important part in getting through times • many men had to leave their families in search of work, became known as “hoboes” • there was next to no direct relief from the government for families • women kept the family together • some women worked, but this created resentment from men • children faced serious health problems due to a poor diet • many children also left school and went to work • many teenagers left home and hopped on the rails to find work elsewhere

SOCIAL AND PSYCHOLOGICAL EFFECTS • the suicide rate rose by more than 30% between 1928 - 1932 • three times as many people were admitted to mental hospitals • adults stopped going to doctor or dentist • students stopped going to college • others put off getting married, raising large families, or having kids • the Depression put financial security on people’s minds (their minds on their money and their money on their minds) • many families and communities were strengthened • many people developed habits of savings and thriftiness

ESSENTIAL QUESTION Explain how the Depression affected men, women, and children. Answer the question in three complete sentences in your summary section.

HOOVER STRUGGLES WITH THE GREAT DEPRESSION CHAPTER 14 – SECTION 3

CHAPTERS IN BRIEF Economic slowdowns happen with some frequency. President Hoover at first believed that the Depression was simply another slowdown that would end. Officials in his administration thought it best to do nothing and let the economy heal itself. Hoover believed government should take action, but be careful not to take too much power. Hoover thought that the government’s role should be to help different groups work together to improve the economy. He also believed that the government should encourage private groups to provide benefits— food and shelter—to the needy and jobless. He did not think that the government should provide direct aid to people, however. Hoover met with bankers, business leaders, and labor leaders. He urged them to work together to revive the economy. Despite these efforts, the economic situation simply got worse. People expressed their frustration at the situation. Farmers destroyed some food or refused to work. People without homes began to call their shantytowns “Hoovervilles. ” Hoover did not change his principles and offer direct aid to the jobless and hungry. He did take steps to have a more active government role in the economy, however. He began a program of major public works, including building roads, bridges, and dams, to provide jobs. He launched a program to try to raise food prices and urged bankers to join a credit organization that would shore up ailing smaller banks.

CHAPTERS IN BRIEF By 1932, the economy had still not improved. Congress passed a law to lower the rates for home mortgages, hoping to spur the construction industry. Hoover created the Reconstruction Finance Corporation, aimed at funding projects that would create jobs. The RFC was a major change in policy, but it came too late to help. Hoover’s popularity plummeted even further in 1932 when World War I veterans came to Washington. They demanded early payment of the bonuses they had been promised. This Bonus Army began to live in tents near the Capitol building. Hoover helped them, but after Congress voted down the bill they had requested, he told the veterans to leave. About 2, 000 stayed, and Hoover ordered the army to remove them. The sight of U. S. army troops gassing American citizens—including children—outraged many people. Hoover faced the 1932 presidential campaign more unpopular than ever.

HOOVER TRIES TO REASSURE THE NATION • “Any lack of confidence in the economic future… is foolish” • Hoover believed that Americans should remain optimistic and continue business as usual • saw the Depression as part of the business cycle • believed that government could play a limited role in helping to solve problems

HOOVER’S PHILOSOPHY • put great faith in the power of reason • believed that government’s job was to foster cooperation between cooperating groups and interests in society • valued “rugged individualism”- Americans should succeed through their own efforts • did not support federal welfare • individuals, charities, and local organizations should help the poor • Hoover’s beliefs about helping the poor shocked and frustrated suffering Americans

HOOVER TAKES CAUTIOUS STEPS • brought together key leaders from business banking and labor and tried to have them find solutions to the Depression • asked employers not to cut wages lay off workers • asked labor leaders not to demand higher wages or strike • none of the steps taken did much good • authorized the construction of the Boulder (Hoover) Dam • provided water to cities on the West Coast • allowed California’s agricultural economy to grow

BLAME SHIFTS TOWARDS HOOVER AND THE REPUBLICANS • Democrats take advantage of anti-Hoover sentiments • take control of the House • knock Republican control of Senate down to one vote • Uprising by Farmers • burn crops and dump milk on roads instead of selling at a loss • farmers declare a “farm holiday” and refuse to work • block roads to keep crops from getting to market • Poking Fun at Hoover • Shantytowns become “Hoovervilles” • newspapers used as blankets became “Hoover Blankets” • empty pockets pulled out became “Hoover Flags” • even in the face of all this, Hoover held to his principles

HOOVER TAKES ACTION • Backed cooperatives • Federal Farm Board • National Credit Corporation • Direct Intervention • Federal Home Loan Bank Act: Lowered mortgage rates for homeowners and allowed farmers to refinance their homes at a lower rate • Reconstruction Finance Corporation: authorized up to two billion dollars for emergency financing for banks, life insurance, railroads and other large businesses • showed Hoover’s softening stance on his position of government intervention in the economy

DEALING WITH THE BONUS ARMY • in the spring of 1932, between 10 and 20 thousand WWI vets went to D. C. in hopes of helping to pass a bill that would have given them a bonus • the Patman Bill was supposed to pay the soldiers in 1945… they wanted their money in 1932 • Hoover saw them as communists and criminals, but initially did allow them to protest • the Senate rejects the payout in June, and Hoover asked them to leave • on July 28 th, the people who refused to leave were gassed by the Army, which led to the death of a baby and the blindness of an eight year old. • most Americans are shocked by the treatment of veterans

ESSENTIAL QUESTION Explain some of Hoover’s beliefs / philosophy about government. Answer the question in three complete sentences in your summary section.

THE NEW DEAL CHAPTER FIFTEEN

CHAPTERS IN BRIEF - OVERVIEW President Roosevelt launches a program aiming to end the Depression. The Depression and his New Deal have profound effects.

A NEW DEAL FIGHTS THE GREAT DEPRESSION CHAPTER 15 – SECTION 1

CHAPTERS IN BRIEF In the 1932 election, Franklin Delano Roosevelt—or FDR—won a landslide victory, and Democrats took control of the House and Senate. His policies were called the New Deal. The first step was to reform banking: many were closing, causing panic. The new president tried to end the crisis by temporarily closing banks and passing a number of new laws. He reassured the nation in a radio “fireside chat” that explained his policies. Roosevelt acted to help farmers and other workers. The Agricultural Adjustment Act raised food prices. Other agencies hired jobless workers for conservation or building projects. An agency was created to help the needy. The National Industrial Recovery Act (NIRA) promoted industrial growth. The Tennessee Valley Authority brought flood control and electricity to a poor region. The president’s actions were attacked by liberals as not enough and by conservatives as too radical. When the Supreme Court overturned the NIRA and another New Deal law, Roosevelt proposed a plan to add his own justices to the Court. It failed. Eventually the Court backed the New Deal, but the court scheme cost him support.

CHAPTERS IN BRIEF Three critics of Roosevelt rose to prominence. Father Charles Coughlin blasted the president on his popular radio show. Dr. Francis Townsend proposed a national pension for the elderly. Huey Long, a politician from Louisiana, proclaimed a plan called “Share Our Wealth. ”

AMERICANS GET A NEW DEAL • The Presidential Election of 1932 • Republicans run Hoover knowing he has little shot at winning. • Democrats run Franklin Delano Roosevelt • Roosevelt won an overwhelming victory • 23 million votes to Hoover’s 16 million • Democrats claimed a nearly two thirds majority in the Senate • Democrats also controlled almost threefourths of the House • the election showed Americans were ready for a change!

FRANKLIN ROOSEVELT • two term governor from New York • distant cousin of Teddy Roosevelt • had a “can do” attitude that attracted voters • was very compassionate • effective, reform minded leader • was partially paralyzed from the waist down due to polio • • got polio at age 38 was not often photographed in his wheelchair made a point of standing during his speeches the media helped to hide his disability

WAITING FOR ROOSEVELT TO TAKE OVER • there were four months between Roosevelt’s election and inauguration (Hoover’s “lame duck” period) • Roosevelt formed his “Brain Trust” • carefully picked group of advisors • they began to formulate what we know as “The New Deal”

THE HUNDRED DAYS • lasted from March 9 th to June 6 th, 1933 • during this period, Congress passed more than 15 pieces of major New Deal legislations that expanded government’s role in the nation’s economy • nn Roosevelt’s first day in office, he persuaded Congress to pass the Emergency Banking Relief Act, which authorized the Treasury Department to inspect the nation’s banks

FIRESIDE CHATS • radio talks about issues of public concern given by President Roosevelt Video: (5: 04) http: //www. youtube. com/watch? v=z 9 CBpbu. V 3 ok • first one explained why the nation’s welfare depended on public support of the government and the banking system • these fireside chats made Americans feel as if the president was talking directly to them • these chats helped to inspire hope

A NEW DEAL FIGHTS THE GREAT DEPRESSION ** The New Deal Centered Around Three R’s 1. Relief 2. Recovery 3. Reform **

NEW DEAL LEGISLATION • Regulating Banking and Finance • Glass-Steagall Act: established the FDIC (insured money) • Federal Securities Act: required corporations to provide complete information on all stock offerings and made them liable for any misrepresentations • Security and Exchange Commission: regulated the (SEC) stock market

NEW DEAL LEGISLATION • Assistance for Rural Areas • Agricultural Adjustment Act: sought to raise crop prices (AAA) by lowering production by paying farmers to leave certain lands unseeded • Tennessee Valley Authority: renovated existing dams (TVA) and built new ones in the Tennessee River Valley provided electricity and prevented flooding

NEW DEAL LEGISLATION • Providing Work Projects • Civilian Conservation Corps: put young men to work at a variety (CCC) of construction jobs • National Industrial Recovery Act: provided money to states to (NIRA) create jobs chiefly in the construction of schools and community buildings • Civil Works Administration: provided four million immediate jobs (CWA)

NEW DEAL LEGISLATION • Promoting Fair Practices • National Recovery Administration: set the prices of many products (NRA) and established standards • Food, Clothing, and Shelter • Home Owners Loan Corporation: provided government loans to (HOLC) homeowners who faced foreclosure • Federal Housing Administration: furnished loans for home mortgages (FHA) • Federal Emergency Relief Administration: funded $500 million to (FERA) directly relieve the needy = immediate change

THE NEW DEAL COMES UNDER ATTACK • ** Liberals were critical of the New Deal because they do not feel that it went far enough to help the poor and reform the nation’s economic system ** • Conservatives said that Roosevelt spent too much on direct relief and that he controlled too much of business • the Supreme Court struck down the NIRA and AAA as unconstitutional • others believed the New Deal violated personal rights and property • still more are critical of the New Deal’s deficit spending

ESSENTIAL QUESTION Which of the New Deal programs do consider the most important? Justify. Answer the question in three complete sentences in your summary section.

THE SECOND NEW DEAL TAKES HOLD CHAPTER 15 – SECTION TWO

CHAPTERS IN BRIEF The economy improved, but not enough. Buoyed by Democratic gains in Congress, Roosevelt launched the Second New Deal to provide additional relief to farmers and workers. Helping him maintain popularity was his wife, Eleanor. The president easily won re-election in 1936. The Supreme Court had struck down the first New Deal act to help farmers. In the Second New Deal, Roosevelt won passage of new laws aimed at conserving soil, providing loans, and offering mortgage relief. A new agency, the Works Progress Administration (WPA), was started to fund projects that would create jobs. Between 1935 and 1943, it gave jobs to more than 8 million people. They built public buildings, made clothes and constructed or repaired 651, 000 miles of roads and streets. The Second New Deal tried to help workers by setting a national minimum wage, limiting the work week, and requiring employers to pay overtime. The Wagner Act recognized workers’ right to organize unions.

CHAPTERS IN BRIEF The Second New Deal also set up the social security system. It made payments to retirees, disabled workers, the unemployed, and families with dependent children. Finally, the Second New Deal included the Rural Electrification Administration. It provided more electrical power in rural areas.

THE SECOND HUNDRED DAYS • by 1935, Roosevelt was looking for ways to build on The Hundred Days • gains not as great as expected • unemployment still high • production still lagged

THE SECOND HUNDRED DAYS • Roosevelt decided to launch a second burst of activity in which he asked Congress to provide more extensive relief for both farmers and workers • commonly referred as “The Second New Deal”; was also called “The Second Hundred Days”

ELEANOR ROOSEVELT • Roosevelt’s wife who helped remind him of the suffering of the average American • social reformer who combined her deep humanitarian impulses with great political skills

ELECTION OF 1936 • Roosevelt easily defeats Alfred Landon • Roosevelt draws votes from a wide variety of groups • significant because it was the first time that African Americans voted Democratic instead of Republican

SECOND NEW DEAL LEGISLATION • Helping Farmers • Soil Conservation and Domestic Allotment Act: paid farmers for cutting production of soil depleting crops and rewarded farmers for practicing good conservation methods • Second Agricultural Adjustment Act: brought back many features of the first AAA, but avoided the parts that the Supreme Court had declared unconstitutional • Farm Security Administration: loaned more than one billion dollars to (FSA) help tenant farmers become landowners

SECOND NEW DEAL LEGISLATION • Extending Relief • Works Progress Administration: set out to create as (WPA) many jobs as possible as quickly as possible • National Youth Administration: provided (NYA) education, jobs, counseling, and recreation to young people

SECOND NEW DEAL LEGISLATION • Improving Labor Conditions • National Labor Relations Act: commonly called the Wagner Act reestablished collective bargaining and prohibited unfair labor practices • Fair Labor Standards Act: set maximum hours, set minimum wages, regulated child labor • Social Security Act: gave old age insurance to those 65 and (SSA) older, gave unemployment benefits to those who needed it, and gave aid to families with children and people with disabilities • Social Security Act = long-term changes

SECOND NEW DEAL LEGISLATION • Expanding and Regulating Utilities • Rural Electrification Administration: financed and worked (REA) with electoral cooperatives to bring electricity to isolated areas • Public Utility Holding Company Act: outlawed the ownership of utilities by multiple holding companies

ESSENTIAL QUESTION Which group – farmers, unemployed, youth, retirees – do you think benefited the most from the Second New Deal? Explain. Answer the question in three complete sentences in your summary section.

THE NEW DEAL AFFECTS MANY GROUPS CHAPTER 15 – SECTION 3

CHAPTERS IN BRIEF Women benefited from the New Deal. Agencies did not discriminate in hiring, giving many women new opportunities. Roosevelt named the first female cabinet secretary— Frances Perkins—and appointed many women judges. Women still struggled against discrimination, however. Agencies and businesses did not hire women in proportion to their numbers in the population, and women continued to be paid less than men. Mary Mc. Leod Bethune, an African-American woman, became head of the Division of Negro Affairs of the National Youth Association. She helped blacks gain access to the agency’s programs and organized an unofficial “Black Cabinet” to advise the president. Roosevelt, however, never pressed for full civil rights for African Americans; he feared losing the support of white Southerners. Despite this lack of vigorous support for civil rights, most African Americans backed him and the New Deal. Mexican Americans did, too. Roosevelt’s Commissioner of Indian Affairs helped pass the Indian Reorganization Act, strengthening Native American land claims.

CHAPTERS IN BRIEF Roosevelt and the Democratic party forged a new political coalition of Southern whites, urban voters, African Americans, and unionized workers. Labor was a key part of this coalition. New Deal laws made it easier for workers to organize. During the 1930 s, union membership soared from less than 3 to more than 10 million. The United Mine Workers and United Auto Workers, with some other unions, split from the American Federation of Labor (AFL) to form a new group, the Congress of Industrial Organizations (CIO). To win gains, labor often had to strike. Sometimes the strikes turned violent.

THE NEW DEAL BRINGS NEW OPPORTUNITIES • the New Deal represented an important opportunity for minorities and women • however, gains for these groups were limited • prejudice and discrimination continued to hamper progress

WOMEN MAKE THEIR MARK • named to important government positions • Frances Perkins (first female Cabinet member) • two diplomats • federal judge • still faced discrimination • resentment from out of work men • wage codes paid women less than men • the long term trend of women in the workplace continued

AFRICAN-AMERICAN ACTIVISM • more than 100 appointed to key government positions • “Black Cabinet” formed to advise Roosevelt on racial issues • Eleanor Roosevelt pushed for Marian Anderson to sing at the Lincoln Memorial in 1939 • however, the Roosevelt Administration did not commit fully to Civil Rights • even with limited support, African Americans strongly supported FDR

MEXICAN AMERICANS AND NATIVE AMERICANS • Mexican Americans • Tended to support the New Deal • Faced discrimination from New Deal agencies • Native Americans • Indian Reorganization Act • Economic (land would belong to tribe) • Cultural (children can attend school on the reservation) • Political (tribes can elect tribal councils to govern reservation) • Gave tribes more autonomy

FDR CREATES THE NEW DEAL COALITION • New Deal coalition: alignment of diverse groups dedicated to supporting the Democratic Party • • Southern whites various urban groups African Americans unionized industrial workers • Democrats dominate politics in the 1930 s and 1940 s

LABOR UNIONS FLOURISH • Roosevelt “a friend of labor” • union members get better working conditions • also get better bargaining powers • union membership goes from three million to ten million

LABOR DISPUTES • sit down strikes were the preferred method of striking • Memorial Day Massacre: police attacked strikers outside of Republic Steel in Chicago • 10 killed • 84 wounded • Led to forced negotiations with the union

THE CULTURE OF THE 1930 S CHAPTER 15 – SECTION 4

CHAPTERS IN BRIEF During the Depression, the radio and film industries flourished. About 90 percent of all households owned radios, and 65 percent of the population went to a movie once a week. The movies offered drama, comedies, and entertaining musicals. Hollywood became identified with glamour and sophistication. Families typically gathered by their radio each evening to hear their favorite shows. President Roosevelt addressed the nation in his “fireside chats” on several occasions. The art and literature of the 1930 s was more sober, offering serious critiques of American society or uplifting messages about the strength of character and values of the people. One branch of the WPA, the Federal Arts Project, paid artists to create posters, murals, and other public works of art. The Federal Theater Project brought drama to communities across the country. Some writers had work funded by the Federal Writers’ Project. A famous author of the period was John Steinbeck. His novel The Grapes of Wrath showed the suffering caused by the Dust Bowl.

THE IMPACT OF THE NEW DEAL CHAPTER 15 – SECTION 5

CHAPTERS IN BRIEF By 1937, the economy had recovered enough to convince many Americans that the Depression was over. Unemployment, still high, was much less than earlier in the decade. Many politicians pushed Roosevelt to cut back on New Deal programs. He did, and the economy fell back again. However, Roosevelt did not restore the New Deal. Opinion on the New Deal still differs. Conservatives say that under Roosevelt the federal government grew too large and extended into everyday life. Liberals say that the New Deal didn’t go far enough in restructuring the economy and wealth. Supporters say that Roosevelt managed a balance between preserving the existing economic system and reforming it. The New Deal did result in expanded power for the federal government. It also relieved the suffering of many people, struggling in the midst of the Depression’s harshest years. It boosted the rights of workers to unionize and aided farmers by creating a program of price supports that remained in effect for decades. Many banking and finance reforms begun under the New Deal are still in action, and Americans are still benefiting from Roosevelt’s environmental protection efforts. Perhaps the longest-lasting New Deal programs are social security and the creation of the Tennessee Valley Authority.

NEW DEAL REFORMS ENDURE • Roosevelt hinted at a Third New Deal during his second term • however, due to deficit spending (spending more than you take in) Congress pressured him to scale back the New Deal programs • by 1939, the New Deal was effectively over • Roosevelt’s focus shifted to Europe and World War II

SUPPORTERS AND CRITICS OF THE NEW DEAL • Criticism • most conservatives think President Roosevelt made the federal government too large and too powerful • Liberal critics argue that Roosevelt did not do enough to socialize the economy and eliminate inequalities. • Support • Roosevelt struck a reasonable balance between unregulated capitalism and overregulated socialism

THE IMPACT OF THE NEW DEAL • The Economy • • Infused the economy with millions of dollars Created federal jobs Attempted to regulate supply and demand Increased active participation in settling labor and management disputes • Established agencies to regulate banking and investment activities: • FDIC – Federal Deposit Insurance Corporation • SEC – Securities and exchange Commission • The government had to go deeply in debt to provide jobs and aid to the American people

PROTECTING WORKER’S RIGHTS • Legislation such as the Wagner Act and the Fair Labor Standards Act set standards for wages and hours, banned child labor, and ensured the rights of workers to organize and to bargain collectively

SOCIAL SECURITY • assumed the federal government has some responsibility for the social welfare of its citizens • Social Security Act provides old age insurance, unemployment benefits, and aid to people with dependent children or people with disabilities

THE ENVIRONMENT • Rural Scene • farm legislation controlled crop surpluses • loans helped to support farmers • The Environment • Roosevelt was highly committed to conservation • the Civilian Conservation Corp planted trees, created trails, and helped to fight forest fires. • the Soil Conservation Service taught how to keep soil healthy • the Tennessee Valley Authority helped bring power to the Tennessee River Valley, as well as help prevent floods

ESSENTIAL QUESTION How successful do you think Franklin Roosevelt was as a president? Support your answer. Answer the question in three complete sentences in your summary section.

THE GREAT DEPRESSION AND NEW DEAL OBJECTIVE 1. understand the causes and consequences of the Great Depression 2. understand the impact of FDR’s New Deal legislations on the American nation