The Great Depression The Great Crash An initial

The Great Depression

The Great Crash ■ An initial stock market crash on Oct 24, 1929 (Black Thursday) led to a catastrophic drop in stocks on Oct 29 (Black Tuesday) –Panicked investors sold stocks, causing stock prices to plummet –Banks lent less money, factories produced less, workers were fired or paid less → consumers had less money to spend → factories & businesses closed

Unemployment, 1929 -1942 This downward spiral continued for 4 years; By 1932 unemployment was at 25%

Employment Agencies & Relief-Check Lines

These 4 potatoes are Christmas Dinner

Where’s daddy?

“Hoovervilles” & “Hoover Flags”

Hoover Struggles to Fight the Depression

Hoover and Voluntarism ■ Hoover’s initial response was to “Rugged individualism” reassure Americans that prosperity would return ■ Hoover rejected bold gov’t action & called for volunteerism among charities, local gov’t, & business ■ As the depression worsened, Hoover called for gov’t projects like the Reconstruction Finance Corps (RFC) which loaned money to failing businesses

The Hoover administration initiated job-creation programs, like building the Hoover Dam

Hoover and Voluntarism ■ In 1932, President Hoover suffered two final blows: –When 22, 000 war veterans marched to the capital to demand their WW 1 bonus checks early, Hoover ordered this Bonus Army to be forcibly removed –The steady rise of bank failures led to a complete collapse of the U. S. banking system

Bonus Army Douglas Mac. Arthur Dwight Eisenhower

Bank Failures, 1929 -1933

Fighting the Depression ■ The inability of Republicans to resolve the economic depression opened the door for a Democratic takeover in politics ■ Once in power, Democrats succeeded in relieving some suffering, restored hope, & created an unprecedented level of gov’t intervention in the process

Franklin Roosevelt & the First New Deal (1933 -1935)

The Election of 1932 ■ The depression made Hoover the victim, but Franklin Roosevelt emerged as the “savior”: –In the 1932 election, FDR was able to unite the rural & urban factions of the Democratic party & won a landslide victory –FDR appealed to Protestants & Catholics, farmers & workers, native-born & immigrants

The Hundred Days ■ When FDR took over in 1933, the FDR for “broad power of U. S. asked economy wasexecutive on the brink that would be given to me if we were in collapse: fact invaded by a foreign foe. ” –Unemployment was at 25% – 38 states had total bank failure ■ FDR requested from Congress broad executive power to begin his “New Deal” program of economic relief, recovery & reform

“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. ”

New Deal ■ Relief: for people cut off ■ Recovery: for business and economy ■ Reform: of American economics and institutions

The Hundred Days st hundred Banks (notdays, nationalized); ■ In were his 1 regulated FDR Now, the FDIC insures the economic system was reformed st began up histo 1$100, 000 New Deal (1934 -35) deposits (not drastically changed) ■ FDR’s 1 st order of business was to Emergency Banking in Actbanking: of 1933 restore confidence –Declared a 4 -day bank holiday: closed or funded weak banks & opened new gov’t-aided banks –Glass-Steagall Act created the FDIC which guaranteed all bank deposits over $5, 000

“Capitalism was saved in eight days”

Fireside Chats

The Hundred Days ■ The greatest success of the First New Deal was its ability to offer relief to unemployed citizens via the Reconstruction Finance Corps –Modest relief checks were doled to 15% of Americans –Federal Emergency Relief Act (FERA) pumped $500 million into state welfare programs

The Hundred Days ■ Relief efforts of the First New Deal created more “alphabet agencies” –Civilian Conservation Corps (CCC) employed urban men –Civilian Works Admin (CWA) hired 4 million men & women –Agricultural Adjustment Admin (AAA) subsidized farmers

CCC workers paved roads, planted trees, built bridges

CWA Creating drainage system for an airfield Dredging a lake

AAA

Percentage of American Families Accepting Government Relief in 1933

National Recovery Administration The NRA ended up being too bureaucratic; business cooperation gave way to self-interest & greed

SEC (Securities and Exchange Commission) ■ The U. S. Securities and Exchange Commission is a federal agency which holds primary responsibility for enforcing the federal securities laws and regulating the securities industry, the nation's stock and options exchanges, and other electronic securities markets in the United States.

The Tennessee Valley Authority Critics claimed the TVA was too socialistic; Competing electric companies attacked the TVA for selling cheaper electricity & eliminating competition

The Dust Bowl (1931 -1939) worsened the “Okies” & “Arkies” Areas Affected by the Dust Bowl drought effects of the Depression

Franklin Roosevelt & the Second New Deal (1935 -1938)

Father Charles Coughlin

Dr. Francis Townsend

Challenges to FDR ■ Louisiana Senator Huey Long proposed his Share the Wealth plan to: –Take from the rich—a 100% tax on all personal income over $1 million –Give to the poor—give every American $2, 500 per year

But when they've got Huey Long everything How on many men ever God's loving went to a barbecue & Now, how are you earth thatwould they can eat & they let one man going to feed the can wear & they can live in, & take off the table balance of the people? all that their children can live in what's intended for What's Morgan & & wear & eat, & all of their 9/10 th of the people to Baruch & Rockefeller children's eat? children can use, then The only way & Mellon going to Huey Long threatened to rundo& we've gotyou'll to call Mr. Morgan ever be able to rd with all that grub? They as a. Mellon 3 Party but Mr. an candidate Mr. Rockefeller feed the balance of the can't eat it, they can't was assassinated 1935 here, back and say: “Comeinback people is to make that wear the clothes, they put that stuff back on this table man come back & can't live in the houses. here thatbring you took away from back some of here that yougrub don'tthat need. Leave he ain't something else for the got no business with! American people to consume. ” “The Kingfish”

WPAcared Public Work Project WPA less about what got done as long as work was done: built hospitals, schools, airport fields… but also moved leaf piles & dug ditches

WPA Initiatives

WPA Health Initiatives

WPA Health Initiatives

WPA Arts Project

WPA Community Murals Construction of the Dam by William Gropper

WPA Music Projects

WPA Theater Projects

WPA Writers Projects

WPA Travel Guides

WPA Oral History Projects: Interviews with former slaves

■ Liberal critics argued that SS did not do enough ■ Conservative critics argued that SS violated individualism & self -reliance ■ Social Security created America’s 1 st welfare program to help individuals

Success of the New Deal Programs?

The gov’t assumed For the 1 st time, the Conclusions gov’t used Keynesian responsibility for the ■ The New Deal was of 3 healthmade of the up nation's economics (deficit economy&&reform citizens spending gov’t recovery, parts: &relief, spending to stimulate The New Deal signaled – New Deal was most successful the economy) the beginning of the in providing immediate relief to welfare state ease economic suffering –The New Deal did not bring economic recovery or an end to the depression –The New Deal brought major reforms that changed America