{ Germany s Great Depression (Unemployment) { Japan s Great Depression (Unemployment)

{{

GermanyGermany’’s Great Depressions Great Depression(Unemployment) (Unemployment)

GermanyGermany’’s Great Depressions Great Depression(Unemployment) (Unemployment)

{{

JapanJapan’’s Great Depressions Great Depression(Unemployment) (Unemployment)

JapanJapan’’s Great Depressions Great Depression(Unemployment) (Unemployment)

{{

Great BritainGreat Britain’’s Great s Great DepressionDepression

(Unemployment) (Unemployment)

Great BritainGreat Britain’’s Great s Great DepressionDepression

(Unemployment) (Unemployment)

{{

United States Great DepressionUnited States Great Depression(Unemployment)(Unemployment)

United States Great DepressionUnited States Great Depression(Unemployment)(Unemployment)

5

HooverFDR

RooseveltRoosevelt’’ss 100 days100 days was very was very successful….FDR and Congress went successful….FDR and Congress went

to work providing for direct to work providing for direct reliefrelief, , recoveryrecovery andand reformreform. .

From March of 1933 to June of 1933, From March of 1933 to June of 1933, Roosevelt sentRoosevelt sent 15 proposals15 proposals to to

Congress and all Congress and all 15 were adopted15 were adopted

Congress and President Congress and President tried tried anything reasonableanything reasonable to overcome the to overcome the

Great Depression.Great Depression.

100 days100 days

NEW DEAL CARTOONNEW DEAL CARTOON

Govt. programs which provided direct relief to suffering Americans through govt.

spending……… Renew democracy Restore confidence in the banking Stimulate economy Put people back to work. Restore self confidence

ReliefRelief:: ease suffering of the needyRecovery:Recovery: begin economic growth

ReformReform:: help prevent future economic crises

How? FDR’s 3 R’sHow? FDR’s 3 R’s

Social EngineersSocial EngineersBrain Trust

FDRs Advisers and “Brain Trust”FDRs Advisers and “Brain Trust”

Finance: Baruch Politics: Howe Professors: Tugwell Interior: Ickes

Labor: Perkins Agriculture: Wallace Treasury: Morgenthau Jr.

10

• Series of radio Series of radio addresses by FDR addresses by FDR

• 30 total between 30 total between 1933 to 19441933 to 1944

• FDR used these to FDR used these to calm American calm American people down.people down.

• CLICKCLICK on the radio on the radio to link to hear the 1to link to hear the 1stst chat on the Bank chat on the Bank CrisisCrisis

People w/d $$; banks People w/d $$; banks failfail

““Banking Holiday”Banking Holiday” Emergency Banking Emergency Banking

ReliefActReliefAct Fireside ChatFireside Chat Glass-Steagall ActGlass-Steagall Act

Creates the FDICCreates the FDIC ConservativeConservative An example of An example of

Recovery and ReformRecovery and Reform

The Banking CrisisThe Banking Crisis

12

1.1. ReliefRelief Help people right away

2.2. RecoveryRecovery Get the US out of the

Depression

3.3. ReformReform Make sure another

depression does not happen

Goals of New Deal ProgramGoals of New Deal Program

13

New DealNew Deal:: ReliefRelief

Federal Emergency Relief Federal Emergency Relief Association (FERA)Association (FERA)

Civil Works Administration (CWA)Civil Works Administration (CWA) Public Works Administration (PWA)Public Works Administration (PWA) Civilian Conservation Corps (CCC)Civilian Conservation Corps (CCC) Farm Credit Association (FCA)Farm Credit Association (FCA) Homeowners Loan Corporation Homeowners Loan Corporation

(HOLC)(HOLC) Tennessee Valley Authority (TVA)Tennessee Valley Authority (TVA)

14

New DealNew Deal:: RecoveryRecovery

Works Progress Works Progress Administration (WPA)Administration (WPA)

National Recovery National Recovery Administration (NRA)Administration (NRA)

Agricultural Adjustment Act Agricultural Adjustment Act (AAA)(AAA)

National Youth Administration National Youth Administration (NYA)(NYA)

Federal Housing Act (FHA)Federal Housing Act (FHA)

15

New DealNew Deal:: ReformReform

Federal Deposit Insurance Federal Deposit Insurance Company (FDIC)Company (FDIC)

Securities and Exchange Securities and Exchange Commission (SEC)Commission (SEC)

Wagner Act (NLRB)Wagner Act (NLRB) Social Security Social Security

AAA / 1933AAA / 1933 Agricultural Adjustment ActAgricultural Adjustment Act

alphabetalphabet

RECOVERYRECOVERY: : Begin Economic Begin Economic GrowthGrowth

•Protected farmers from price dropsprice drops and over productionover production..• US Govt. Paid farmersPaid farmers (subsidies)

•not to grow wheat, cotton, corn, hogs, rice, tobacco, dairy products•AAA told farmers how much they should produce

{{ {{Yay!Yay!

Rise in prices after Rise in prices after 19331933

1933: $2 billion1933: $2 billion 1935: $5 billion1935: $5 billion

Boo!Boo! Favored large Favored large

landownerslandowners Tenants & Tenants &

sharecroppers sharecroppers kicked off landkicked off land

S. Court finds AAA S. Court finds AAA unconstitutional in unconstitutional in 19361936

Modified in 1936 Modified in 1936 and 1938and 1938

Mixed ResultsMixed Results

NIRA / 1933NIRA / 1933 National Industrial Recovery ActNational Industrial Recovery Act

alphabetalphabet


•Created NRA to enforce codes of fair competition, minimum wages, and to

permit collective bargaining of workers.

Companies would cooperateCompanies would cooperate Set limits on productionSet limits on production PricesPrices Codes of fair competitionCodes of fair competition

In exchange, labor would get In exchange, labor would get concessionsconcessions Max hoursMax hours Minimum wagesMinimum wages Collective bargainingCollective bargaining

NRA: The IdealNRA: The Ideal

Codes poorly writtenCodes poorly written Huge bureaucracyHuge bureaucracy Large producers dominated Large producers dominated

code-writing processcode-writing process No enforcement mechanism to No enforcement mechanism to

enforce Section 7(A)enforce Section 7(A) Production actually decreasedProduction actually decreased 1935: Supreme Court declares it 1935: Supreme Court declares it

unconstitutionalunconstitutional

NRA: The RealityNRA: The Reality

TVA / 1933TVA / 1933 Tennessee Valley AuthorityTennessee Valley Authority

•Federal government built a series of dams to prevent flooding and sold

electricity. •First public competition with

private power industries.alphabetalphabet


TVA MAPTVA MAP

FERA / 1933FERA / 1933Federal Emergency Relief ActFederal Emergency Relief Act

Distributed $500 million of direct aid to unemployed workers such as

food, clothing and grants of money to cities.

alphabetalphabet

RELIEFRELIEF: : Ease Suffering of the Ease Suffering of the NeedyNeedy

Repaired bridges, built Repaired bridges, built highways, constructed public highways, constructed public buildingsbuildings

W/I 30 days: 2.6 million men and W/I 30 days: 2.6 million men and women employedwomen employed

1934: 4 million1934: 4 million

Civil Works Civil Works Administration (CWA): Administration (CWA): 1933-341933-34

CCC / CCC / 1933 to 19421933 to 1942Civilian Conservation CorpsCivilian Conservation Corps

•Sent 3 million young men to work camps to build bridges, replant forests and other

conservation tasks. •Develop job skills and improve environment.

• Removed surplus of workers from cities, provided healthy conditions for boys,

provided money for families.

alphabetalphabet


Civilian Conservation CorpsCivilian Conservation Corps

32

HOLC / 1933HOLC / 1933Home Owners Loan CorporationHome Owners Loan Corporation

Prevented mortgage foreclosures. US Govt. bought up mortgages and

refinanced them so that homeowners could pay their

mortgages.

alphabetalphabet


Regulated stock market and restricted margin buying, and frauds.

alphabetalphabet

REFORMREFORM:: Prevent Another Depression Prevent Another Depression

SEC / 1933SEC / 1933

Securities and Exchange Securities and Exchange CommissionCommission

100 days

Criticisms of New DealCriticisms of New DealUS government and President too powerfulViolated laissez faireSupreme Court declared NIRA and AAA unconstitutionalCritics:

American Liberty LeagueFather Charles CoughlinDr. Francis TownsendHuey Long

Deficit spending: Govt. spends $$$ to stimulate the economy and help people even if it means US Govt. goes into debt.Welfare state----Created a population of Americans who relied on the US Govt. to live

39

LibertyLiberty LeagueLeague FDR had gone FDR had gone TOO FARTOO FAR

with the New Deal.with the New Deal.

Interfering with business Interfering with business and peoples lives.and peoples lives.

Government was taking Government was taking away freedoms from away freedoms from Americans.Americans.

•Economic systemEconomic system based on cooperation rather than competition

• Believes in government ownershipgovernment ownership of business and capital

•Government controls productioncontrols production and distributiondistribution of goods.

•Opposite of laissez fairelaissez faire and capitalismcapitalism

•Believed an international conspiracy of bankersinternational conspiracy of bankers existed and FDR was influenced by them.

•He called for the nationalization of banks and utilitiesnationalization of banks and utilities.(US Govt. controls banks, Socialism)Socialism)

•Fascist; Anti-Semitic overtones.

•A Roman CatholicCatholic priest.

•Radio Priest in Detroit Michigan.

•Criticized FDR in weekly radio program.

•10 million listeners.

•Criticized FDR’s farm program

•Spending all $200 would also be required to boost economic demand.

•Townsend Clubs created all over the nation.

•Influenced FDR’s creation of Social SecuritySocial Security

•He wanted the government to help older citizens.

•Retired California Physician.

•Suggested a $200 per month pension$200 per month pension for people over 60.

•Open jobs for the younger unemployed.

44

Senator HueySenator Huey LongLong FDR FDR waswas NOT NOT doing enough doing enough

for the for the poorpoor.. Long pushed his Long pushed his ““ShareShare Our Our

WealthWealth”” program. program. Take all income over Take all income over

$1,000,000 to give:$1,000,000 to give: HouseHouse CarCar Annual SalaryAnnual Salary For all Americans For all Americans

{{

The Second New The Second New Deal & the Deal & the Redefining of Redefining of LiberalismLiberalism

1935-381935-38

Emphasis onEmphasis on Social justiceSocial justice Social safety netSocial safety net

Use the power of the govt to Use the power of the govt to guarantee economic security and guarantee economic security and welfare of old, disabled and welfare of old, disabled and unemployedunemployed

Welfare stateWelfare state

Second New DealSecond New Deal

Reaffirmed labor's right to unionize, prohibited unfair labor

practices, and created the National Labor Relations Board.

alphabetalphabet


Wagner Act / 1935Wagner Act / 1935National Labor Relations ActNational Labor Relations Act

1934: NIRA influence1934: NIRA influence Industrial Unionism; anti-AFLIndustrial Unionism; anti-AFL

All workers in one industry should be in 1 All workers in one industry should be in 1 union, regardless of skillunion, regardless of skill

John Lewis: walks out of AFLJohn Lewis: walks out of AFL 1936: Congress of Industrial 1936: Congress of Industrial

OrganizationOrganizationss Women, blacksWomen, blacks Textiles, laundries, tobaccoTextiles, laundries, tobacco

Labor MilitancyLabor Militancy

Sit Down StrikesSit Down Strikes Dec. 1936Dec. 1936 GM Detroit plantsGM Detroit plants By Feb 1937: 17 GM plantsBy Feb 1937: 17 GM plants Female supporters sent Female supporters sent

food/clothingfood/clothing Ignored police and court Ignored police and court

injunctionsinjunctions Governor and federal govt Governor and federal govt

refused to intervenerefused to intervene GM relents; recognizes GM relents; recognizes

UAWUAW

Memorial Day Massacre Memorial Day Massacre 19371937

1937: 4700 strikes1937: 4700 strikes 80% settled in favor of unions80% settled in favor of unions 8 million union members 8 million union members

(1932: 3 million)(1932: 3 million) By 1941: 10 million included By 1941: 10 million included

workers of Little Steelworkers of Little Steel

Unions win outUnions win out

It provided retirement pensions, unemployment insurance, aid to

blind, deaf, disabled, and dependent children.

alphabetalphabet


SSA / 1935SSA / 1935 Social Security ActSocial Security Act

54

Social Social SecuritySecurity

Act of 1935 Act of 1935

55

Social Security

UnemploymentInsurance

Old AgePension

Dependent Families

+Disabled

Classical Liberalism Classical Liberalism (Conservatives)(Conservatives) Individual liberty is foundation of Individual liberty is foundation of

democracydemocracy Free market policiesFree market policies Weak govtWeak govt

New Deal Liberalism (Liberals)New Deal Liberalism (Liberals) To preserve individual liberty, govt To preserve individual liberty, govt

must assist needy and guarantee must assist needy and guarantee basic welfare of pplbasic welfare of ppl

New Deal LiberalismNew Deal Liberalism

Works Progress Works Progress AdministrationAdministration

{{ Harry HopkinsHarry Hopkins 110K public buildings110K public buildings 600 airports600 airports 500K miles of roads500K miles of roads 100K bridges100K bridges 2.1 million workers2.1 million workers

WPAWPA• Federal Writers Project• Federal Arts Project• Federal Music Project• Federal Arts Project• National Youth Administration

67

Court Packing….Court Packing….

The Supreme Court struck The Supreme Court struck down several New Deal laws as down several New Deal laws as unconstitutional (NRA and unconstitutional (NRA and AAA)AAA)

FDR wanted to increase the FDR wanted to increase the size of the court from 9 to 15.size of the court from 9 to 15. Would appoint justices who were Would appoint justices who were

pro-New Dealpro-New Deal Minimum-wage law, Wagner Act Minimum-wage law, Wagner Act

and Social Security Act upheldand Social Security Act upheld Hurt FDR w/ southern Hurt FDR w/ southern

Democrats and conservativesDemocrats and conservatives

68

FDR and the Supreme CourtFDR and the Supreme Court

Keynesian EconomicsKeynesian Economics

John Maynard Keynes John Maynard Keynes (British)(British)

Govt intervention can Govt intervention can smooth out high and lows smooth out high and lows of business cycleof business cycle

Deficit spendingDeficit spending Manipulate interest rates Manipulate interest rates

and money supplyand money supply

Limits and Legacies of Limits and Legacies of the New Dealthe New Deal

Remake American capitalism Remake American capitalism (not to be)(not to be)

Federal govt now a mediator Federal govt now a mediator b/w competing interestsb/w competing interests

Govt to intervene when Govt to intervene when necessarynecessary Help/limit the power of groupsHelp/limit the power of groups

““The Broker State”The Broker State”

Not hostile, but not much to Not hostile, but not much to advance themadvance them

Reinforced patterns of Reinforced patterns of discriminationdiscrimination Less pay, less skilled jobsLess pay, less skilled jobs

““Black Cabinet”Black Cabinet” FDR not willing to lose support FDR not willing to lose support

of Southern Democratsof Southern Democrats

African Americans & the New African Americans & the New DealDeal

Not outright hostile but not Not outright hostile but not much to advance themmuch to advance them

Symbolic gesturesSymbolic gestures Reinforced gender normsReinforced gender norms

Women and the New Women and the New DealDeal

{{ {{WestWest Received more Received more

federal funding federal funding Agricultural pgmsAgricultural pgms Public works pgmsPublic works pgms

Water and powerWater and power

SouthSouth Least developed Least developed

region of countryregion of country Didn’t challenge Didn’t challenge

prevailing racial prevailing racial normsnorms

TVATVA

New Deal in the West and New Deal in the West and SouthSouth

Didn’t revive/reform economyDidn’t revive/reform economy DidnDidn’’t fully embrace govt t fully embrace govt

spending for recoveryspending for recovery Didn’t end the DepressionDidn’t end the Depression DidnDidn’’t alter the distribution of t alter the distribution of

power and wealth power and wealth

New Deal FailuresNew Deal Failures

Helped elevate new groupsHelped elevate new groups Contributed to economic Contributed to economic

development of the West and development of the West and SouthSouth

Increased regulatory functions Increased regulatory functions of the federal govtof the federal govt

Created the basis of the federal Created the basis of the federal welfare statewelfare state

New Deal Impact on New Deal Impact on EconomyEconomy

FDR enhanced the power of FDR enhanced the power of federal govtfederal govt

Presidency became the Presidency became the preeminent center of authoritypreeminent center of authority

Democratic Party dominationDemocratic Party domination American people had greater American people had greater

expectations of govtexpectations of govt

New Deal and American New Deal and American PoliticsPolitics

SocialismGreen PartyCommunism

SocialismGreen PartyCommunism

DemocratDemocrat IndependentReform

IndependentReform

RepublicanRepublican KKK KKK

LEFT CENTER RIGHT LEFT CENTER RIGHT

Anarchy Radical Liberal Moderate Conservative Reactionary Fascist

No GovtNo Govt Dictator Dictator

The New DealNew Deal walked a tightrope between the extreme positions of the left and rightleft and right.

CriticsCritics would claim it was unconstitutional, socialism, anti-laissez faire and went too far to the left.

OthersOthers would claim the New DealNew Deal didn’t go far enough to the left……

Successes of New DealSuccesses of New Deal

100 days

AMERICANS IN 1939 WHO WANTED THE NEW NEW DEALDEAL TO CONTINUE WAS 55%55%….. ….. 37%37%

REGARDED IT AS A BAD INFLUENCE AND WANTED A NEW PRESIDENT…………...

Stimulated the economy

Put people back to work….

Improved morale and self-confidence of the people

US Govt’s. role changes and became directly involved in helping people

WWII ended the Great Depression not FDR’s New Deal

{ Germany s Great Depression (Unemployment) { Japan s Great Depression (Unemployment)

Documents

Transcript of { Germany s Great Depression (Unemployment) { Japan s Great Depression (Unemployment)