Chapter 15 – The Great Depression and the New Deal

Franklin D. Roosevelt (32nd)

• Appealed to the common man, especially southerners, powerful speaker

• Surrounded himself with the “Braintrust”- expert advisors

• He used radio “fireside chats” to talk to the American people.

• He said, “The only thing we have to fear

is fear itself”

What Challenges Faced FDR?

• Economy was in total collapse• Banks Closed• People are reluctant to invest or

deposit money• Wages are low• Decline in value of agricultural

commodities• Unemployment reigns

How did FDR respond?

• FDR called an emergency session of Congress for 100 Days…

• Implemented the NEW DEAL:–Extended government’s role in

regulating the economy

–Restored consumer confidence

Goals Of New Deal- “3 R’s”

• Relief- from hunger, foreclosure, and suffering

• Recovery- employment, increase consumer spending

• Reform- banking practices, stock exchange, labor and business practices

FDR Created Alphabet Agencies

Banking & Investment

• Emergency Banking Act- kept banks closed until safe to open

• Federal Depositor’s Insurance Corporation (FDIC)- insured all deposits up to $5,000

Agricultural Adjustment Administration (AAA)

• Encouraged crop diversification • Paid farmers to leave land fallow• Destroyed livestock and crop surpluses

(infuriated many)• It hurt more than it helped and was later

declared unconstitutional.

Civilian Conservation Corps (CCC)

• Employed over 2 million single men

• Earned $ and sent home

• Lived in camps(free room and board)

• Built roads, bridges, parks, etc.

Tennessee Valley Authority (TVA)

• Built bridges and dams(9)

• Provided flood control

• Produced fertilizer

• Gave hydroelectric power to a very poor region

Rural Electrification Administration (REA)

• Less than 10% of rural households had electricity

• REA installed power lines to more than 225,000 homes

Works Progress Administration (WPA)

• Largest New Deal agency- $10 billion

• Employed 8 million workers

• Constructed roads, buildings, bridges

• Employed actors, musicians, artists, writers

Social Security Administration (SSA)

• Retirement pension for elderly

• Helped disabled and accident victims

• Unemployment assistance

• Deducted from paycheck

• What are the current concerns about SS?

Housing Assistance

• Federal Housing Administration (FHA)

• United States Housing Authority (USHA)

Labor

• Wagner Act- strengthened union’s rights

• Fair Labor Standards Act- banned child labor, set minimum wage, overtime pay

Keynesian Economics

• John Maynard Keynes-British economist

• Gov’t gives direct intervention and deficit spending during times of economic hardship in order to stimulate economic recovery/growth

• Government spending exceeded tax base

• Deficit reached $5 billion under FDR

Minorities and the New Deal

• Indian Reorganization Act

•Gov’t stopped selling tribal lands

•Tribes could elect tribal councils• Did not address discrimination against

African Americans

American Liberty League

Vocal opponents of the FDR & New Deal

• Al Smith

• Father Charles Coughlin

• Dr. Townsend

• Huey Long- Gov. of Louisiana, advocated income redistribution, “Share Our Wealth” societies

Supreme Court v. New Deal

• New Deal programs were challenged in the Supreme Court and some agencies were found unconstitutional.

FDR’s Response

• FDR wanted to appoint 6 new Supreme Court Justices.

• Congress was furious and stopped him, felt he was overstepping his power

• Finally, a S.C. Justice resigned and FDR appointed Hugo Black (D-AL)

• This shifted balance in FDR’s favor• Over the next few years, 7 other

Justices resigned

FDR & the Supreme Court

Labor v. Capital

• Union membership grew, strikes resulted

• American Federation of Labor (AFL) and Congress of Industrial Organizations- (CIO) organized.

Major Strikes

• General Strike of textile workers (’34)- 400,000 workers strike

• Flint Sit-Down Strike- workers protest GM, workers sit-down at work and refuse to leave, draws a crowd of over 5,000 and in turn violence erupts with police

• Memorial Day Massacre(‘37)- Steel workers in Chicago strike, 10 killed and 90 injured by police

Flint Sit-Down Strike

Praise of the New Deal

• Helped banking practices• Helped regulate security exchange• Stimulated Industry• Employed Millions• Empowered Unions• Set minimum wage• Prohibited child labor• Encouraged crop diversification

Criticism of New Deal

• Unemployment remained high- >15%

• Many people still suffered….

• DID NOT END THE DEPRESSION!

Popular Culture of the 1930’s

• Influenced by Depression, provided entertainment and escapism

Movies

• Over 60% of Americans attended theaters weekly ($.25)

• Marx Brothers (video)

• “Gone With the Wind”

• Gangster films- “Little Caesar”

The Arts reflect history…..

Literature

• Same writers as the 1920’s

• John Steinbeck- Grapes of Wrath

• Margaret Mitchell- Gone With the Wind

• Richard Wright- Native Son

• Nora Zeale Hurston- Their Eyes Were Watching God

• Dale Carnegie- How To Win Friends and Influence People

Radio

• Over 80% of Americans owned radios

• Listened to FDR’s “Fireside Chats”, news, and programs

• The Lone Ranger

• The Green Lantern

• Orson Welles- “War of the Worlds”

Comics

• Superman

• Batman

• Dick Tracy

• Little Orphan Anne

• Dr. Seuss

Music

• People wanted music that made them feel GOOD

• Duke Ellington- “It Don’t Mean a Thing if it Ain’t Got That Swing”

• Louis Armstrong

• Glenn Miller Orchestra

• Shirley Temple (“Good Ship Lollipop” clip)

• But music reflected their hard times… (ex. Blues)

• Folk/protest music became popular – Woody Guthrie

Grant Wood- American Gothic

Edward Hopper- Nighthawks

Grandma Moses

Horace Pippin

Alexander Hogue-Avalanche By Wind

Photography

“Migrant Mother”Dorothea Lange