Chapter 25: The Great Depression and the New Deal, 1929-1939
Chapter 25 The Great Depression and the New Deal, 1929– 1939 Web.
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Transcript of Chapter 25 The Great Depression and the New Deal, 1929– 1939 Web.
Chapter 25Chapter 25
The Great Depression and the New Deal, 1929–1939
Web
Causes of the Great DepressionCauses of the Great Depression
Stock Market Speculation Buying on margin common Stock prices spiraled out of control
Mistakes by the Federal Reserve Tight money policy in 1930 and 1931 Worsened situation and prevented recovery
Ill-advised tariff
Causes of the Great DepressionCauses of the Great Depression (cont)
Hawley-Smoot Tariff (1930) Increased duties and fostered retaliation by other
countries Seriously curtailed exports, and international trade in
general
Maldistribution of wealth Fostered by Republican tax policies Slowed consumption and prevented consumer-driven
growth
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Income Distribution Before the Great
Depression
Hoover: the Fall of the Self-Made ManHoover: the Fall of the Self-Made Man Hoover’s program
First turned to “associational” principles Turned to more vigorous action when that didn’t work
Moratorium on foreign loan payments Glass-Steagall Act of 1932 Reconstruction Finance Corporation (1932) Home Loan Bank Board (1932)
Could not accept radical solutions, such as deficit spending Reluctant to provide direct aid to individuals
Bonus Army, 1932 World War I veterans sought early payment of promised
bonus Hoover authorized force to eject them from Washington Shocked the nation Contributed to Hoover’s defeat in 1932
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Presidential Election, 1932
The Democratic RooseveltThe Democratic Roosevelt
Franklin Delano Roosevelt (FDR) Governor of New York (1929–1933) Eleanor Roosevelt
Democratic Party divided during 1920s Agrarians favored government regulation of both the
economy and people’s lives Urban ethnics opposed government intervention in
people’s lives but were divided about the efficacy of intervention in the economy
FDR gravitation toward new reform movement of “liberalism” Government should regulate capitalism Government should not tell people how to behave
First New Deal, 1933–1935First New Deal, 1933–1935
Saving the banks Bank holiday and Emergency Banking Act Glass-Steagall Act (1933)
Created Federal Deposit Insurance Corporation Securities Act (1933) and Exchange Act (1934)
Saving the people Federal Emergency Relief Administration (FERA) Civilian Conservation Corps (CCC) Civil Works Administration (CWA) Homeowners’ Loan Corporation (HLC)
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Bank Failures, 1929–1933
First New Deal First New Deal (cont)
Repairing the Economy: Agriculture Agricultural Adjustment Administration (AAA)
Goal was curtailing farm production by paying farmers not to produce
Tenant Farmers and sharecroppers left out Soil Conservation Service (SCS)
Deal with problem of Dust Bowl Supreme Court declared AAA unconstitutional in
1935 Administration replied with Soil Conservation and
Domestic Allotment Act– Took land out of cultivation for conservation
rather than economic reasons
First New Deal First New Deal (cont)
Repairing the Economy: Industry National Recovery administration (NRA)
Goal was to limit production through persuasion and association
Industry-drafted codes for prices, wages and hours Supreme Court declared unconstitutional in 1935
First New Deal First New Deal (cont)
Public Works Administration (PWA) Built bridges, roads, dams, hospitals, schools, airports Helped to spur development in Arizona, California,
Washington
Tennessee Valley Authority (TVA) Government itself would promote economic
development Control flooding, generate electricity, develop industry,
improve transportation
The New Deal and Western development Dam construction central
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Tennessee Valley Authority
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Federal Water Projects in
California Built or Funded by the
New Deal
Political Mobilization, Political Unrest, Political Mobilization, Political Unrest, 1934–19351934–1935 Populist critics of the New Deal
Huey Long (“spread the wealth among all our people”) Father Charles Coughlin and National Union for Social
Justice Francis Townsend and elderly pensions
Labor and the New Deal NIRA supposedly supported collective bargaining Employers’ refusal to follow codes spurred strikes and
violence
Midterm elections of 1934
Political Mobilization, Political Unrest, Political Mobilization, Political Unrest, 1934–19351934–1935 (cont)
Huge victories for Democrats Many radicals sent to Congress
Would help to shape post-1935 New Deal
Rise of radical third parties and political movements Minnesota Farmer-Labor (MFL) Party End poverty in California (EPIC) Growth of Communist Party of America
Second New Deal 1935–1937 Second New Deal 1935–1937 Philosophical underpinnings
Reliance on economic theory of underconsumptionism Route to recovery was boosting consumer
expenditures, not restricting output Supporting unions to push wages up Social welfare put money in people’s pockets Public works projects to create new jobs Government borrowing from private sources would
fund new measures and lead to end of Depression Major measures of the Second New Deal
Social Security Act National Labor Relations Act Rural Electrification Administration Emergency Relief Appropriation Act Works Progress Administration
Second New Deal Second New Deal (cont)
FDR re-elected by landslide Strong anti-corporate rhetoric during campaign Gave Democrats reputation as party of reform and of
common American
Gap between FDR’s Rhetoric and reality Not as radical in practice as his words would have
suggested Receiving significant support from some capitalists
Second New Deal Second New Deal (cont)
FDR’s Advisors Idealistic, dedicated, confident Not all were men of wealth and privilege Important women in administration worked mostly
behind the scenes Frances Perkins
Little commitment in administration for women’s equality
Focused instead on protective legislation Organized labor
Congress of Industrial Organization (CIO) Labor’s Non-Partisan League (LNPL) UAW sit-down strike against GM, 1936 Gained public stature as well as members
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Labor Union Membership 1933–1945
America’s Minorities and the New DealAmerica’s Minorities and the New Deal
Easter and Southern European ethnics Formidable force within Democratic Party Received New Deal aid through programs targeted at
urban areas
African Americans Marian Anderson New Deal did more to reinforce patterns of racial
discrimination than to advance the cause of racial equality
Administration took symbolic steps in support of civil rights but did not make the issue a priority
America’s Minorities and the New America’s Minorities and the New DealDeal (cont)
Mexican Americans Deportation campaign continued from Hoover
administration Not really included in most New Deal programs
Native Americans John Collier at the Bureau of Indian Affairs
Commitment to cultural pluralism Indian Reorganization Act (1934)
Revoked allotment practices Redistributed land to tribes and otherwise fostered
community authority
The New Deal AbroadThe New Deal Abroad
Followed international course after initial flirtation with nationalism Established diplomatic relations with Soviet Union “Good Neighbor” policy with Latin America Reciprocal Trade Agreement Overreaching goal was to stimulate international trade
and boost U.S. exports
Stalemate, 1937–1940 Stalemate, 1937–1940
New Deal losing momentum by 1937 and 1938 Court-packing fiasco
Motivated by political purposes Protect National Labor Relations Act and Social Security Generated firestorm of public opposition Fueled critics organizing the 1938 midterm elections Rendered unnecessary, in any event, by subsequent
events Recession, 1937–1938
Economic improvements in late 1937 caused spending cut backs
Economy slid back into depressed conditions Led to setbacks for Democrats in 1938 elections
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Federal Expenditures and
Surpluses / Deficits 1929–1945
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Discussion QuestionsDiscussion Questions
What were the causes of the Great Depression? What was FDR’s approach in dealing with the
Depression during his first term? Compare and contrast the First and Second New
Deals. Which had more far-reaching success? What role did the New Deal play in the lives of
American minorities? Did it have lasting impact on our society?