FDR & The New DealFDR & The New Deal

Lack of Confidence Lack of Confidence in Banksin Banks– Banks failed due to Banks failed due to

poor investments and poor investments and panic by the publicpanic by the public

Low Farm PricesLow Farm Prices– Farmers overproduced Farmers overproduced

cropscrops

Massive Massive UnemploymentUnemployment– Factory closings, poor Factory closings, poor

economy caused 25% economy caused 25% unemployment rateunemployment rate

Bank holidayBank holiday – closing of the banks to closing of the banks to

stop the panicstop the panic– FDIC (insured FDIC (insured

deposits)deposits)

AAAAAA – Paid farmers NOT to Paid farmers NOT to

grow productsgrow products

PWA, CCC, WPAPWA, CCC, WPA– Government public Government public

works projects created works projects created jobs & paychecks jobs & paychecks

FDR & The New DealFDR & The New Deal

Poverty in the Poverty in the Tennessee River Tennessee River ValleyValley– Valley was hit hardest, Valley was hit hardest,

massive poverty massive poverty

Mortgage Mortgage ForeclosuresForeclosures– Farms & homes were Farms & homes were

foreclosed onforeclosed on

Health Care ProblemsHealth Care Problems– Little medical insuranceLittle medical insurance– Poor & elderly received Poor & elderly received

little health care little health care

TVA TVA – Built dams to create Built dams to create

electric powerelectric power– Set up schools & health Set up schools & health

care facilitiescare facilities

HOLCHOLC – Loaned money at low Loaned money at low

interest to help people interest to help people make mortgage paymentsmake mortgage payments

SSA, FERASSA, FERA– Social Security gave Social Security gave

pensions to elderly, TVA pensions to elderly, TVA set up healthcare systems, set up healthcare systems, many hospitals were built many hospitals were built

FDR & The New DealFDR & The New Deal

Lack of Confidence in Lack of Confidence in the Stock Marketthe Stock Market– After the crash of 1929, After the crash of 1929,

people feared investing people feared investing in the stock marketin the stock market

– Business lost the capital Business lost the capital needed to expandneeded to expand

– Without economic Without economic expansion, the economy expansion, the economy continued to suffer continued to suffer

– Unemployment Unemployment remained high 25% remained high 25%

SEC SEC – Security & Exchange Security & Exchange

CommissionCommission– Supervised the stock Supervised the stock

marketmarket– Eliminated dishonest Eliminated dishonest

practicespractices– Limited “margin” buyingLimited “margin” buying

How did FDR’s Response to the Depression How did FDR’s Response to the Depression Differ from Herbert Hoover’s?Differ from Herbert Hoover’s?

Herbert HooverHerbert Hoover– Created limited public Created limited public

works programsworks programs– Relied on charities to Relied on charities to

provide help for poor, provide help for poor, elderly, sickelderly, sick

– Business would recover Business would recover on its own (business on its own (business cycle)cycle)

– Ordered military to clear Ordered military to clear the BONUS ARMY (WWI the BONUS ARMY (WWI Vets) out of their Vets) out of their Washington DC camps Washington DC camps

Franklin D. RooseveltFranklin D. Roosevelt– Created MASSIVE Created MASSIVE

public works programspublic works programs– Provided direct Provided direct

government aid to poor, government aid to poor, elderly, sick elderly, sick

– Increased government Increased government regulation of business, regulation of business, assistance to business assistance to business & farmers& farmers

– Greatly increased Greatly increased government involvement government involvement in the economy, in the economy, people’s lives people’s lives

Do Now!Do Now!How did FDR’s How did FDR’s New New DealDeal help Americans help Americans through the Depression?through the Depression?– Under the New Deal, the Under the New Deal, the

government directly government directly provided:provided:

Public works jobsPublic works jobsMoney and healthcare to Money and healthcare to the needy and sickthe needy and sickSupport to banks and stock Support to banks and stock market regulationmarket regulationHelp for farmersHelp for farmersHelp to homeownersHelp to homeowners

From the beginning a number of Americans opposed the New Deal. Many of these

critics wanted the government to do more. Others wanted it

to do less.

Who were the New Deal’s political opponents?

Senator Huey Long (D)

FDR did not do enough to help the poor

The Liberty League

(a group of Republicans)

Believed that the New Deal created too much interference in peoples

lives

Political Opposition to the New Deal Political Opposition to the New Deal

Huey Long “Share the Huey Long “Share the Wealth”Wealth”– The poor needed more The poor needed more

helphelp– Heavy taxes on the Heavy taxes on the

richrich– Would use tax money Would use tax money

to give every family a to give every family a house, a car, and a house, a car, and a decent incomedecent income

– The poor found this The poor found this VERY appealingVERY appealing

The Liberty LeagueThe Liberty League– FDR went too farFDR went too far– Made the government Made the government

too big and intruded too big and intruded too much in peoples too much in peoples liveslives

– Feared the Feared the government would government would take away basic take away basic American freedomsAmerican freedoms

Supreme Court Opposition to the Supreme Court Opposition to the New DealNew Deal

The Supreme Court ruled that many parts The Supreme Court ruled that many parts of the New Deal were unconstitutionalof the New Deal were unconstitutional– Overturned nine New Deal laws stating that Overturned nine New Deal laws stating that

the President had overstepped his authoritythe President had overstepped his authority– The Court believed that FDR had upset the The Court believed that FDR had upset the

balance of power among the 3 branches of balance of power among the 3 branches of government. government.

FDR believed that the Supreme Court hurt FDR believed that the Supreme Court hurt his ability to lead the nationhis ability to lead the nation

FDR’s Plan to Expand the CourtFDR’s Plan to Expand the Court

FDR proposed raising the number of FDR proposed raising the number of Supreme Court justices from 9 to 15Supreme Court justices from 9 to 15

Critics accused FDR of trying to “pack” the Critics accused FDR of trying to “pack” the court and increase presidential powercourt and increase presidential power

FDR’s FDR’s “court packing”“court packing” plan was not passed plan was not passed

Were FDR’s critics correct?

Would packing the court increase presidential power too much?

Conclusion:Conclusion: Why did some Why did some Americans object to the New Deal?Americans object to the New Deal?

Some felt the poor needed more help at Some felt the poor needed more help at the expense of the richthe expense of the rich

Others believed government was too big, Others believed government was too big, too intrusive, and spending too much too intrusive, and spending too much moneymoney

Supreme Court felt that the President Supreme Court felt that the President overstepped his authorityoverstepped his authority

How Did How Did DroughtDrought, and Dust Storms Compound , and Dust Storms Compound Depression Era Problems for Farmers?Depression Era Problems for Farmers?

Where was the Where was the Dust BowlDust Bowl??

What caused the What caused the Dust BowlDust Bowl disaster? disaster?

Severe drought (no rain)Severe drought (no rain)

Overgrazing by cattleOvergrazing by cattle

Over plowing by farmersOver plowing by farmers

High windsHigh winds– All these conditions All these conditions

destroyed the destroyed the grassesgrasses that that held the soil in place held the soil in place

– These storms were called These storms were called ““Black BlizzardsBlack Blizzards””

– Parts of the Parts of the Great PlainsGreat Plains became known as the became known as the Dust Dust Bowl Bowl

Scenes from the Scenes from the Dust BowlDust Bowl Dust Storm over OklahomaDust Storm over Oklahoma

Scenes from the Scenes from the Dust BowlDust Bowl Dust Storm over TexasDust Storm over Texas

Scenes from the Scenes from the Dust BowlDust Bowl Dust Storm over Kansas Dust Storm over Kansas

Who did the drought hit the hardest?Who did the drought hit the hardest?Migrant workersMigrant workers– Poor farmers from Poor farmers from OklahomaOklahoma

and and ArkansasArkansas headed west headed west to escape the to escape the Dust BowlDust Bowl

– Many moved to the Many moved to the west west coastcoast to find jobs on farms to find jobs on farms

– They were not welcomed by They were not welcomed by localslocals

– Locals feared that the Locals feared that the migrants would take local migrants would take local jobsjobs

– Migrant workers lived in poor Migrant workers lived in poor conditions conditions (tents, no water or (tents, no water or electricity)electricity)

Conclusion:Conclusion: How did drought, and dust storms How did drought, and dust storms compound depression era problems for farmers?compound depression era problems for farmers?

Farmers were already struggling through Farmers were already struggling through the economic depression the economic depression (due to (due to overproduction of crops)overproduction of crops)Lack of rain and the overuse of land made Lack of rain and the overuse of land made farmers problems worsefarmers problems worseConditions forced farmers of the Great Conditions forced farmers of the Great Plains to migrate west where they were Plains to migrate west where they were unwelcome and faced an even harder lifeunwelcome and faced an even harder lifeMany were left displaced/homeless as Many were left displaced/homeless as farm land became useless farm land became useless

How do AmericansHow do Americans “escape”“escape” from reality today?from reality today?

Listen to musicListen to music

Go to the moviesGo to the movies

Play sports/video gamesPlay sports/video games

DaydreamDaydream

Get in car and driveGet in car and drive

Go for a long walkGo for a long walk

Method of EscapeMethod of Escape “The Movies” “The Movies”

The MoviesThe Movies

The Movies The Movies

Why were “the movies” a good Why were “the movies” a good way to “escape”?way to “escape”?

Provided a means of optimism & an Provided a means of optimism & an opportunity to forget worries opportunity to forget worries

During the 1930’s the first color movies During the 1930’s the first color movies came out & inspired imagination came out & inspired imagination

Movies helped people to escape from Movies helped people to escape from their dreary lives & cheer uptheir dreary lives & cheer up

How did How did “Radio”“Radio” help people to help people to “escape”“escape” ? ?

Comedy, Music, Dramas helped people Comedy, Music, Dramas helped people to forget their troublesto forget their troubles

Continuing Dramas told stories over Continuing Dramas told stories over weeks or months were sponsored by weeks or months were sponsored by “Soap Companies”“Soap Companies” became known as became known as “Soap Operas”“Soap Operas”

Conclusion:Conclusion:

Why were movies and radio Why were movies and radio important to people during the important to people during the depression?depression?– Provided escape from the economic and Provided escape from the economic and

psychological hard times of the Great psychological hard times of the Great DepressionDepression