Great Depression and New Deal(2)
Transcript of Great Depression and New Deal(2)
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The Great Depression
and New Deal
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Fundamental Causes of
the Depression• Drop in farm prices• Massively uneven distribution
of income
• “Get rich quick” schemes in real
estate and especially in stocks
• Overextension of credit
• Increased inventories of oods• Immediate cause! October "#$#
stock market crash Many consumers in the"#$%s bouht items such as
this ironer on credit
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The Day the Bubble Burst
• October $#& "#$#
• More than "'
million shares
traded in one day• (tock market lost
)*% billion
• +einnin of the
“Great
Depression”
,he tradin floor of the -e. /ork (tock 0xchane in "#$#
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Banking System Collapse
• +anks investedheavily in the
market
• 1ollapse of
market led to
bank failures
• Many depositors
panicked& leadinto even more
bank failures2orried depositors .ait outside a bank hopin to
.ithdra. their savins
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Hoovers !esponse
• 3resident 4oover
over.helmed
• +elieved that private
charity .as best suitedto solve problems
• Most efforts failed
• 5econstruction 6inance
1orporation achieved
some success
3resident 4erbert 4oover
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Hoovervilles
• (ettlements ofshacks inhabited by
transients and
unemployed
• Derisively named
after 3resident
4oover
• Many cities andto.ns had at least
one
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The Bonus "rmy
• 3atman +ill .as tomove up bonus
payments from "#78
to "#**
• 9eterans camped near
the 1apitol to support
the bill
• +ill failed in 1onress• 4oover:s removal of
vets made 4oover
appear heartless
2ith the ;
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Dis#ussion $uestions
"< 2hich of the fundamental causes of the Depression.ould have been the easiest to fix& in your vie.=
0xplain<
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The %le#tion of &'()
• 5epublicans
renominated 4oover
• Democrats nominated
6ranklin D< 5oosevelt• 4oover:s inability to
solve the Depression
became the chief issue
• 6D5 .on in a
landslide
4oover 5oosevelt
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Franklin Delano !oosevelt
• +orn in ">>$• Distant relative of
,heodore 5oosevelt
• Married to 0leanor5oosevelt& ,5:s niece
• 3olitical career mirrored
,5:s
• ?ost "#$% election forvice president
• 3araly@ed in "#$" One of only three photos of 6D5in a .heelchair& taken in "#7"
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FD!s First *naugural "ddress
• Attempted to restoreconfidence in theAmerican people
• “,he only thin .e haveto fear is fear itself
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The +New Deal,
• -amed after a phrase in6D5:s "#*$ nomination
speech
• +ecame the nickname for
6D5:s economic proram
• 1onsisted of three
separate aspects!
• 5elief • 5ecovery
• 5eform6D5 campainin in "#*$
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The +Brain Trust,
• Group of advisers .hoassisted 6D5 in makin
early economic policy
• Members included 3rofs<
Moley& ,u.ell& and +erle
• Members had varyin
opinions about
Bumpstartin the economy• 0ventually disbanded to
make .ay for other experts
Adolph +erle 5exford ,u.ell
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The First Hundred Days
• ,hreeCmonth period afterinauuration
• 6lurry of leislative activity
• “4oneymoon” period bet.een6D5 and 1onress
• (a. most of -e. Deal:s relief
proram established& includin!
• Aricultural AdBustment Act
• ,ennessee 9alley Authority
• GlassC(teaall +ankin Act
6D5 sinin the ,9A into la.
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Solving the Banking Crisis
• "#*%"#**! -early "%&%%% banks closed
• Michian overnor
ordered bankin
“moratorium” in state
• 6D5 chaned .ordin to
bank “holiday”
• +anks closed for four daysfor inspection
• GlassC(teaall Act created
6DI1
A policeman stands uard outside a
closed -e. /ork bank
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Fireside Chats
• 5adio “talks”• 6D5 spoke plainly
.ith audience
about issues and
concerns
• ;sually conducted
in an informal
manner • 6D5 ave *% chats
.hile in office6D5 addresses the nation durin a "#*8 fireside chat
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+-ump -riming, and the Dole
• 6ederal 0merency 5elief Act passed in "#**
• 605A pumped money into the
economy for Bob prorams• Also provided relief for the
unemployed
• (pent billions on public .orks
throuh 1ivil 2orksAdministration and
0merency 2ork 5elief
prorams4arry 4opkins
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Dis#ussion $uestions
"< 2hy do you think 4oover had such a difficult time
.innin the reelection in "#*$=
$< Do you think that federal spendin specifically to
create Bobs for Depression victims .as a ood idea&or .ould it have been better to ask the states and
private charities to take a larer role in the relief
efforts= 2hy=
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• Aricultural AdBustmentAct of "#** souht to
reduce farm surpluses
• 5esettlement
Administration
• 6arm (ecurity
Administration
• 5ural 0lectrificationAdministration
• Aricultural AdBustment
Act of "#*'
FD!s Farm -rogram
A poster advertises help to farmers available
throuh the 5esettlement Administration
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The Dust Bowl. Causes
• Overcultivationof land in the
Great 3lains
• (ustained
drouht
throuhout
reion
• 4ih .inds ble.a.ay loose
topsoilA dust cloud approaches the to.n of (tratford& ,exas& in "#*8
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The Dust Bowl. *mpa#t
• More than 8%%&%%% left
homeless
• (torms ble. lare
amounts of dust from the3lains into cities such as
1hicao and +uffalo
• “5ed sno.” fell on
to.ns in -e. 0nland
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The -light of the +/kies,
• 6armers from Oklahomafled the Dust +o.l
• 2ent to 1alifornia for
farm Bobs• 3ossibly "8 percent of
Oklahoma:s population
became mirants
A .oman and her child rest beside their
car durin their trip .est
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Hardships
• “1amps”
unsanitary
• 2aes decreased
for lare numbers• 1alifornia passed
an “antiCOkie”
la.
A mirant camp in 1alifornia
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The +0igrant 0other,
• One of the most famous -e. Dealera photos
• (hot for the 5esettlement
Administration byDorothea ?ane
• ,aken in 1alifornia in
6ebruary or March "#*'
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Dis#ussion $uestions
"< 2hy do you think Great 3lains farmers durin theDepression used unsound cultivatin practices that
led to the Dust +o.l=
$< Do you think -e. Deal farm prorams .eredesined to reform the practices that led to the price
collapse= 2hy=
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1ork2Based !elief -rograms
• 6D5 consideredunemployment a maBor&
immediate problem
• 2orkCbased prorams seen
as a desirable alternative tothe dole
• (everal prorams .ere
created to provide .ork invarious occupations
• (ome sa. the “make .ork”
prorams as boondolesA -e. Deal .orkCbased relief
proram at a 6lorida rock quarry
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Civilian Conservation Corps
• 3rovided Bobs for youn menaed ">$8
• Eobs included .ork on
environmental proBects
• One of the most popular -e.
Deal prorams
• “0nlistees” .ere paid
)*% per month& .ith )$8of that sent home to
their families
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,his Illinois 111
recruitment posterhihlihts “A /oun
Man:s Opportunity for
2ork& 3lay& (tudy& and
4ealth
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National 3outh "dministration
• 3rovided partCtime Bobs forurban youths .ho .anted
to remain in school
• 3articipants paid )')7%
per month for “.ork study”
Bobs
• 0mployed both male and
female students
,.o youn men of the -/A
.ork on an airplane enine
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-ubli# 1orks "dministration
• Money iven tocontractors for
public .orks
• Administered by
(ecretary Ickes
• +uilt brides&
schools& airports&
roads& -avy ships• (pent more than
)' billion
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Civil 1orks "dministration
• Mainlyconstructed
brides and
buildins
• (pent over )"
billion in less
than a year
• Many consideredit a boondole
• Abandoned in
"#*712ACbuilt public .orks proBects included thisMinnesota hih.ay
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1orks -rogress "dministration
• 1reated in "#*8• 4eaded by 4arry 4opkins
• 6ocused on public .orks
such as brides& roads&run.ays
• Also included arts proBects
• (ome proBects famous
F1amp David& Dealey3la@a (ins similar to this one alerted the
public that a site .as a 23A .orks
proBect
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In addition to public
.orks proBects& the
23A also providedadults .ith Bob trainin
as .ell as enrichment
opportunities
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1-". Supporting the "rts
• 23A also provided fundin for
various arts prorams
• 2ritin& theater& photoraphy&
and paintin prorams
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Federal Theater -ro4e#t
• 3art of the “6ederal One” proBect
• 4eaded by 4allie 6lanaan
• “?ivin -e.spapers”
• Included Orson 2elles& Eohn
4ouseman& and Arthur Miller
• 5an into several controversies
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Federal "rt -ro4e#t
• (peciali@ed in visual arts
• 1reated more than
$%%&%%% .orks
• Included art production&art instruction& and art
research
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Federal 1riters -ro4e#t
• Allo.ed .riters to.ork directly for
the overnment
• 2riters paid a
“subsistence”
.ae
• (everal famous
.riters participated
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Dis#ussion $uestions
"< 2hy did many see the .orkCbased relief prorams of the -e. Deal as a desirable alternative to the dole=
$< In your vie.& .hich of the -e. Deal relief prorams .as the
most effective= 0xplain<
*< Do you think the focus on .orkCbased relief prorams for theyoun F111 and -/A .as .orth.hile= 2hy=
7< If you had been president in the midC"#*%s& .ould you have
felt promotin the arts .as a valid use of federal funds to
fiht the Depression= 2hy or .hy not=8< (hould the federal overnment have taken on so much debt in
order to provide .ork proBects for unemployed= 0xplain<
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National *ndustrial !e#overy "#t
• 1enterpiece of -e.Deal recovery proram
• (ouht to promote fair
competition& raise
.aes and prices& and
institute collective
barainin
• 1reated “codes of faircompetition”
• 0nforced by the -5A
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The N!"s Blue %agle
Merchants proudly
supported the -5A
by prominently postin +lue 0ale
posters at their
places of business
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The +Si#k Chi#ken, Case
• A.L.A. Schechter Poultry Co. v<U.S. F"#*8
• (upreme 1ourt unanimously
struck do.n the -I5A• Decided that 1onress hadiven the president too muchla.makin po.er
• Also ruled that -I5A violatedthe 1onstitution:s commerceclause (upreme 1ourt 1hief Eustice
1harles 0vans 4uhes
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The +Nine /ld 0en,
• (upreme 1ourtdominated by
conservatives
• 6D5 unable to make
appointments to 1ourt• 1ourt declared several
-e. Deal prorams
unconstitutional• 6D5 believed that the
1ourt .as hamperin
needed relief and reform
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FD!s +Court2-a#king, -lan
• 6D5 determined to preserve -e. Deal reforms• Introduced leislation for revampin the Budiciary
• ?a. .ould allo. him to appoint one ne. Bude
for every (upreme 1ourt member over ae H%• 2ould increase (upreme 1ourt to a maximum of
"8 members
• 3lan soundly defeatedJ 6D5 lost political support
• 1ourtCpackin battle ended as a dra.
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New Deal +"gitators,
• Opposed -e. Deal before a national
audience
• All felt 6D5 had one
too far& or not far
enouh
• -one had much
influence on the "#*'election or on the
-e. Deal in eneral
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The "meri#an 5iberty 5eague
• (a. 6D5 as a “traitor tohis class”
• +elieved the -e. Deal
.as leadin the country
to.ard socialism
• (everal famous members
• 1hallened the leality
of the 2aner Act• Disappeared by "#7%
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Father Charles Coughlin
• 1atholic priest .ho usedradio to reach mass
audience
• 6irst a -e. Deal
supporterJ later a critic
• (ympathetic to antiC
(emitic policies of 4itler
and Mussolini• 6ederal broadcast rules
eventually forced
1ouhlin off the air
6ather 1harles 1ouhlin speaks at a stadium
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Huey 5ong. +The 6ingfish,
• ?ouisiana overnor and senator• +elieved -e. Deal hadn:t done
enouh
• 3roposed “(hare the 2ealth”
proram
• Assassinated in "#*8
• 5evenue Act of "#*8 incorporated
some of ?on:s ideas
(enator 4uey 3< ?on
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The Townsend -lan
• 3roposed a monthly pension of)$%% for all citi@ens over '%
• ,o be paid for by a national
sales tax
• 5ecipients required to spend
entire payment each month
• ,o.nsend 3lan roups spread
across nation• (ocial (ecurity Act
Dr< 6rancis ,o.nsend
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The %le#tion of &'(7
• 6D5 decided to seek asecond term
• 5epublicans nominated
Kansas Governor Alf
?andon
• 6D5 .on in a landslide
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Election of 1936: Results
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+New Deal Coalition,
• Diverse coalition of various roups .ho supported6D5 in "#*'!
• ?abor unions
• ;rban political machines• 5acial and reliious minorities
• (outhern .hites
• Groups areed on little besides the -e. Deal
• +ased on this frame.ork& Democrats dominated the
federal leislature from "#*$"#>%
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FD!s Se#ond *naugural "ddress
“I see millions of families tryin to liveon incomes so meaer that the pall of
family disaster hans over them day by
day<
I see millions .hose daily lives in city
and on farm continue under conditions
labeled indecent by a soCcalled politesociety half a century ao<
I see millions denied education&
recreation& and the opportunity to
better their lot and the lot of their
children<I see oneCthird of a nation& illCclad& illC
housed& illCnourishedL”
6ranklin D< 5oosevelt
Eanuary $%& "#*H,he cover of the proram for 6D5 and
9ice 3resident Garner:s inauuration
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Dis#ussion $uestions
"< 4o. effective do you think the -I5A .as at solvin the problemof industrial recovery= 0xplain<
$< Do you feel that the (upreme 1ourt overstepped its checksCandC balances function in strikin do.n -e. Deal leislation= (houldthe rules have been “bent” for -e. Deal prorams= 2hy or .hy
not=*< (ome believed that .ith his courtCpackin plan& 6D5 .as
seekin dictatorial po.ers< Do you believe this criticism .as Bustified= 2hy or .hy not=
7< Do you feel that 5oosevelt:s reelection in "#*' .as due more to public approval of the -e. Deal or to his personal popularity=2hy=
8< 2hich of the -e. Deal “aitators” do you think .ere most Bustified in their criticism of 6D5 and the -e. Deal= 2hy=
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New Deal !eform 0easures
• (ouht to ensure that conditionsleadin to Depression did not
reoccur
• Many reforms radically chaned
American society
• (everal -e. Deal prorams
and reforms still in effect today
• (ocial (ecurity• 3ure food and dru la.s
• ,ennessee 9alley Authority
• 6DI1
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So#ial Se#urity "#t of &'(8
• 6irst suested by6rances 3erkins
• 3rovided for
• OldCae pensions
• ;nemployment
insurance
• Aid to
dependents• 6unded by a payroll
tax
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National 5abor !elations "#t
• Also kno.n as the“2aner Act”
• Allo.ed for collective
barainin
• 3rotected rihts oflaborers to form unions
• Also created the -?5+
6D5 sins the 2aner Act as ?abor
(ecretary 3erkins looks on
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Fair 5abor Standards "#t
• Guaranteed a federalminimum .ae
• (et at $8 cents per hour
in "#*>
• Guaranteed overtime
pay at “time and a half”
• 3rohibited “oppressive
child labor”
,he 6?(A prohibited children Fsuch
as the one sho.n in this photo from
.orkin in ha@ardous Bobs
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Tennessee 9alley "uthority• 1reated to assist ,ennessee 9alley area
• 4eaded by David ?ilienthal
• 3rovided flood control and cheap hydroelectric po.er
• Also protected the social and economic .elfare of
people in the area
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Help for Homeowners
• 4ome O.ners ?oan1orporation! lo.C
interest loans for
current homeo.ners
• 6ederal 4ousinAuthority! loans for
home repair and ne.
buildin proBects
• ;nited (tates 4ousin
Authority! lo.Ccost
public housin
6ederal 4ousin Authority loo
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Food: Drug: and Cosmeti# "#t
• (ined into la. in "#*>Jstrenthened 6DA
• (et standards for and
reulated quality of food
• 0valuated safety and
leitimacy of drus
• 1ontrolled product
advertisin
?ashC?ure& a cosmetic eyeliner .hich
blinded at least one user& .as one
product banned by the 6DA
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Se#urities and %;#hange Commission
• 1reated throuh (ecurities
Act of "#** and (ecurities
0xchane Act of "#*7
• ?a.s required truth in sales of
securities and fair treatment of
investors
• (01:s purpose to providemarket stability and protect
investorsEoseph 3< Kennedy&
the first head of the (01
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Creation of the +1elfare State,
• -e. Deal sinaled the beinnin of the “.elfare state”
• Government became the
overseer of citi@ens: .elfare
from “cradle to rave”• Many -e. Deal reform
prorams still reatly affect
American life
• (ome see the costs and level of
overnment involvement as
dra.backs
6D5 sinin the (ocial (ecurity
Act into la.
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1omen of the New Deal %ra
0leanor 5oosevelt
Mary Mc?eod +ethune 6rances 3erkins
Marian Anderson
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FD! and Civil !ights
• (inificant debate reardin 6D5:scivil rihts record
• 5efused to support antiClynchin la.
• Did not .ork to interate armed
forces
• 6031 ensured equal opportunity for
African Americans in overnment and
defenseCindustry Bobs• Appointed African Americans to
overnment positions 5alph +unche
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Dis#ussion $uestions
"< Do you feel that -e. Deal .elfare proramsexceeded the federal overnment:s authority=
0xplain your ans.er<
$< 2hat functions does the (ocial (ecurity
Administration serve= In your vie.& .hich of these
is the most important= 2hy=
*< On a scale from A to 6& ho. .ould you rade 6D5:s
civil rihts record= 2hy=
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Dis#ussion $uestions
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-opular Culture in
the New Deal %ra• Music of 2oody Guthrie
• -ovels of Eohn (teinbeck
(The Grapes of Wrath)
• "#*%s movies
• 4umorist 2ill 5oers
• 5adio:s impact on
American life (The Warof the Worlds
A "#*%sCera movie theater
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1oody Guthrie
• 6olk siner • 2rote “,his ?and Is /our
?and” and other sons
about DepressionCera life
• Inspired several "#'%s folk
siners
• Died in "#'H
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>ohn Steinbe#k
• Kno.n for his novelsabout 1alifornia
• The Grapes of Wrath
describes the Eoad family:s
travels from Oklahoma to1alifornia
• 3raised and critici@ed by
many• -ovel .on 3ulit@er 3ri@eJ
soon made into a film
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1ill !ogers
• American humorist• 5adio and movie star and
ne.spaper columnist
• (atiri@ed politics and
current events
• Killed in "#*8 plane crash
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The War of the Worlds
• 3roduced by Orson 2elles• 0pisode on “Mercury
,heater on the Air”
• -early caused mass panic
• Anxiety over events in
0urope heihtened fear
Orson 2elles
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The %le#tion of &'@?
• 2endell 2illkie& the “darkhorse” GO3 candidate
• 6D5 allo.s himself to be
drafted for third term
• 6D5 .ins& but .ith a
smaller marin of victory
than in "#*$ and "#*'
2endell 2illkie
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The 5ega#y of the New Deal
• 0nlarement ofovernment
• Deficit spendin
• 2elfare state
• Inspiration for
future .elfare
prorams& such as
?+E:s “Great(ociety”
6D5 shakes hands .ith ,exas -/A directorand
future president?yndon Eohnson
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Dis#ussion $uestions
"< Do you think that Guthrie and (teinbeck accurately depictedlife durin the Depression= 2hy or .hy not=
$< 2hat impact did the films of the "#*%s have on life in theDepression era< 2hy=
*< Do you believe that mass hysteria such as that .hichoccurred .ith The War of the Worlds could happen today=2hy or .hy not=
7< Do you think American forein policy .ould have beendifferent had 2endell 2illkie .on the "#7% presidential
election= 2hy=8< Do you think that the -e. Deal effectively solved the
problems of the Depression= 2hy or .hy not=