GREAT DEPRESSION AND THE NEW DEAL 1929 - 1942 LIFE IN THE 1930’S.
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Transcript of GREAT DEPRESSION AND THE NEW DEAL 1929 - 1942 LIFE IN THE 1930’S.
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GREAT DEPRESSION GREAT DEPRESSION AND THE NEW DEALAND THE NEW DEAL
1929 - 19421929 - 1942LIFE IN THE 1930’SLIFE IN THE 1930’S
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What was the Great What was the Great Depression?Depression? The worst economic crisis of the centuryThe worst economic crisis of the century Over 13 million people unemployed Over 13 million people unemployed That’s 35 % unemployed/50% for African-That’s 35 % unemployed/50% for African-
Americans/ Latinos Americans/ Latinos A crisis in the banking industryA crisis in the banking industry ““Dust bowl”Dust bowl” as a result of drought and poor as a result of drought and poor
farming practicesfarming practices Farmers lost cropsFarmers lost crops Many people lost their homesMany people lost their homes A social and psychological crisisA social and psychological crisis
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Three areas of problemsThree areas of problems
Consumer spending:Credit Banking industry:
Reckless practices
Farming Sector: Dust Bowl
overproduction
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Business cycle Business cycle
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Great Depression Great Depression Business cycleBusiness cycle
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Business cycle since the Business cycle since the Great Depression: healthierGreat Depression: healthier
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Why is the Great Depression Why is the Great Depression important today? important today?
1)1) Changed the Changed the relationship of relationship of Americans to their Americans to their government government permanently permanently
We now look to We now look to government to government to solve economic solve economic problemsproblems
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Why is the Great Depression Why is the Great Depression important today? important today?
2)2) Permanently Permanently enlarged the enlarged the federal federal governmentgovernment
• Liberals loved thisLiberals loved this• Conservatives Conservatives
hated ithated it
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What caused the Great What caused the Great Depression?Depression?
Unequal distribution of wealthUnequal distribution of wealth Stock market crash of 1929Stock market crash of 1929 Industrial Industrial overproductionoverproduction – farmers and – farmers and
businesses were producing more goods than businesses were producing more goods than could be bought and used. could be bought and used.
Easy creditEasy credit Banks had made unwise loansBanks had made unwise loans Banks lent too much moneyBanks lent too much money People could not pay back their loansPeople could not pay back their loans
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Unequal Distribution of Unequal Distribution of WealthWealth
No middle classNo middle classHowever, because of the However, because of the
availability of credit, people availability of credit, people are “buying” goodsare “buying” goods
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Buying Buying on crediton credit creates creates a a false demandfalse demand for for productsproductsBuying on credit Buying on credit
created created false false demanddemand
What happens to demand when people have reached their credit limit?
Remember that banks have made some unwise loans as well.
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Industrial OverproductionIndustrial Overproduction = = too many too many products and not enough buyersproducts and not enough buyers
WAGES NOT KEEPING UP WITH WAGES NOT KEEPING UP WITH INFLATION INFLATION
SUPPLYSUPPLY GREATER THAN GREATER THAN DEMANDDEMAND
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Chain reactionChain reaction
Fewer goods are sold.
Demanddrops.
In order to stay in businesscompanies cut
wages
People lose theirconfidence &
start saving their money
Demanddrops even
further.
Companies are forced to cut costs
by laying people off
Even more peopleLose their confidenceAnd spend less money
People lose their jobs.
The Spiral Of
Depression
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Stock Market CrashStock Market Crash
Many stocks purchased in huge numbers Many stocks purchased in huge numbers Drove up the value of company stocks Drove up the value of company stocks
artificiallyartificially Stock prices fellStock prices fell Huge sums of money lostHuge sums of money lost
Thursday, October 24, 1929
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BlackBlack TuesdayTuesday
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Complete Analyzing Political Cartoons:
The Americans PAGE 487
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““Migrant Mother”: The Face Migrant Mother”: The Face of the Great Depression of the Great Depression
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The ResultsThe Results
Bank FailuresBank Failures
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The Results:The Results:UnemploymentUnemployment
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UnemploymentUnemployment
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DustbowlDustbowl
A traveler noticed a nice new hat by the side of the road, and he stopped to pick it up. Under the hat was a man, buried up to his neck in the dust! As he dug the poor fellow out, the traveler asked if he wanted a ride into town. "No, I'll get there myself," the man replied, "I'm on a horse." (Excerpt from THE DUST BOWL by Tricia Andryszewski, p. 33.)
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Poor farming practices + Poor farming practices + drought = drought = DustbowlDustbowl
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Dust clouds + high winds Dust clouds + high winds = terrifying experience= terrifying experience
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What areas were affected What areas were affected by the Dust Bowl? by the Dust Bowl?
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OKIESOKIES: Refugees from the : Refugees from the Dust Bowl. They usually Dust Bowl. They usually
went to Californiawent to California
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The Results: HARD TIMESThe Results: HARD TIMES
Loss of homesLoss of homes ““HoovervillesHoovervilles””
Here were all these people living in old rusted-out car bodies. ... One family ... [was] living in a piano box. This wasn't just a little section, this was maybe 10 feet wide and 10 feet long. People living in whatever theycould junk together. ..."
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The Results: Soup kitchensThe Results: Soup kitchens
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The results: The results: People on “ relief ” People on “ relief ”
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The results: The results: Social UnrestSocial Unrest: Fear : Fear of a Socialist Revolutionof a Socialist Revolution
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The ResultsThe Results: Social : Social unrest and labor activityunrest and labor activity
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DepressionDepression
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DepressionDepression
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DepressionDepression
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Did everyone suffer Did everyone suffer during the Great during the Great Depression?Depression?
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Two Presidents respond to the Depression:Two Presidents respond to the Depression: One fails and the other One fails and the other changes the role of changes the role of government forever!government forever!
President Hoover 1928-1932President Franklin Roosevelt
1932 - 1945
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Hoover fails to respond Hoover fails to respond effectively to the effectively to the DepressionDepression ““rugged rugged
individualism”individualism” Thought government Thought government
relief would be bad for relief would be bad for people’s characterpeople’s character
VoluntaryVoluntary associations associations CharityCharity Failed to recognize how Failed to recognize how
big the economic crisis big the economic crisis waswas
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FDR FDR and the and the New DealNew Deal increase the size increase the size of the federal government and bring it of the federal government and bring it
into our lives into our lives
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Worldwide Worldwide Depression leads Depression leads to social and political unrestto social and political unrest
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And the rise of dictators And the rise of dictators in Europe and Japanin Europe and Japan
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But many in the US are But many in the US are burying their heads in the burying their heads in the sand….. AMERICA FIRST!sand….. AMERICA FIRST!
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America FirstAmerica First movement.. movement..
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1933 – 1933 – FDRFDR TAKES OVER – TAKES OVER –AND JUST IN TIMEAND JUST IN TIME
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The New Yorker Magazine’s The New Yorker Magazine’s view of the inauguration!view of the inauguration!
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Election of 1932Election of 1932
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FDRFDR: The nation’s only : The nation’s only 4 term4 term President. Served through the President. Served through the Great Depression and WW IIGreat Depression and WW II
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Families on ReliefFamilies on Relief
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““The only thing we have The only thing we have to fear …..to fear ….. is fear itself”is fear itself”
“Our greatest primary task is to put people to work”
Franklin Delano Roosevelt
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FDR: “This generation of FDR: “This generation of Americans has a rendezvous Americans has a rendezvous with destiny”with destiny”
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FDR inspires FDR inspires confidence confidence
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A New President A New President and a New Dealand a New Deal
I NEVER FORGET I NEVER FORGET THAT I LIVE IN A THAT I LIVE IN A HOUSE OWNED BY HOUSE OWNED BY ALL THE ALL THE AMERICAN PEOPLE AMERICAN PEOPLE AND I HAVE BEEN AND I HAVE BEEN GIVEN THEIR GIVEN THEIR TRUST.” TRUST.”
FDRFDR
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Reversing the Spiral of Reversing the Spiral of DepressionDepression
Government Spending $
Alphabet Agencies
More Jobs
More Spending
Demand for goods increases
More goods have to be produced
More people withJobs = more pay $
More Spending
Demand for goods increases
More goods have to be produced
More Jobs
More Pay = More Taxes
Cycle of
Prosperity!
Democrats called this Process
‘Pump Priming’
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FDR’s FDR’s New DealNew Deal: : Relief, recovery, reformRelief, recovery, reform
Relief for the needyRelief for the needy Jobs providedJobs provided Banking, Business and government reformedBanking, Business and government reformed
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FDR gets to workFDR gets to work: : The First 100 daysThe First 100 days
Emergency BankingEmergency Banking ActAct
Bank “holidays”: Bank “holidays”: banks are ordered banks are ordered closed on certain closed on certain daysdays
Glass – Steagall ActGlass – Steagall Act creates creates FDICFDIC: : Federal Deposit Federal Deposit InsuranceInsurance
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The Alphabet AgenciesThe Alphabet Agencies
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FDR’s New DealFDR’s New Deal: Government : Government grows and takes over parts of the grows and takes over parts of the economyeconomy
AAA – Agricultural Adjustment ActAAA – Agricultural Adjustment Act CCC – Civilian Conservation CorpsCCC – Civilian Conservation Corps NRA – National Recovery ActNRA – National Recovery Act WPA – Works Project AdministrationWPA – Works Project Administration PWA – Public Works AdministrationPWA – Public Works Administration SSA – Social Security AdministrationSSA – Social Security Administration REA – Rural Electrification AdministrationREA – Rural Electrification Administration TVA – Tennessee Valley Authority TVA – Tennessee Valley Authority
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Fireside ChatFireside Chat: May 7, : May 7, 19331933
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AAAAAA: paid farmers not to : paid farmers not to farm, production, $$farm, production, $$$$
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CCCCCC: employed young men : employed young men to work in national parks, to work in national parks, build roads, hiking trails, build roads, hiking trails,
etcetc
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WPA – Works Project WPA – Works Project AdministrationAdministration
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The WPA put artists to The WPA put artists to workwork
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WPA: created millions of WPA: created millions of jobs for unskilled and jobs for unskilled and
skilled workersskilled workers
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Dorothea Lange documents Dorothea Lange documents the Depression for the the Depression for the FSAFSA
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Her most famous photo: Her most famous photo: Migrant MotherMigrant Mother
(and how a photo –and a photographer- (and how a photo –and a photographer-
can lie)can lie)
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Dorothea Lange documents Dorothea Lange documents Japanese internmentJapanese internment 1942 1942
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HomeworkHomework: A New Deal : A New Deal for the Artsfor the Arts
http://www.archives.gov/exhibit_hall/new_dehttp://www.archives.gov/exhibit_hall/new_deal_for_the_arts/index.htmlal_for_the_arts/index.html
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Problems and Criticisms Problems and Criticisms of the New Dealof the New Deal
Some programs were Some programs were wastefulwasteful Charges of Charges of socialismsocialism At first, the U.S. Supreme Court struck At first, the U.S. Supreme Court struck
down some of FDR’s New Deal programsdown some of FDR’s New Deal programs FDR responds to this threat to his New FDR responds to this threat to his New
Deal with the Deal with the court- packing schemecourt- packing scheme
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Court – packing scheme: FDR Court – packing scheme: FDR
declares war on the Supreme Courtdeclares war on the Supreme Court