Mr. Hill's Great Depression and New Deal PP
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Transcript of Mr. Hill's Great Depression and New Deal PP
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Great DepressionCauses and Consequences
1929-1939
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Black Tuesday
• October 29, 1929: • Stock Market Crash
marked beginning of Great Depression
• Over inflated stock values driven by Buying on Margin
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• Causes of Great Depression • tariffs and war debt policies cut worldwide
consumption of USA goods (Hawley-Smoot Tariff)• USA Farming industry having economic problems• Availability of easy credit / • BUYING Stocks ON MARGIN• Unequal distribution of income – more money
reached the rich and less to the poor
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Consequences of Great Depression
• Banks and Businesses Collapse
• 11,000 of the USA’s 25,000 banks closed
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Stock ticker
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Consequences of Great Depression
• Unemployment skyrockets during the G.D.
• Unemployment reached 30%
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The Great Depression (1929-1941)
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Bread Lines and Soup Kitchens feed millions of jobless hungry
Americans
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Question
• What were the four worst years of unemployment during the Great Depression
• See next slide for the answer
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Hoovervilles
• Evicted from their homes, many Americans lived in shabbily built houses made of discarded wood and trash.
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Herbert Hoover
Seemed to be
UNCARING
Great Depression
Starts in 1929
Attacked the BONUS ARMY
Veterans
RESULT: HOOVER Loses the election of 1932
to FDR
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Farm Families hit especially hard during the Depression
• What was the DUST BOWL ?
• Area of the American midwest whose topsoil eroded and caused huge clouds of dust to form
• Farmers from this area often left for California
• “OKIES”
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DUST BOWL• WHAT STATES were
a part of the DUST BOWL?
• See page: 680• New Mexico, Texas,
Oklahoma, Kansas, Colorado
• How many states suffered damage?
• 12-13
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Dust Bowl (page 680)• How far away was
dust of the Dust Bowl reported to have been carried?
• 500 miles off the East Coast
• How many states were covered by Dust in 1934’s dust storm?
• 19-20
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No Food Stamps
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There was no WIC program
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No Social Security
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No Section 8 Housing Projects
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No Governmental Assistance
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"Brother, Can You Spare a Dime," lyrics by Yip Harburg, music by Jay Gorney (1931) They used to tell me I was building a dream, and so I followed the mob, When there was earth to plow, or guns to bear, I was always there right on the job. They used to tell me I was building a dream, with peace and glory ahead, Why should I be standing in line, just waiting for bread? Once I built a railroad, I made it run, made it race against time. Once I built a railroad; now it's done. Brother, can you spare a dime? Once I built a tower, up to the sun, brick, and rivet, and lime; Once I built a tower, now it's done. Brother, can you spare a dime?
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Once in khaki suits, gee we looked swell, Full of that Yankee Doodly Dum, Half a million boots went slogging through Hell, And I was the kid with the drum!
Say, don't you remember, they called me Al; it was Al all the time. Why don't you remember, I'm your pal? Buddy, can you spare a dime?
Once in khaki suits, gee we looked swell, Full of that Yankee Doodly Dum, Half a million boots went slogging through Hell, And I was the kid with the drum!
Say, don't you remember, they called me Al; it was Al all the time. Say, don't you remember, I'm your pal? Buddy, can you spare a dime?
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President Hoover
--Hoover was president at the start of the Great
Depression--Hoover caught most of
the blame
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Hoover / F.D. Roosevelt
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President Hoover blamed• HOOVER’s Reaction to Great
Depression• no direct relief = no cash
payments or food directly to the needy / Hoover favored “rugged individualism” and no Federal welfare program
• indirect relief = urge cooperation among business leaders / help to charities but not directly to the poor
• GOVT Sponsored GOVT Projects: eg., HOOVER DAM
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• Steps taken by Hoover to end the Depression
• Federal Home Loan Bank Act
• Reconstruction Finance Committee
• ---both too little too late
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• HOOVER UNPOPULAR WITH USA PUBLIC – LOSES 1932 election to FDR -
• Not visibly active enough to stop the Depression
• uses ARMY to break up BONUS ARMY
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BONUS ARMY • Hoover’s did not
respond to outcry for DIRECT RELIEF from the government
• Bonus Army dispersed at tip of a bayonet seemed to show is dislike for common people.
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Hoover takes cautious action
• Calls a meeting of business leaders to voluntarily avoid worker layoffs and to not lower wages.
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Hoover’s Actions: too little too late
• Hoover Dam construction• Federal Home Loan Act: lower mortgages
and stop foreclosures on farms and homes• Reconstruction Finance Corp: emergency
$$ for businesses, banks, other employers..
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FDR wins election of 1932
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Franklin Delano Roosevelt’s New Deal
•3 r’s • Relief• Recovery• Reform
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New Deal = FDRs Plan • Govt Programs to end Great Depression
• ALPHABET Soup of Programs
– AAA– CCC– FDIC – NRA– SEC– TVA
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The first 100 days FDR moved to provide. . .
• Relief: Provide immediate help to poor and unemployed
• Recovery: bring business back from bankruptcy
• Reform: install economic changes that would prevent future economic depressions
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FDR’s Fireside Chats
• FDR would explain New Deal efforts to the public
• built confidence in the New Deal
• FDR was 1st president to use the radio
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FDR’s plan for the Great Depression
• Glass Steagall Banking Act: established the (FDIC) – Federal Deposit Insurance Corporation/ Insured deposits up to $ 2500.00
• (SEC) Security and Exchange Commission: to police the stock market
• (FTC) Federal Trade Commission: police up corporations.
• Banking Act: federal control of Banks
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Banks regulated by FDR
• Bank Holiday All banks close for four days while Federal Inspectors evaluated the banks as strong, wavering, or hopeless.
• Emergency Banking Act gave US govt. power to regulate banks
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Alphabet Soup of recovery agencies
• CWA – Civil Works Administration federal effort provided work for over 4 million people: building or cleaning roads, dams, parks, schools, etc..
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FDR’s New Deal
• (CCC) Civilian Conservation Corps: employment for 500,000 men in making parks, road construction, etc..
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TVA
• (TVA) Tennessee Valley Authority: federal effort to build dams and electrify impoverished South
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Alphabet Soup of Reforms
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FDR’s NEW DEAL
• Unlike Hoover, FDR called for direct relief of Americans.
• MASSIVE government intervention in business, banking, and individuals’ economic situations.
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NRA: National Recovery Administration
• Regulated industry• Set working
conditions and ended child labor
• Allowed Unions
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Social Security Act
• Social Security Act: provided old age benefits, disability, unemployment
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WPA
• WPA – Works Progress Administration: work relief projects such as highway construction, flood control, flood control, education, health, etc..
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New Deal Critics
• Critics of FDR fell into two categories
• 1. those who thought he did not do enough
• 2. those who thought he did too much
• HUEY LONG• Share-Our-Wealth
Plan
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New Deal Critic: Father Coughlin and Dr. Townsend
• Radio priest wanted to nationalize banks
• Townsend wanted to give ALL unemployed persons over 60 $200 per month pension
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American Liberty League
• Critics of FDR who thought he was interfering with the free market place too much
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What was the Court Packing Scheme?
• Supreme Court had struck down some of FDR’s NEW DEAL programs
• FDR tried to “reform” the court.
• Add justices • Create an age
requirement
• Show: http://www.learn360.com/ShowVideo.aspx?ID=479647
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FDR ‘s Court Packing Scheme
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"Brother, Can You Spare a Dime," lyrics by Yip Harburg, music by Jay Gorney (1931)
They used to tell me I was building a dream, and so I followed the mob, When there was earth to plow, or guns to bear, I was always there right on the job. They used to tell me I was building a dream, with peace and glory ahead, Why should I be standing in line, just waiting for bread? Once I built a railroad, I made it run, made it race against time. Once I built a railroad; now it's done. Brother, can you spare a dime? Once I built a tower, up to the sun, brick, and rivet, and lime; Once I built a tower, now it's done. Brother, can you spare a dime?
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Once in khaki suits, gee we looked swell, Full of that Yankee Doodly Dum, Half a million boots went slogging through Hell, And I was the kid with the drum!
Say, don't you remember, they called me Al; it was Al all the time. Why don't you remember, I'm your pal? Buddy, can you spare a dime?
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Once in khaki suits, gee we looked swell, Full of that Yankee Doodly Dum, Half a million boots went slogging through Hell, And I was the kid with the drum!
Say, don't you remember, they called me Al; it was Al all the time. Say, don't you remember, I'm your pal? Buddy, can you spare a dime?