part 1: the great depression part 2: fdr and the new deal dr. kevin b. witherspoon lander university
TRANSCRIPT
Part 1: The Great DepressionPart 2: FDR and the New Deal
Dr. Kevin B. Witherspoon
Lander University
The Stock Market Crash
1920s background: Production Tariffs Credit Farmers
The Stock Market Crash
ProsperityThe inflated market
Buying on margin Speculation Holding companies Overvalued companies
Utilities, railroads, radioRCA: $11 1911, $450
1928
The Stock Market Crash
The bubble bursts Oct. 24, 1929 -
“Black Thursday” Oct. 29 - “Black
Tuesday”
Causes of the Crash
Speeding the sell-off: Margin buying Investigations Poor banking
structure Panic
1932, The Worst Year
Farmer’s Holiday Association Milo Reno*
1932, The Worst YearThe Bonus Army*, 1932
Bonuses for WWI veterans - 1924 Adj. Compensation Act Anacostia Flats Douglas Macarthur
1932, The Worst Year
1932, the worst year GNP = 1/2 Businesses went under Banks closed down 1/3 population unemployed Homelessness NYC - 95 starvations 1931
Living in the Depression
Effects of the Depression Unemployment Partial employment Gradual effects Hoboeism Health issues
Living in the Depression
Society during the Depression The farm belt
Dust Bowl
Psychological impact Coping with the
Depression “We lived lean.” Maintain normality Neighborhood associations
Living in the Depression
Society during the Depression Families Everyone worked Divorces Birth rate declines
Living in the Depression
Aid Federal? Employers Banks Churches Bread lines
Hoover and the Depression
Herbert Hoover* Background Voluntarism “trickle-down” 1932, Reconstruction
Finance Corporation Public Works Bill Tariffs Tax increase
FDR elected
Roosevelt*, the ManCrippledElected 4 timesEleanor*, the First Lady
Roosevelt Biography
Born 1882 Hyde ParkFather & motherEarly political career:
1910 NY State Senate 1913 Asst. Secty. Of Navy 1921-24 Polio 1928 Gov. of NY
Practice for New Deal
The First New Deal
Relief and Recovery (1933-34)The 100 Days
Emergency Banking Relief Act Glass-Steagall Banking Act Securities Act
The First New Deal
Civilian Conservation Corps* (CCC)
Young men on federal work projects
$30/month500,000 jobs
The First New DealFederal Emergency Relief Act (FERA)
Emergency Relief Administration, Harry Hopkins
Agricultural Adjustment Act (AAA)“Parity”Subsidies, crop reduction1935 unconstitutional
U.S. v. Butler
The First New Deal
Tennessee Valley Authority (TVA)
The First New Deal
National Industrial Recovery Act (NIRA)
National Recovery Administration (NRA)
Business/government cooperationLabor, form unionsHugh Johnson1935 “Sick chicken” case
The First New Deal Assessed1934, New Deal successes:
Unemployment down Wages up Banks, stocks stable
Limitations: Unemployment Racism, sexism
Voices of Protest
From the Right: Herbert Hoover
Big governmentCurtail freedoms
American Liberty LeagueNew Deal anti-businessPresident too powerfulTaxes
Newspapers
Voices of Protest
From the Left: Upton Sinclair
Run for gov. of CA 1934EPICCooperativesCampaign undermined
Voices of Protest
From the Left: Huey Long
Gov., senator from LAPublic works“Share Our Wealth”
Free educationFoodMin. and max. salariesOld age pensionsVeterans’ benefits
Assass. By Dr. Carl Weiss
Voices of ProtestFrom the Left:
Father Charles CoughlinCatholicDetroitRadioPolitical views
Dr. Francis TownsendOld age pensions
Second New Deal
Conditions: Popular support Pressure from the left Agencies in place Frustration with the courts Deficit spending
1935 Emergency Relief Appropriations Act
Works Progress Administration Harry Hopkins $1.5 billion
Resettlement Administration Rexford Tugwell “Greenbelt” towns
Federal Theater Project etc.
Wagner Act
Robert Wagner Unions Strikes Yellow-dog contracts Agricultural workers
Social Security Act
Frances Perkins Payroll tax Old age pensions Unemployment compensation Aid to dependent children Limitations
Fair Labor Standards Act
June 1938 Child labor Minimum wage Limit work hours
Election of 1936
Popularity “Roosevelt coalition” Alfred Landon, KA Pop. Vote:
28 mil - 17 mil
Elec. Vote:523 - 8
Court Packing Schecter v. USU.S. v. Butler The Plan
Judges over 70 Allies:
Court too powerfulEase case load
Opponents:FDR too powerfulNo warning
Defeated FDR wins the war
Other problems
Labor clashes Memorial Day Massacre
The South 1938 elections
The “Roosevelt Recession”
The Roosevelt RecessionThe recessionCauses:
WPA cuts Social Security tax Labor tensions Less $$ circulating
Response $5 bil - “prime the pump” Work relief Tax cuts
The End of the New Deal
Republican rebound Shortcomings:
Blacks and womenEconomyLabor
Successes:New Deal coalitionWelfare stateUnited the nation