The 1930The 1930’’ssBoom to BustBoom to Bust

Squatter and her ShackSquatter and her Shack

Dust Storm 1933Dust Storm 1933

Civil Conservation Corps – planting a Civil Conservation Corps – planting a fieldfield

The Great The Great DepressionDepression

The Late 20The Late 20’’s - Pre-Crashs - Pre-Crash People were secure with the economy and the People were secure with the economy and the

stock market was very strong. stock market was very strong. In 1928 Hoover said: In 1928 Hoover said: ““We in America today are We in America today are

nearer to the final triumph over poverty than ever nearer to the final triumph over poverty than ever before in the history of any land. The poorhouse before in the history of any land. The poorhouse is vanishing from among us.is vanishing from among us.””

““Real wagesReal wages”” - what money could actually buy - what money could actually buy The Stock Market: The Stock Market:

SpeculatingSpeculating in the market i.e. taking a chance. in the market i.e. taking a chance. Buy on marginBuy on margin they paid for a fraction of the they paid for a fraction of the

price of the stock and borrowed the rest.price of the stock and borrowed the rest. Welfare capitalismWelfare capitalism

New York Stock Exchange

The Late 20The Late 20’’s - Pre-Crashs - Pre-CrashSigns of troubleSigns of trouble:: 1) There were massive business inventories backup1) There were massive business inventories backup 2) Lack of diversification in American economy – mostly construction and 2) Lack of diversification in American economy – mostly construction and

automobile industries.automobile industries. 3) Poor distribution of purchasing power among consumers 3) Poor distribution of purchasing power among consumers

The wealth was concentrated in a few families The wealth was concentrated in a few families Farmers and factory workers were unable to maintain economic growth.Farmers and factory workers were unable to maintain economic growth. Farm income declined 66% from 1920 to 1929.Farm income declined 66% from 1920 to 1929.

There was a myth of prosperityThere was a myth of prosperity

The Late 20The Late 20’’s - Pre-Crashs - Pre-CrashSigns of trouble cont.Signs of trouble cont. 4) Huge credit problems4) Huge credit problems

Steady stream of bank failures in late 1920s as customers (many of them Steady stream of bank failures in late 1920s as customers (many of them farmers) were unable to pay mortgages. farmers) were unable to pay mortgages.

Buying on credit or Buying on credit or installment plansinstallment plans Buy stock Buy stock on Marginon Margin - like installment buying, you only paid 10-15% of - like installment buying, you only paid 10-15% of

the full price of the stock and borrowed the rest from investors or banks. the full price of the stock and borrowed the rest from investors or banks. 5) Decline in demand for American goods in international trade5) Decline in demand for American goods in international trade

Europe recovered - we are still producing at the war rate.Europe recovered - we are still producing at the war rate. Germany canGermany can’’t pay reparationst pay reparations Other european countries cannot pay their debt to us. Other european countries cannot pay their debt to us. High protective tariffs discouraged trade – hurting the farmers even more!High protective tariffs discouraged trade – hurting the farmers even more!

The Stock Market CrashThe Stock Market Crash Dow Jones Industrial AvDow Jones Industrial Av. – was the av. of stock . – was the av. of stock

prices of the leading industries.prices of the leading industries. By October 1929, margin buying had reached $8.5 By October 1929, margin buying had reached $8.5

billion in loans to stock purchasers after this peak billion in loans to stock purchasers after this peak prices fell slowly prices fell slowly

Black ThursdayBlack Thursday - October 24, 1929 people were - October 24, 1929 people were beginning to sell their shares.beginning to sell their shares.

Black TuesdayBlack Tuesday - October 29, 1929 - October 29, 1929 On this day the On this day the most shares were sold ever most shares were sold ever

November the Dow had fallen from 381to 198.7 November the Dow had fallen from 381to 198.7 pts. pts.

December about $40billion in stock had been lost.December about $40billion in stock had been lost. Most people lost everythingMost people lost everything Banks were hit hard and had to close when people Banks were hit hard and had to close when people

tried to get their savings out at the same time.tried to get their savings out at the same time. Gross National Product (GNP) went from 103 Gross National Product (GNP) went from 103

billion to 56 billion billion to 56 billion

The Stock Market CrashThe Stock Market CrashBetween 1929 and 1933Between 1929 and 1933 100,000 businesses failed 100,000 businesses failed Corporate profits fell from $10 billion to $1 Corporate profits fell from $10 billion to $1

billon billon Over 6000 banks failed with over $9 million lostOver 6000 banks failed with over $9 million lost 25% of the work force was unemployed25% of the work force was unemployed Malnutrition, tuberculosis, typhoid and Malnutrition, tuberculosis, typhoid and

dysentery increased. dysentery increased. Large numbers of homeless workers roamed the Large numbers of homeless workers roamed the

U.S., particularly the Southwest, seeking workU.S., particularly the Southwest, seeking work

HooverHoover’’s Reactions Reaction The problems of the depression were beyond U.S. control and confidence in the The problems of the depression were beyond U.S. control and confidence in the

economy was the key to recoveryeconomy was the key to recovery Against govAgainst gov’’t welfaret welfare – Hoover thought that it was undermining to character – Hoover thought that it was undermining to character

and individualism. Instead he urged Americans to turn to community and and individualism. Instead he urged Americans to turn to community and church resourceschurch resources

Hoover began to use federal agencies to address Hoover began to use federal agencies to address issues:issues: 1. He met with business and labor leaders to 1. He met with business and labor leaders to

reduce layoffs and strikes reduce layoffs and strikes 2. 2. Reconstruction Finance CorporationReconstruction Finance Corporation (RFC) (RFC)

1932 to make loans to stimulate economy 1932 to make loans to stimulate economy John Maynard KeynesJohn Maynard Keynes – An eng economist said – An eng economist said

that large govt spending could help a collapsing that large govt spending could help a collapsing economy. economy.

3. Financed 3. Financed federal work projectsfederal work projects, such as , such as massive dams in the West (Boulder, Hoover, and massive dams in the West (Boulder, Hoover, and Grand Coulee)Grand Coulee)

4. 4. Hawley-Smoot TariffHawley-Smoot Tariff - Raised tariffs 33% in - Raised tariffs 33% in attempt to keep foreign goods off the U.S. attempt to keep foreign goods off the U.S. market.market.

Effects of the DepressionEffects of the Depression Hoover tried – but was an easy scapegoatHoover tried – but was an easy scapegoat Bonus ArmyBonus Army – WWI vets wanted their pensions – WWI vets wanted their pensions HoovervillesHoovervilles - homeless shanty towns - homeless shanty towns Humor - Hoover gardens, Hoover flags, Hoover Humor - Hoover gardens, Hoover flags, Hoover

blankets blankets Dust Bowl – not only did farmers loose their farms but Dust Bowl – not only did farmers loose their farms but

a drought made the Great Plains dusty and a drought made the Great Plains dusty and uninhabitable.uninhabitable.

Increase in racial discrimination - Increase in racial discrimination - Scottsboro Boys trialScottsboro Boys trial Socialists gained some groundSocialists gained some ground

Bonus Army HoovervillesHoovervilles

discriminationdiscrimination

1) 1) ______________________ - when you take a chance and - when you take a chance and invest in the stock market.invest in the stock market.

2)2) Buying a stockBuying a stock _________ _________ – when you paid for – when you paid for a fraction of the price of the stock and borrowed a fraction of the price of the stock and borrowed the rest.the rest.

3) On October3) On October ___, _____ ___, _____, also called Black, also called Black _________, _________, the most shares were sold ever and the most shares were sold ever and the stock market crashed.the stock market crashed.

4) 4) ________________________________ – An eng economist said – An eng economist said that large government spending could help a that large government spending could help a collapsing economy. collapsing economy.

1) 1) SpeculatingSpeculating - when you take a chance and invest - when you take a chance and invest in the stock market.in the stock market.

2)2) Buying a stockBuying a stock on marginon margin – when you paid for a – when you paid for a fraction of the price of the stock and borrowed the fraction of the price of the stock and borrowed the rest.rest.

3) On October3) On October 29, 192929, 1929, also called Black, also called Black Tuesday Tuesday, , the most shares were sold ever and the stock the most shares were sold ever and the stock market crashed.market crashed.

4) 4) John Maynard KeynesJohn Maynard Keynes – An eng economist said – An eng economist said that large government spending could help a that large government spending could help a collapsing economy. collapsing economy.

1932 Election: Hoover vs. 1932 Election: Hoover vs. FDRFDR

Republican candidate: Hoover Republican candidate: Hoover Refused to accept any responsibility for the Refused to accept any responsibility for the

economic downturn economic downturn Campaign slogans: "The Worst is PastCampaign slogans: "The Worst is Past““ and and

"Prosperity is Just Around the Corner""Prosperity is Just Around the Corner" Accused FDR of seeking the destruction of Accused FDR of seeking the destruction of

capitalism capitalism Hoover said this election was between two Hoover said this election was between two

ideas of govideas of gov’’t – he didnt – he didn’’t want the big govt want the big gov’’t t

that FDR suggestedthat FDR suggested..

1932 Election: Hoover vs. 1932 Election: Hoover vs. FDRFDR

Democrat candidate: Democrat candidate: Franklin Delano RooseveltFranklin Delano Roosevelt

FDR had been NY senator, Assistant Sec. of FDR had been NY senator, Assistant Sec. of Navy. Navy.

Married wife Married wife EleanorEleanor who was an amazing who was an amazing politcian and activist in her own right.politcian and activist in her own right.

1920 got polio and never walked again 1920 got polio and never walked again unaidedunaided

Offered a Offered a New DealNew Deal for the "forgotten man" for the "forgotten man" and promised a balanced budget along with and promised a balanced budget along with economic reforms economic reforms

Campaign slogan: "Happy Days are Here Campaign slogan: "Happy Days are Here Again" signaled Democratic optimism in Again" signaled Democratic optimism in face of economic problems face of economic problems

His focus was: His focus was: Relief – Recovery – ReformRelief – Recovery – Reform Brain TrustBrain Trust - He surrounded himself with - He surrounded himself with

the best, a group of brilliant social, the best, a group of brilliant social, economic and political thinkers who economic and political thinkers who comprised Roosevelt's cabinet. comprised Roosevelt's cabinet.

1932 Election: Hoover vs. 1932 Election: Hoover vs. FDRFDR

FDR won 57% of the popular vote and Democrats took control FDR won 57% of the popular vote and Democrats took control of both the House and Senate of both the House and Senate

The FDR inaugural address: The FDR inaugural address: ““The only thing we have to fear is The only thing we have to fear is fear itself.fear itself.””

Inauguration – 3/4/1933Blue = HooverRed = FDR

The New DealThe New Deal Second Bonus MarchSecond Bonus March First hundred daysFirst hundred days Bank holiday Bank holiday

Took us off the gold standard Took us off the gold standard Federal Deposit Insurance CorporationFederal Deposit Insurance Corporation FDIC FDIC

First First Fireside ChatFireside Chat – these explained to the public what we was doing. He – these explained to the public what we was doing. He became like a father figure. The 1became like a father figure. The 1stst chat explained the bank holiday and chat explained the bank holiday and banking to the publicbanking to the public

Eleanor Roosevelt

Fireside Chat

The New DealThe New Deal Federal Emergency Relief AdministrationFederal Emergency Relief Administration FERAFERA - -

Led by Harry Hopkins - this agency sent funds to Led by Harry Hopkins - this agency sent funds to depleting local relief agencies. depleting local relief agencies.

Civil Works Administration Civil Works Administration CWACWA Jobs in building or improving roads, park, airports, etc. Jobs in building or improving roads, park, airports, etc.

4 million workers.4 million workers. Civilian Conservation Corps Civilian Conservation Corps CCCCCC Environmental program and put 2.5 million unmarried men Environmental program and put 2.5 million unmarried men

to work maintaining and restoring forests, beaches, and to work maintaining and restoring forests, beaches, and parks. parks.

Indian Reorganization Act of 1934Indian Reorganization Act of 1934 This act ended the sale of tribal lands and restored This act ended the sale of tribal lands and restored

ownership of unallocated lands to Native American ownership of unallocated lands to Native American groups. groups.

CCC Camp

CWA - library

FERA

IRA

The New DealThe New Deal Nation Industrial Recovery Act NIRANation Industrial Recovery Act NIRA

Formed to boost the declining prices by helping businesses and workers: Formed to boost the declining prices by helping businesses and workers: regulating wages, working conditions, production, and prices. It also set a regulating wages, working conditions, production, and prices. It also set a minimum wage. Declared unconstitutional later. minimum wage. Declared unconstitutional later.

Public Works Administration PWAPublic Works Administration PWA Started projects like dams, causeways, and bridges (A part of the NIRA)Started projects like dams, causeways, and bridges (A part of the NIRA)

Agricultural Adjustment Administration AAAAgricultural Adjustment Administration AAA Formed to help farmersFormed to help farmers Home Owners Loan Corporation (HOLC)Home Owners Loan Corporation (HOLC) to refinance mortgages to refinance mortgages Paid farmers not to raise specific crops and animals to lower production to Paid farmers not to raise specific crops and animals to lower production to

increase prices. Declared unconstitutional laterincrease prices. Declared unconstitutional later

PWA

AAA

The New DealThe New Deal Tennessee Valley AuthorityTennessee Valley Authority TVATVA

Helped the Tennessee River valley by reactivating a Helped the Tennessee River valley by reactivating a hydroelectric power plant for cheap electric power, flood hydroelectric power plant for cheap electric power, flood control, and recreational opportunities. control, and recreational opportunities.

Securities and Exchange CommissionSecurities and Exchange Commission SECSEC Regulated the stock market Regulated the stock market full disclosure of information on stocks being sold. full disclosure of information on stocks being sold.

Passage of the 21st Amendment created jobs in the brewing Passage of the 21st Amendment created jobs in the brewing industry and used of excess grain. industry and used of excess grain.

The New Deal was good, but it did not do enough and people The New Deal was good, but it did not do enough and people criticized it or making the govt to big and interfering. criticized it or making the govt to big and interfering.

The Supreme Court also found the NIRA and AAA The Supreme Court also found the NIRA and AAA unconstitutional b/c it gave the president law making powers.unconstitutional b/c it gave the president law making powers.

The Second New DealThe Second New Deal Works Progress AdministrationWorks Progress Administration WPAWPA

Improved schools, hospitals, playgrounds etc. Work for 8 Improved schools, hospitals, playgrounds etc. Work for 8 million Americansmillion Americans

Farm Security Administration FSAFarm Security Administration FSA Loaned more than $1 billion to farmers and set up camps for Loaned more than $1 billion to farmers and set up camps for

migrant workers. migrant workers. Wagner ActWagner Act

Replaced the NIRA helping unionsReplaced the NIRA helping unions It legalized collective bargaining and outlawed spying on It legalized collective bargaining and outlawed spying on

unions and blacklisting. unions and blacklisting. Set up the National Labor Relations Board (NLRB) to enforce Set up the National Labor Relations Board (NLRB) to enforce

its provisionsits provisions

The Second New DealThe Second New Deal Fair Labor Standards Act of 1938Fair Labor Standards Act of 1938

This banned child labor and set a minimum wageThis banned child labor and set a minimum wage Social Security ActSocial Security Act

Provided old-age pensions for workers, survivorProvided old-age pensions for workers, survivor ’’s benefits for victims s benefits for victims of industrial accidents, unemployment insurance, and aid for defendant of industrial accidents, unemployment insurance, and aid for defendant mothers and children, the blind and physically disabled. mothers and children, the blind and physically disabled.

Court PackingCourt Packing Supreme Court had frustrated FDR calling laws unconstitutional. Supreme Court had frustrated FDR calling laws unconstitutional. FDR proposed a reform bill to raise number of justices in the Supreme FDR proposed a reform bill to raise number of justices in the Supreme

CourtCourt FDR claimed he wanted to lessen the work load for the old justices by FDR claimed he wanted to lessen the work load for the old justices by

adding 6 new ones (bring it to 15)adding 6 new ones (bring it to 15)

SupremeCourt 1937

The Dust BowlThe Dust Bowl After WWI dropping grain prices caused farmers to farm more land. After After WWI dropping grain prices caused farmers to farm more land. After

the crash most lost their land, leaving it barren. the crash most lost their land, leaving it barren. At the same time, a seven-year drought began in 193. Many of the farms At the same time, a seven-year drought began in 193. Many of the farms

literally dried up and blew away creating what became known as the literally dried up and blew away creating what became known as the ""Dust BowlDust Bowl." ."

Many moved west to California where they hoped to find work.Many moved west to California where they hoped to find work.

Dust Bowl migrants were called "Dust Bowl migrants were called "OkiesOkies""

Well on the Great Plains Dust Storm

The Dust BowlThe Dust Bowl Why California? Why California?

Long growing season Long growing season There had been a need for workers before the There had been a need for workers before the

depression depression ““Route 66Route 66”” So many went to California, it was really hard to So many went to California, it was really hard to

find a job. find a job. Federal camps opened to help the migrants Arvin Federal camps opened to help the migrants Arvin

Migratory Labor Camp was the first federally Migratory Labor Camp was the first federally operated camp opened by the FSA in 1937operated camp opened by the FSA in 1937

1936 Election1936 Election

Republican candidate: Alfred Landon a Kansas Governor. Republican candidate: Alfred Landon a Kansas Governor. Democrat candidate: FDR Democrat candidate: FDR

FDR carried every state except Maine and Vermont.FDR carried every state except Maine and Vermont.

Blue – LandonRed - FDR

Reactions to the New Deal & ProgramsReactions to the New Deal & Programs WomenWomen: New Deal sort of helped but men and : New Deal sort of helped but men and

boys got preference in relief programs boys got preference in relief programs Eleanor RooseveltEleanor Roosevelt – as a first lady she was – as a first lady she was

tireless worker for social causes including tireless worker for social causes including womenwomen’’s rights and civil rights for African s rights and civil rights for African AmericansAmericans

Frances PerkinsFrances Perkins – Sec. of Labor 1933-1945 – Sec. of Labor 1933-1945 under FDR - first woman cabinet member under FDR - first woman cabinet member

Eleanor Roosevelt & Eleanor Roosevelt & Frances PerkinsFrances Perkins

Reactions to the New Deal & ProgramsReactions to the New Deal & Programs Minorities & AfAmMinorities & AfAm: :

Still lots of discriminationStill lots of discrimination - Southern federal relief - Southern federal relief programs often reinforced segregation. The AFAms programs often reinforced segregation. The AFAms didndidn’’t get the higher paying jobs, and were kept t get the higher paying jobs, and were kept from skilled jobs. from skilled jobs.

Mary McLeod BethuneMary McLeod Bethune - African American educator, - African American educator, New Deal worker, founded Bethune Cookman College, New Deal worker, founded Bethune Cookman College, and advised the National Youth Administration for FDRand advised the National Youth Administration for FDR

Father DivineFather Divine-- AfAm minister -Harlem soup kitchens AfAm minister -Harlem soup kitchens

Mary BethuneMary Bethune

Father DivineFather Divine

Reactions to the New Deal & ProgramsReactions to the New Deal & Programs political right political right – conservative – They thought some of – conservative – They thought some of

the programs were socialists, limited freedom, and FDR the programs were socialists, limited freedom, and FDR gave more taxes. gave more taxes.

political leftpolitical left – radicals – Needed more changes – radicals – Needed more changes Demagogues - this means a charismatic leader who can Demagogues - this means a charismatic leader who can

manipulate people w/ truths, lies and promises and scare manipulate people w/ truths, lies and promises and scare tactics.tactics.

Father Charles CoughlinFather Charles Coughlin - - ““Radio PriestRadio Priest”” who used the who used the radio to spread his views. Attacked the New Dealradio to spread his views. Attacked the New Deal

Senator Huey LongSenator Huey Long Louisiana politician in 1930s also called the Louisiana politician in 1930s also called the

KingfishKingfish ““Share or wealthShare or wealth”” SOW - take large personal SOW - take large personal

fortunes and redistribute them – very socialist – fortunes and redistribute them – very socialist – assassinated in 1935.assassinated in 1935.

Huey LongHuey Long

Father CoughlinFather Coughlin

Legacy of the New DealLegacy of the New Deal Raised the publicRaised the public’’s expectations of the president s expectations of the president Increased gov't spending and the national debtIncreased gov't spending and the national debt Effect on unions Effect on unions Entertainment: Entertainment:

Radio became the main source for entertainment. Radio became the main source for entertainment. Gracie Allen and George BurnsGracie Allen and George Burns Soap Operas Soap Operas Walt Disney Walt Disney

George Burns

Walt Disney

Legacy of the New DealLegacy of the New Deal Famous books:Famous books:

The Good EarthThe Good Earth – by Buck – by Buck The Grapes of WrathThe Grapes of Wrath by Steinbeck by Steinbeck Gone with the WindGone with the Wind by Mitchell by Mitchell Their Eyes Were Watching GodTheir Eyes Were Watching God by Zora Neale Hurston by Zora Neale Hurston