The Depression and the The Depression and the New DealNew Deal

1920’s Politics 1920’s Politics Warren G. Harding 1921-1923 (Died in Office)Warren G. Harding 1921-1923 (Died in Office)

Calvin Coolidge 1925-1929Calvin Coolidge 1925-1929

Herbert Hoover 1929-1933Herbert Hoover 1929-1933 Three Republican presidents led the nation after the Three Republican presidents led the nation after the

turbulence of WWI on the roller coaster of the 1920’s turbulence of WWI on the roller coaster of the 1920’s Sought less direct government to support the public Sought less direct government to support the public

good and relied heavily on cooperation between D.C. good and relied heavily on cooperation between D.C. and Corporations. and Corporations.

Also, United States returned to its tradition of Also, United States returned to its tradition of isolationism and reduced militaryisolationism and reduced military

““I sympathize deeply with you, I sympathize deeply with you,

Madam, but I cannot associate Madam, but I cannot associate with you,” 1923with you,” 1923

President Harding’s President Harding’s secretary of state, Charles secretary of state, Charles Evans Hughes, broke the Evans Hughes, broke the news to a desperate, war-news to a desperate, war-tattered Europe that America tattered Europe that America was going, and staying, was going, and staying, home.home.

The Granger Collection

Warren G. HardingWarren G. Harding

A well-liked man who was known as for his A well-liked man who was known as for his easy going personality and love of peopleeasy going personality and love of people

However, he was overwhelmed with the However, he was overwhelmed with the job and had a difficult time detecting job and had a difficult time detecting morally corrupt friends and confidants. morally corrupt friends and confidants. (Like Grant)(Like Grant)

““He was not a bad man, he was just a He was not a bad man, he was just a slob.” slob.”

Influenced by the “Ohio Gang.” Influenced by the “Ohio Gang.”

Warren G. HardingWarren G. Harding

His cabinetHis cabinet Charles Evans Hughes- Secretary of StateCharles Evans Hughes- Secretary of State Andrew Mellon- Secretary of the TreasuryAndrew Mellon- Secretary of the Treasury Herbert Hoover- Secretary of CommerceHerbert Hoover- Secretary of Commerce Albert Fall- Secretary of the InteriorAlbert Fall- Secretary of the Interior Harry Daugherty- Attorney GeneralHarry Daugherty- Attorney General

Albert Fall considered a wolf in sheep Albert Fall considered a wolf in sheep clothing. clothing.

Daugherty was essentially a big time crookDaugherty was essentially a big time crook

1920’s Politics1920’s Politics

As Harding assembled his team, it was As Harding assembled his team, it was apparent the old guard Republicans, apparent the old guard Republicans, lovers of laissez-faire and big business lovers of laissez-faire and big business returned to Washington. Idea that returned to Washington. Idea that Washington was there to help business Washington was there to help business make hefty profitsmake hefty profits

This essentially ended the reforms of the This essentially ended the reforms of the Progressive era with Harding’s electionProgressive era with Harding’s election

Supreme CourtSupreme Court

Harding lived less than 3 years as President but Harding lived less than 3 years as President but appointed 4 justicesappointed 4 justices

Chief justice was ex-president Taft. Chief justice was ex-president Taft. Harding’s Supreme CourtHarding’s Supreme Court

Killed federal child labor lawsKilled federal child labor laws Stripped away gains by laborStripped away gains by labor Restricted government intervention in the economyRestricted government intervention in the economy Adkins v Children’s Hospital-revered Muller v. OregonAdkins v Children’s Hospital-revered Muller v. Oregon

• Leads to debate about legal equality of womenLeads to debate about legal equality of women

Big BusinessBig Business

Flourished under Harding as Anti-trust Flourished under Harding as Anti-trust laws were ignoredlaws were ignored

For example, ICC led by men sympathetic For example, ICC led by men sympathetic to railroad industrialists to railroad industrialists

Idea that businesses should regulate Idea that businesses should regulate themselves and not the government themselves and not the government regulate business dominated under regulate business dominated under Harding and his cabinet. Harding and his cabinet.

Aftermath of WarAftermath of War

Wartime government controls were stopped Wartime government controls were stopped once the war endedonce the war ended War Industries Board- Dismantled almost immediatelyWar Industries Board- Dismantled almost immediately Railroads returned to private management after the Railroads returned to private management after the

warwar• Esch-Cummings Transportation Act- not save the country Esch-Cummings Transportation Act- not save the country

from railroads, but save the railroads for the countryfrom railroads, but save the railroads for the country Labor Unions also were harmed by the Republican Labor Unions also were harmed by the Republican

policiespolicies• Union membership declined by 30 percent and federal Union membership declined by 30 percent and federal

government used injunctions to break strikesgovernment used injunctions to break strikes

Veteran’s BureauVeteran’s Bureau

Established in 1921 to operate hospitals Established in 1921 to operate hospitals provide vocational rehabilitation for provide vocational rehabilitation for disabled veteransdisabled veterans

American Legion formed.American Legion formed. Many soldiers demanded compensation Many soldiers demanded compensation

for the war in lost wagesfor the war in lost wages Adjusted Compensation Act- passed in Adjusted Compensation Act- passed in

1924. 1924.

Peace with Germany and Foreign Peace with Germany and Foreign PolicyPolicy

July 1921, Congress passed a joint resolution July 1921, Congress passed a joint resolution that the war had ended. (Had to do this because that the war had ended. (Had to do this because US did not sign the Treaty of Versailles)US did not sign the Treaty of Versailles)

Middle East gained importance geopolitically as Middle East gained importance geopolitically as oil was deemed vital to defense and also oil was deemed vital to defense and also domestic consumptiondomestic consumption

Hughes secured vital concessions for Americans Hughes secured vital concessions for Americans to share in the oil of the Middle eastto share in the oil of the Middle east

Washington Conference Washington Conference

Intended to reduce the size of Navies and Intended to reduce the size of Navies and also situation in Far Eastalso situation in Far East

Hughes PlanHughes Plan 10 year suspension of the building of 10 year suspension of the building of

battleships and even scraping some already battleships and even scraping some already builtbuilt

Wanted a ratio of 5:5:3 for size of British, Wanted a ratio of 5:5:3 for size of British, American, and Japanese naviesAmerican, and Japanese navies

Five Power Naval TreatyFive Power Naval Treaty

Ratio of 5:5:3 was kept, but Japan was Ratio of 5:5:3 was kept, but Japan was compensated for accepting it. compensated for accepting it.

British and Americans agreed to not fortify Far British and Americans agreed to not fortify Far East possessionsEast possessions

Four Power Treaty- France, Britain, Japan and Four Power Treaty- France, Britain, Japan and US agreed to a status quo in Navies in the US agreed to a status quo in Navies in the Pacific Pacific

But all this was fake, because no limit on small But all this was fake, because no limit on small ships. So cruisers, destroyers and submarines ships. So cruisers, destroyers and submarines were built. were built.

Washington Disarmament Washington Disarmament ConferenceConference(1921-1922)(1921-1922)

5 Long-standing Anglo-Japanese alliance (1902) obligated Long-standing Anglo-Japanese alliance (1902) obligated Britain to aid Japan in the event of a Japanese war with Britain to aid Japan in the event of a Japanese war with the United States.the United States.

5 Goals Goals naval disarmament and the political situation in naval disarmament and the political situation in the the Far East. Far East.

Five-Power Treaty Five-Power Treaty (1922)(1922)5 A battleship ratio was achieved through this ratio:A battleship ratio was achieved through this ratio:

US Britain Japan France US Britain Japan France ItalyItaly 5 5 3 1.67 5 5 3 1.67 1.671.67

5 Japan got a guarantee that the US and Britain Japan got a guarantee that the US and Britain would stop fortifying their Far East territories would stop fortifying their Far East territories [including the Philippines].[including the Philippines].

5 LoopholeLoophole no restrictions on small warships no restrictions on small warships

Kellogg-Briand PactKellogg-Briand Pact

In 1928, signed by 62 nations, outlawed In 1928, signed by 62 nations, outlawed war. war.

But defensive wars still allowed.But defensive wars still allowed. Lacked muscle and teethLacked muscle and teeth But it reflected America’s desire to have But it reflected America’s desire to have

security, even if it was under false security, even if it was under false pretenses. pretenses.

Tariff under HardingTariff under Harding In 1922, Congress passed the Fordney-McCumber In 1922, Congress passed the Fordney-McCumber

Tariff. Tariff. Set rates at 38.5 percentSet rates at 38.5 percent

Tariff CommissionTariff Commission Allowed the President to change rates based on need up to 50 Allowed the President to change rates based on need up to 50

percent percent Harding and Coolidge increased rates 32 times and only Harding and Coolidge increased rates 32 times and only

reduced 5 timesreduced 5 times High Tariffs were detrimental to European recovery- High Tariffs were detrimental to European recovery-

Why?Why? 1. Europeans needed to sell their goods to pay back U.S. loans1. Europeans needed to sell their goods to pay back U.S. loans 2. U.S needed other nations to gain in wealth by selling their 2. U.S needed other nations to gain in wealth by selling their

goods so that they could buy American goods and also repay goods so that they could buy American goods and also repay loans.loans.

U.S. misunderstood that international trade is a 2-way streetU.S. misunderstood that international trade is a 2-way street In response, the Europeans raised their tariff rates, which all In response, the Europeans raised their tariff rates, which all

together slowed European economic recoverytogether slowed European economic recovery

Harding ScandalsHarding Scandals Forbes ScandalForbes Scandal

Head of the Veterans BureauHead of the Veterans Bureau• Appointed by HardingAppointed by Harding• He and his accomplices looted the federal government of nearly 200 He and his accomplices looted the federal government of nearly 200

million dollarsmillion dollars

Teapot Dome ScandalTeapot Dome Scandal Albert Fall, secretary of the InteriorAlbert Fall, secretary of the Interior

• Gave precious oil reserves at Teapot Dome and Elk Hills to two Gave precious oil reserves at Teapot Dome and Elk Hills to two business associates in exchange for kickback money. business associates in exchange for kickback money.

• Harding signed secret order to turn over the reserves to the Harding signed secret order to turn over the reserves to the Department of InteriorDepartment of Interior

Teapot Dome made many question the moral fabric of Teapot Dome made many question the moral fabric of Washington since precious resources for the Navy were sold for Washington since precious resources for the Navy were sold for individual profit. Trust in the government wanedindividual profit. Trust in the government waned

Also, fact that the bribers did not get jail time also ruined Also, fact that the bribers did not get jail time also ruined people’s trust in the courts, making many belive that only the rich people’s trust in the courts, making many belive that only the rich got offgot off

Corruption ran rampant during the Harding administration, the most famous Corruption ran rampant during the Harding administration, the most famous example being the Teapot Dome Sandal of 1922. High ranking officials in the example being the Teapot Dome Sandal of 1922. High ranking officials in the Department of the Interior and the secretary of the navy, transferred priceless Department of the Interior and the secretary of the navy, transferred priceless naval oil reserves to the Interior Department and from there illicitly leased those naval oil reserves to the Interior Department and from there illicitly leased those properties to leading oilmen for bribe "loans." Although none of this directly properties to leading oilmen for bribe "loans." Although none of this directly involved Harding himself, he blindly signed the paperwork authorizing the deal involved Harding himself, he blindly signed the paperwork authorizing the deal and the stigma of the long, difficult trial overhung the rest of his term in office.and the stigma of the long, difficult trial overhung the rest of his term in office.

Washington Officials Trying to Outpace the Teapot Dome Washington Officials Trying to Outpace the Teapot Dome Scandal, c. 1922Scandal, c. 1922

The Granger Collection

Harding ScandalsHarding Scandals

Daugherty ScandalDaugherty Scandal Illegal sales of pardons and liquor permitsIllegal sales of pardons and liquor permits

Harding was implicated but not deemed fully Harding was implicated but not deemed fully responsible in each of these scandals. responsible in each of these scandals.

On speechmaking tour to Alaska, he died from On speechmaking tour to Alaska, he died from complications from a heart attack and complications from a heart attack and pneumonia in San Francisco. pneumonia in San Francisco.

Harding was not strong enough leader and judge Harding was not strong enough leader and judge of character. Consequently, government had of character. Consequently, government had worst scandals since Grant’s administrationworst scandals since Grant’s administration

Silent CalSilent Cal

Calvin Coolidge was sworn in as president by his father Calvin Coolidge was sworn in as president by his father at their family farmhouse. at their family farmhouse.

Coolidge embodied New England characteristics of Coolidge embodied New England characteristics of morality, honesty, industry, and frugalitymorality, honesty, industry, and frugality

A mediocre leader, he was prone to bouts of silence and A mediocre leader, he was prone to bouts of silence and was not a great public speakerwas not a great public speaker

““man who builds a factory builds a temple”man who builds a factory builds a temple” ““man who works there worships there”man who works there worships there”

Supporter of Big Business like his predecessor. Supporter of Big Business like his predecessor. But his five years in office were full of economic growth But his five years in office were full of economic growth

and gain. He was thoroughly hands off and supported and gain. He was thoroughly hands off and supported Mellon's reduced taxes and debt philosophies Mellon's reduced taxes and debt philosophies

Business croons its appreciation of “Coolidge prosperity.”Business croons its appreciation of “Coolidge prosperity.”Cash Register ChorusCash Register Chorus

Used by permission, State Historical Society of Missouri, Columbia

Farmer’s Plight (again)Farmer’s Plight (again) Wartime brought enormous profits as \the government Wartime brought enormous profits as \the government

gave high prices and foreign demands increased as gave high prices and foreign demands increased as foreign supply decreased.foreign supply decreased.

But, post war period during 20’s was a tough one for But, post war period during 20’s was a tough one for farmers.farmers.

No more government high pricesNo more government high prices Less foreign demandLess foreign demand More foreign competitionMore foreign competition

Also, the tractor allowed for more cultivation of land and Also, the tractor allowed for more cultivation of land and higher outputs by farmers. Less horses, less hired higher outputs by farmers. Less horses, less hired hands, but a crap load of surplus as at a time when hands, but a crap load of surplus as at a time when world prices were decreasing. world prices were decreasing.

So, farmers are going in debt again as they purchase So, farmers are going in debt again as they purchase more land and more equipment, but food prices do not more land and more equipment, but food prices do not support growth. support growth.

Library of Congress

Just as the automobile replaced the horse on city streets, so did the gas-Just as the automobile replaced the horse on city streets, so did the gas-engine tractor replace horses and mules on the nation’s farms in the engine tractor replace horses and mules on the nation’s farms in the 1920s. American farmers owned ten times more tractors in 1930 than 1920s. American farmers owned ten times more tractors in 1930 than they had in 1920. The smoke-belching tractors bolstered productivity but they had in 1920. The smoke-belching tractors bolstered productivity but also increased the farmers’ debt burden, as the Great Depression made also increased the farmers’ debt burden, as the Great Depression made tragically clear.tragically clear.

Farmer’s HelpFarmer’s Help

Capper-Volstead ActCapper-Volstead Act Farmers marketing cooperatives were except from Farmers marketing cooperatives were except from

Anti-trust lawsAnti-trust laws

McNary-Haugen BillMcNary-Haugen Bill Have government buys surpluses and sell them Have government buys surpluses and sell them

aboard (keep prices high then)aboard (keep prices high then) Government losses would be recouped by a tax on Government losses would be recouped by a tax on

farmers (Coolidge vetoed bill twice)farmers (Coolidge vetoed bill twice)

So in 1924, farmers were pretty annoyed and So in 1924, farmers were pretty annoyed and angryangry

Presidential Election of 1924 (showing Presidential Election of 1924 (showing popular vote by county)popular vote by county)

Copyright (c) Houghton Mifflin Company. All Rights Reserved.

Note the concentration of La Follette’s votes in the old Populist Note the concentration of La Follette’s votes in the old Populist strongholds of the Midwest and the mountain states. His ticket did strongholds of the Midwest and the mountain states. His ticket did especially well in the grain-growing districts battered by the postwar especially well in the grain-growing districts battered by the postwar slump in agricultural prices.slump in agricultural prices.

1924 Election1924 Election Republicans choose CoolidgeRepublicans choose Coolidge Democrats are splitDemocrats are split

Wet v dryWet v dry Urbanites v farmersUrbanites v farmers Fundamentalists v modernistsFundamentalists v modernists Immigrants v nativistsImmigrants v nativists South v North South v North Deadlocked for 102 ballotsDeadlocked for 102 ballots Nominated John DavisNominated John Davis

La Follette of Wisconsin lead a revival of Progressive La Follette of Wisconsin lead a revival of Progressive Party and gained their nomination (mostly supported by Party and gained their nomination (mostly supported by farmers) farmers)

Polled 5 million votesPolled 5 million votes La Follettr brought a liberal voice to the conversation in the La Follettr brought a liberal voice to the conversation in the

mostly conservative 20’s mostly conservative 20’s

Foreign PolicyForeign Policy

Isolationism ruled the day, except for in Isolationism ruled the day, except for in the Caribbean and Latin Americathe Caribbean and Latin America Troops withdrawn from Dominican republic in Troops withdrawn from Dominican republic in

19241924 Troops in Haiti from 1914-1934Troops in Haiti from 1914-1934 Nicaragua, troops removed but returned in Nicaragua, troops removed but returned in

19261926 Oil in Mexico almost led to guns being shot, Oil in Mexico almost led to guns being shot,

but caused Mexico to further distrust US. but caused Mexico to further distrust US.

DebtDebt

10 Billion owed to US.10 Billion owed to US. They want their moneyThey want their money France and Britain say noFrance and Britain say no

• Paid price in men waiting for AmericansPaid price in men waiting for Americans• America got rich and out of recession due to war.America got rich and out of recession due to war.• America had huge tariffs making it impossible to America had huge tariffs making it impossible to

pays debtspays debts• France and Britain also needed money from France and Britain also needed money from

Germany and wanted it Germany and wanted it

European Debts to the USEuropean Debts to the US

Hyper-Inflation in Germany:Hyper-Inflation in Germany: 19231923

Dawes PlanDawes Plan (1924)(1924)

Aspects of the Financial Merry-go-round, Aspects of the Financial Merry-go-round, 1921–19331921–1933

Copyright (c) Houghton Mifflin Company. All Rights Reserved.

Great Britain, with a debt of over $4 billion owed to the U.S. Treasury, Great Britain, with a debt of over $4 billion owed to the U.S. Treasury, had a huge stake in proposals for inter-Allied debt cancellation, but had a huge stake in proposals for inter-Allied debt cancellation, but France’s stake was even larger. Less prosperous than Britain in the France’s stake was even larger. Less prosperous than Britain in the 1920s and more battered by the war, which had been fought on its soil, 1920s and more battered by the war, which had been fought on its soil, France owed nearly $3.5 billion to the United States and additional France owed nearly $3.5 billion to the United States and additional billions to Britain.billions to Britain.

1928 Election1928 Election

Democrats:Democrats: Nominated 4-time governor Alfred SmithNominated 4-time governor Alfred Smith

• Very colorful personality (wisecracking, hobnobbing, backslapping, Very colorful personality (wisecracking, hobnobbing, backslapping, and a known “wet.”)and a known “wet.”)

• Very urbanVery urban• Very Catholic Very Catholic • So, many Fundamentalist southerners who were very dry and very So, many Fundamentalist southerners who were very dry and very

rural were against his nomination and aligned him with a very rural rural were against his nomination and aligned him with a very rural and dry vice-presidentand dry vice-president

RepublicansRepublicans Herbert HooverHerbert Hoover

Radio plays a significant role in the election for the first Radio plays a significant role in the election for the first time, with Hoover coming across much better than time, with Hoover coming across much better than Smith.Smith.

Herbert HooverHerbert Hoover Living example of American Living example of American

success storysuccess story Poor orphaned boy who Poor orphaned boy who

worked hard to go to Stanfordworked hard to go to Stanford Embodied rugged Embodied rugged

individualism, industry, self-individualism, industry, self-reliance, and thriftreliance, and thrift

Worked extensively abroad Worked extensively abroad which helped him appreciate which helped him appreciate American even more. American even more. Championed individualism, Championed individualism, free enterprise and small free enterprise and small governmentgovernment

However, never elected to However, never elected to public office, so not prepared public office, so not prepared for the campaign trail nor the for the campaign trail nor the life of a politician seeking life of a politician seeking votesvotes

Herbert HooverHerbert Hoover The ideal businessman candidateThe ideal businessman candidate

Self-made millionaireSelf-made millionaire Anti-socialism, paternalism, or planned economyAnti-socialism, paternalism, or planned economy However, some progressive leaningsHowever, some progressive leanings

• Endorsed labor unions as Secretary of Commerce and Endorsed labor unions as Secretary of Commerce and allowed regulation of radio (even considered a government allowed regulation of radio (even considered a government owned radio like the BBC)owned radio like the BBC)

Campaign of 1928Campaign of 1928 Smear campaign by both sides, but not necessarily Smear campaign by both sides, but not necessarily

Smith and HooverSmith and Hoover• ““A vote for Smith is a vote for the Pope.” A vote for Smith is a vote for the Pope.” • Rum, Romanism, and Ruin”Rum, Romanism, and Ruin”• Smith doomed by the fact he was a Catholic, a wet, an Smith doomed by the fact he was a Catholic, a wet, an

urbanite and liberal. Southern democrats voted Hoover and urbanite and liberal. Southern democrats voted Hoover and not Smith not Smith

Presidential Election of 1928 (with electoral votePresidential Election of 1928 (with electoral vote

Copyright (c) Houghton Mifflin Company. All Rights Reserved.

Smith, despite his defeat, managed to poll almost as many votes as the Smith, despite his defeat, managed to poll almost as many votes as the victorious Coolidge had in 1924. By attracting to the party an immense victorious Coolidge had in 1924. By attracting to the party an immense urban or “sidewalk” vote, the breezy New Yorker foreshadowed urban or “sidewalk” vote, the breezy New Yorker foreshadowed Roosevelt’s New Deal victory in 1932, when the Democrats patched Roosevelt’s New Deal victory in 1932, when the Democrats patched together the solid South and the urban North. A cruel joke had Smith together the solid South and the urban North. A cruel joke had Smith cabling the Pope a single word after the election: “Unpack.”cabling the Pope a single word after the election: “Unpack.”

Hoover’s First MovesHoover’s First Moves

Aiding FarmersAiding Farmers Hoover’s administration believed in self-help. Hoover’s administration believed in self-help.

• Agricultural Marketing Act Agricultural Marketing Act Help farmers form producers cooperativesHelp farmers form producers cooperatives

• Federal Farm BoardFederal Farm Board 500 million at their disposal that was lent to farm 500 million at their disposal that was lent to farm

organizations to buy, sell, and store surplusesorganizations to buy, sell, and store surpluses

• Grain Stabilization and Cotton Stabilization Grain Stabilization and Cotton Stabilization CooperationCooperation

1930- Goal was to buy up surpluses and help with 1930- Goal was to buy up surpluses and help with sagging pricessagging prices

Smoot-Hawley Tariff of 1930Smoot-Hawley Tariff of 1930

Started in the House to protect farmers, but by Started in the House to protect farmers, but by time got through he Senate, it had over a time got through he Senate, it had over a thousand amendments (lobbyists)thousand amendments (lobbyists)

Highest protective tariff in peacetimeHighest protective tariff in peacetime Raised the Fordney-McCumber from 38.5 to 60 Raised the Fordney-McCumber from 38.5 to 60

percentpercent Foreigners saw this as tantamount to economic Foreigners saw this as tantamount to economic

warfarewarfare Plunge nations into deeper recessionPlunge nations into deeper recession Forced US into economic isolationForced US into economic isolation And strained the international financial chaos of 1930And strained the international financial chaos of 1930

The Great CrashThe Great Crash

Oct. 29, 1929 is known as Black TuesdayOct. 29, 1929 is known as Black Tuesday Nation was appeared destined to continued progress, but dark Nation was appeared destined to continued progress, but dark

cloud hung overheadcloud hung overhead• Stock prices continued to rise unnaturallyStock prices continued to rise unnaturally• America was buying too much on creditAmerica was buying too much on credit• Farm belt in Midwest was drown in debtFarm belt in Midwest was drown in debt• Progress was built in many ways on “fool’s paradise of paper Progress was built in many ways on “fool’s paradise of paper

profits.”profits.”

On black Tuesday, investors started to dumb their On black Tuesday, investors started to dumb their stocks, and 16,410,030 stocks sold on that day. stocks, and 16,410,030 stocks sold on that day.

2 months after the crash, total losses equaled 40 Billion 2 months after the crash, total losses equaled 40 Billion dollars. More than the cost of World War I for the United dollars. More than the cost of World War I for the United StatesStates

Effects of the CrashEffects of the Crash

The Crash was the impetus that pushed the The Crash was the impetus that pushed the world over the precipice to economic depression world over the precipice to economic depression that is the worst in US historythat is the worst in US history End of 1930, 4 million unemployed.End of 1930, 4 million unemployed. By 1932, their were 12 million unemployed By 1932, their were 12 million unemployed Salaries and wages were slashedSalaries and wages were slashed Work nearly impossible to findWork nearly impossible to find 5,000 banks closed, along with life savings and 5,000 banks closed, along with life savings and

people’s moneypeople’s money Breadlines and soup lines were long and filled with Breadlines and soup lines were long and filled with

many previously wealthy and middle class familiesmany previously wealthy and middle class families

The Unemployed, by John Langley The Unemployed, by John Langley Howard, 1937Howard, 1937

Oakland Museum

In this painting Howard soberly evokes the dispirited state of In this painting Howard soberly evokes the dispirited state of millions of unemployed Americans during the depression.millions of unemployed Americans during the depression.

Causes of the Great DepressionCauses of the Great Depression _a) Unequal distribution of wealth, income and _a) Unequal distribution of wealth, income and purchasing power among the classes. purchasing power among the classes. _b) Overexpansion of agricultural production left over _b) Overexpansion of agricultural production left over from WWI. from WWI. _c) Overproduction of industrial output. _c) Overproduction of industrial output. _d) Automation _d) Automation _e) Unregulated banking practices _e) Unregulated banking practices _f) American tariff policies (Smoot Hawley)_f) American tariff policies (Smoot Hawley) _g) Impact of European and world economy _g) Impact of European and world economy _h) Monopolistic pricing _h) Monopolistic pricing _i) Philosophy and policies of the Harding – Hoover _i) Philosophy and policies of the Harding – Hoover

administrations. administrations. _j) Overexpansion of credit _j) Overexpansion of credit _k) Stock market speculation _k) Stock market speculation

““Hooverville” in Seattle, 1934Hooverville” in Seattle, 1934

© Bettmann/ CORBIS

In the early years of the depression, desperate, homeless people In the early years of the depression, desperate, homeless people constructed shacks out of scavenged materials. These constructed shacks out of scavenged materials. These shantytowns sprang up in cities across the country.shantytowns sprang up in cities across the country.

Hoover’s ResponseHoover’s Response Hoover was not prepared (nor should have been Hoover was not prepared (nor should have been

expected to be) to address the turmoil of the crash and expected to be) to address the turmoil of the crash and depressiondepression

Hoover struggled with two conflicting ideasHoover struggled with two conflicting ideas 1. He is a humanitarian and wished to help people1. He is a humanitarian and wished to help people 2. he supported limited government and believed in self help, not 2. he supported limited government and believed in self help, not

governmental help. governmental help. Strong believer in the virtues of industry, thrift, and self Strong believer in the virtues of industry, thrift, and self

reliance, he felt that giving out government dole would reliance, he felt that giving out government dole would destroy the national ethos. destroy the national ethos.

However, after realizing that people were in dire need of However, after realizing that people were in dire need of help, he accepted the idea that the “welfare of the people help, he accepted the idea that the “welfare of the people in a nationwide catastrophe is a direct concern of the in a nationwide catastrophe is a direct concern of the federal government.” federal government.”

Hoover’s ResponseHoover’s Response In attempt to help, Hoover decided to directly aid In attempt to help, Hoover decided to directly aid

the railroads, banks, and rural credit institutionsthe railroads, banks, and rural credit institutions Idea is that if the top of the economic pyramid is Idea is that if the top of the economic pyramid is

assisted, then unemployment would improve through assisted, then unemployment would improve through a trickle down approach. a trickle down approach.

Many criticized that the man who fed Belgians on Many criticized that the man who fed Belgians on government money would not feed Americans, but government money would not feed Americans, but bailed out large corporationsbailed out large corporations

However, it is likely that Hoover’s policies However, it is likely that Hoover’s policies prevented the depression from getting worse, prevented the depression from getting worse, and also laid the groundwork for FDR’s New and also laid the groundwork for FDR’s New DealDeal

Hoover’s ResponseHoover’s Response Hoover also got Congress to agree to Hoover also got Congress to agree to

appropriate 2.25 billion dollars for public works appropriate 2.25 billion dollars for public works projectsprojects Hoover DamHoover Dam

In 1932, the Reconstruction Finance CorporationIn 1932, the Reconstruction Finance Corporation 500 million, became a governmental lending bank 500 million, became a governmental lending bank

meant for railroads, insurance companies, banks, meant for railroads, insurance companies, banks, agriculture and state and local governments agriculture and state and local governments

But not for individual citizensBut not for individual citizens Norris-LaGuardia Anti-Injunction ActNorris-LaGuardia Anti-Injunction Act

Outlawed yellow dog contracts and forbade the courts Outlawed yellow dog contracts and forbade the courts to issue injunctions against strikes, boycotts, or to issue injunctions against strikes, boycotts, or peaceful picketing peaceful picketing

Bonus ArmyBonus Army

Bonus Expeditionary Force (BEF) demanded Bonus Expeditionary Force (BEF) demanded from Congress an early payment of their bonus from Congress an early payment of their bonus owed to them in 1945owed to them in 1945

Congress did not pass the early Bonus bill, and Congress did not pass the early Bonus bill, and the army that descended on Washington was the army that descended on Washington was asked to leave.asked to leave.

MacArthur (of WWII fame) forcibly moved the MacArthur (of WWII fame) forcibly moved the Bonus army with bayonets and tear gasBonus army with bayonets and tear gas

Japanese Aggression in ManchuriaJapanese Aggression in Manchuria

The Granger Collection

This American cartoon lambastes Japan for disregarding This American cartoon lambastes Japan for disregarding international treaty agreements when it seized Manchuria in international treaty agreements when it seized Manchuria in 1931. The next year the Japanese would set up the puppet state 1931. The next year the Japanese would set up the puppet state

of Manchukuoof Manchukuo..

Japanese Attack Manchuria Japanese Attack Manchuria (1931)(1931)

5 League of Nations condemned the League of Nations condemned the action.action.

5 Japan leaves the League.Japan leaves the League.

5 Hoover wanted no part in an American military action Hoover wanted no part in an American military action in the Far East.in the Far East.

Hoover-Stimpson Hoover-Stimpson DoctrineDoctrine

(1932)(1932)5 US would not recognize any territorial US would not recognize any territorial

acquisitions that were achieved by force.acquisitions that were achieved by force.

5 Japan was infuriated because the US hadJapan was infuriated because the US hadconquered new conquered new territories a few territories a few decades earlier.decades earlier.

5 Japan bombed Japan bombed Shanghai in Shanghai in 1932 1932 massive massive casualties.casualties.

Clark Memorandum Clark Memorandum (1928)(1928)

5 Clark pledged that the Clark pledged that the US would not intervene US would not intervene in Latin American in Latin American affairs in order to affairs in order to protect US property protect US property rights.rights.

5 This was a complete This was a complete rebuke of the Roosevelt rebuke of the Roosevelt Corollary to the Monroe Corollary to the Monroe Doctrine!Doctrine!

5 Precursor to FDR’s Precursor to FDR’s Good Neighbor PolicyGood Neighbor Policy

Secretary of StateSecretary of StateJ. Reuben ClarkJ. Reuben Clark

FDR’s “Good Neighbor” FDR’s “Good Neighbor” PolicyPolicy

5 Important to have all Important to have all nations in the Western nations in the Western Hemisphere united in Hemisphere united in lieu of foreign lieu of foreign aggressions.aggressions.

5 FDR FDR The good The good neighbor respects neighbor respects himself and the rights himself and the rights of othersof others..

5 Policy of non-Policy of non-intervention and intervention and cooperation.cooperation.

1932 Election1932 Election

Unemployment levels had reached 11 Unemployment levels had reached 11 million people. That accounted for 25% of million people. That accounted for 25% of the workforce.the workforce.

As a result, the election focused on ways As a result, the election focused on ways to alleviate the pain from depression:to alleviate the pain from depression: Republicans: Herbert Hoover nominated with Republicans: Herbert Hoover nominated with

a platform that highlighted his anti-depression a platform that highlighted his anti-depression policies and halfheartedly called for a repeal policies and halfheartedly called for a repeal of prohibition. of prohibition.

1932 Election1932 Election

Democrats turned to Franklin Delano Democrats turned to Franklin Delano Roosevelt, 5Roosevelt, 5thth cousin of Teddy. cousin of Teddy. Former legislature in New York, governor of Former legislature in New York, governor of

New York, candidate for vice-presidency, and New York, candidate for vice-presidency, and also assistant secretary to the navy.also assistant secretary to the navy.

In many ways, Roosevelt's struggle with polio In many ways, Roosevelt's struggle with polio shaped him as a politician. It schooled him in shaped him as a politician. It schooled him in patience, tolerance, compassion, and the patience, tolerance, compassion, and the strength of will. strength of will.

Another great asset was his wife Eleanor.Another great asset was his wife Eleanor.

Eleanor RooseveltEleanor Roosevelt

By far one of the By far one of the strongest first ladies.strongest first ladies.

Known as “Conscience of Known as “Conscience of the New Deal”the New Deal”

Her husband’s political Her husband’s political career was very much career was very much hers as well. hers as well.

Battled for the Battled for the impoverished and the impoverished and the oppressedoppressed

1932 election1932 election FDR believed that money was expendable, but FDR believed that money was expendable, but

not humanity. Consequently, this idea will shape not humanity. Consequently, this idea will shape his policies in trying to curb the Great his policies in trying to curb the Great Depression.Depression.

He was also a great speaker and his record as He was also a great speaker and his record as governor of New York made him an attractive governor of New York made him an attractive option for president. option for president.

Democratic platform:Democratic platform: Repeal of prohibitionRepeal of prohibition Attacked Hoover’s depression policiesAttacked Hoover’s depression policies Sweeping economic and social reformsSweeping economic and social reforms Balanced budgetBalanced budget

1932 Election1932 ElectionFDR won by a landslide. Popular Vote was 57% to 40% and Electoral vote was 472-59.

Overall, American people were Ready to give Roosevelt and theDemocrats a chance at solving The Depression mostly due to theIneffectiveness of Hoover’s Policies.

In this election, marked the first time that black voters moved away from eh Republican party and voted Democratic.

Lame Duck period difficult because Roosevelt did not want to take charge until formally given the role of president. Thus, for a long and agonizing 4 months, the depression got worse.

Three R’s of the New DealThree R’s of the New Deal

ReliefRelief- get people immediate food and shelter- get people immediate food and shelter

RecoveryRecovery-get people jobs, so they have money -get people jobs, so they have money to spend, so that factories and businesses can to spend, so that factories and businesses can hire againhire again

And And ReformReform -make long-term change to the -make long-term change to the laissez-faire capitalistic policies to make it more laissez-faire capitalistic policies to make it more fair and equitable for all Americansfair and equitable for all Americans

Monetary and Banking ReliefMonetary and Banking Relief From March 6-10 1933, Roosevelt declared From March 6-10 1933, Roosevelt declared

them bank holidays to restructure banking to them bank holidays to restructure banking to make it safe again to make deposits. Two make it safe again to make deposits. Two banking laws passed:banking laws passed: Emergency Banking Relief Act of 1933Emergency Banking Relief Act of 1933

• Gave president power to regulate banking transactions and Gave president power to regulate banking transactions and foreign exchange. Also gave him power to reopen solvent foreign exchange. Also gave him power to reopen solvent banks. banks.

Glass-Steagall Banking Reform ActGlass-Steagall Banking Reform Act• Established the FDIC, insured deposits up to 5,000 dollars. Established the FDIC, insured deposits up to 5,000 dollars.

(Today it is $250,000 per account)(Today it is $250,000 per account)• This help end the embarrassment of bank closures and This help end the embarrassment of bank closures and

protected deposits protected deposits

Monetary and Banking ReliefMonetary and Banking Relief To protect against the hoarding of gold and To protect against the hoarding of gold and

protect the dwindling gold reserve, Roosevelt protect the dwindling gold reserve, Roosevelt ordered all private gold to be surrendered to the ordered all private gold to be surrendered to the Treasury in exchange for paper currency. Treasury in exchange for paper currency.

He also took the country off the gold standardHe also took the country off the gold standard Roosevelt established a “managed currency” Roosevelt established a “managed currency”

Goal was inflation to relieve debtors and stimulate Goal was inflation to relieve debtors and stimulate new production. new production.

Gold increased from $21 a ounce to $35 an ounce. Gold increased from $21 a ounce to $35 an ounce. People traded in their gold for the elevated price and People traded in their gold for the elevated price and this helped increase available currency. Thus, this helped increase available currency. Thus, infaltion occurred. infaltion occurred.

This scheme came to an end in February of 1934. This scheme came to an end in February of 1934. Gold standard returned on a limited basis for foreign Gold standard returned on a limited basis for foreign trade. trade.

Further ReliefFurther Relief

Civilian Conservations Corp Civilian Conservations Corp Federal Emergency relief Act Federal Emergency relief Act

(Federal Emergency Relief Administration)(Federal Emergency Relief Administration) Agricultural Adjustment ActAgricultural Adjustment Act Civil Works AdministrationCivil Works Administration All passed in 1933All passed in 1933

Civilian Conservations CorpCivilian Conservations Corp

CCCCCC 3 million uniformed young men sent to work at 3 million uniformed young men sent to work at

camps to perform reforestation and conservation camps to perform reforestation and conservation tasks (firefighting, swamp drainage, flood tasks (firefighting, swamp drainage, flood control). Removed surplus of workers from control). Removed surplus of workers from cities, provided healthy conditions for boys, cities, provided healthy conditions for boys, provided money for familiesprovided money for families

Both natural resources and also human Both natural resources and also human resources were conserved, especially because it resources were conserved, especially because it kept many of these young men from committing kept many of these young men from committing crimes during the depressioncrimes during the depression

Federal Emergency Relief ActFederal Emergency Relief Act

FERAFERA Established the Federal Emergency Relief Established the Federal Emergency Relief

AssociationAssociation

Distributed billions of dollars of direct aid to Distributed billions of dollars of direct aid to unemployed workersunemployed workers

Harry Hopkins was in charge of the agencyHarry Hopkins was in charge of the agency Main goal was to distribute money to states for Main goal was to distribute money to states for

direct assistance to unemployed citizens, direct assistance to unemployed citizens, preferably for wages on work projectspreferably for wages on work projects

Agriculture Adjustment ActAgriculture Adjustment Act

AAAAAA Protected farmers from price drops by Protected farmers from price drops by

providing crop subsidies to reduce providing crop subsidies to reduce production, educational programs to teach production, educational programs to teach methods of preventing soil erosion.methods of preventing soil erosion.

Also gave millions of dollars to help Also gave millions of dollars to help farmers pay their mortgagesfarmers pay their mortgages

Home Owners Loan CorporationHome Owners Loan Corporation

HOLCHOLC Refinance mortgages on non-farm housing. Refinance mortgages on non-farm housing. Assisted about 1 million households.Assisted about 1 million households. This also indirectly assisted mortgage lending This also indirectly assisted mortgage lending

banks.banks. Lastly, helped secure the middle class to the Lastly, helped secure the middle class to the

Democratic Party Democratic Party

Civil Works AdministrationCivil Works Administration

CWACWA Provided public works jobs at $15/week to Provided public works jobs at $15/week to

four million workers in 1934.four million workers in 1934. It was a branch of FERA, also led by Harry It was a branch of FERA, also led by Harry

HopkinsHopkins Most jobs were considered make-work jobs Most jobs were considered make-work jobs

like leaf raking. like leaf raking. Many criticized the agency because they Many criticized the agency because they

stated “ The only thing we have to fear is work stated “ The only thing we have to fear is work itself.”itself.”

Demagogues Demagogues

Father Charles CoughlinFather Charles Coughlin Radio priest, had 40 million Radio priest, had 40 million

listeners. Spoke in favor of listeners. Spoke in favor of Roosevelt and the New Roosevelt and the New Deal but later changed and Deal but later changed and argued against the New argued against the New Deal. His rants became Deal. His rants became very anti-Semitic and very anti-Semitic and fascistic, in support of fascistic, in support of some of the ideas from some of the ideas from Hitler and Mussolini. In Hitler and Mussolini. In 1942, his superiors kicked 1942, his superiors kicked him off the air. He was a him off the air. He was a priest at Royal Oak Shrine. priest at Royal Oak Shrine.

Demagogues Demagogues

Senator Huey LongSenator Huey Long From Louisiana, From Louisiana,

supported his “Share supported his “Share our Wealth” program. our Wealth” program.

Every family was to Every family was to receive 5,000 dollars, receive 5,000 dollars, at the expense of the at the expense of the prosperous. prosperous.

He was shot by an He was shot by an assassin in Louisiana assassin in Louisiana in 1935, out of fear of in 1935, out of fear of Long becoming a Long becoming a fascist dictator. fascist dictator.

DemagoguesDemagogues

Dr. Francis E. TownsendDr. Francis E. Townsend Retired doctor from California, gained the Retired doctor from California, gained the

support of 5 million senior citizenssupport of 5 million senior citizens Called for any citizen over 60 years of age to Called for any citizen over 60 years of age to

get 200 dollars per month that must be spent get 200 dollars per month that must be spent each month. each month.

Scheme was estimated to cost half of the Scheme was estimated to cost half of the national income. national income.

Works Progress AdministrationWorks Progress Administration Authorized in 1935, WPA was launched to help Authorized in 1935, WPA was launched to help

curtail the rise of these proposals from men like curtail the rise of these proposals from men like Coughlin, Townsend, and Long.Coughlin, Townsend, and Long.

Goal was employment on useful projects. Goal was employment on useful projects. Spent 11 million dollars on public buildings, Spent 11 million dollars on public buildings,

bridges, and roads for infrastructurebridges, and roads for infrastructure Over a 8 year period, 9 million people given Over a 8 year period, 9 million people given

jobs. jobs. Some jobs given to artists, musicians, and Some jobs given to artists, musicians, and

writers. writers. Over 1 million pieces of art were created. Over 1 million pieces of art were created.

Advancements for WomenAdvancements for Women Frances PerkinsFrances Perkins

Secretary of Labor, first cabinet memberSecretary of Labor, first cabinet member Mary McLeod BethuneMary McLeod Bethune

Director of Office of Minority Affairs. She was highest ranking Director of Office of Minority Affairs. She was highest ranking African-American in Roosevelt's officeAfrican-American in Roosevelt's office

Ruth BenedictRuth Benedict Made huge strides in field of Anthropology with her book Made huge strides in field of Anthropology with her book

Patterns of CulturePatterns of Culture Margaret MeadMargaret Mead

Student of Benedict. She became curator at American Museum Student of Benedict. She became curator at American Museum of Natural History and made cultural anthropology a more of Natural History and made cultural anthropology a more accepted and popular social science. accepted and popular social science.

Pearl BuckPearl Buck Novelist, won Nobel Prize for Literature in 1938 for Novelist, won Nobel Prize for Literature in 1938 for The Good The Good

EarthEarth

National Recovery AdministrationNational Recovery Administration

Passed in 1933, NRA was designed to assist Passed in 1933, NRA was designed to assist industry, labor, and the unemployedindustry, labor, and the unemployed

Created NRA to enforce codes of fair Created NRA to enforce codes of fair competition, minimum wages, and to permit competition, minimum wages, and to permit collective bargaining of workers. collective bargaining of workers.

Labor can collectively bargain through Labor can collectively bargain through representation of their own choosingrepresentation of their own choosing

Blue eagle adopted as symbolBlue eagle adopted as symbol But in the end the program asked for too much But in the end the program asked for too much

self-sacrifice from labor, industry, and self-sacrifice from labor, industry, and management. management.

Public Works AdministrationPublic Works Administration

Intended for unemployment and industrial Intended for unemployment and industrial recovery. recovery.

Long-range recovery was the primary purpose. Long-range recovery was the primary purpose. 4 billion spent on some 34,000 projects, 4 billion spent on some 34,000 projects,

including buildings, highways, and parks.including buildings, highways, and parks. Built the Grand Coulee Dam on the Columbia Built the Grand Coulee Dam on the Columbia

River. River. Liquor Industry benefitted too because of taxes Liquor Industry benefitted too because of taxes

generated from the sale of liquor. 3.2 percent, generated from the sale of liquor. 3.2 percent, light wine and beer. light wine and beer.

Dust BowlDust Bowl Due to prolonged drought and poor soil Due to prolonged drought and poor soil

conservation techniques, the winds of the Great conservation techniques, the winds of the Great Plains whipped up enormous dust storms.Plains whipped up enormous dust storms.

Many ways caused by human mistakesMany ways caused by human mistakes High Wheat prices drove many to till more landHigh Wheat prices drove many to till more land Tractor and new plow allowed for more land to be tore Tractor and new plow allowed for more land to be tore

upup Dry-farming was continuedDry-farming was continued Consequently, the soil lost its nutrients and couple Consequently, the soil lost its nutrients and couple

that with the drought and it became so loose and dry, that with the drought and it became so loose and dry, the winds were able to whip up huge storms. the winds were able to whip up huge storms.

Dust BowlDust Bowl

Dust BowlDust Bowl

350,000 Okies and Arkies migrated from 350,000 Okies and Arkies migrated from Oklahoma and Arkansas to southern Oklahoma and Arkansas to southern CaliforniaCalifornia

Their story was vividly told by John Their story was vividly told by John Steinbeck in the Steinbeck in the The Grapes of WrathThe Grapes of Wrath

Relief for Dust BowlersRelief for Dust Bowlers Frazier-Lemke Farm Bankruptcy ActFrazier-Lemke Farm Bankruptcy Act Resettlement ActResettlement Act 200 Million trees planted by CCC200 Million trees planted by CCC

Indian New DealIndian New Deal John Collier, head of Department of Indian John Collier, head of Department of Indian

Affairs, wanted to reverse the forced assimilation Affairs, wanted to reverse the forced assimilation policies from the Dawes Act.policies from the Dawes Act.

Indian reorganization Act of 1934Indian reorganization Act of 1934 Encouraged tribes to establish self-governmentEncouraged tribes to establish self-government Preserve native crafts and traditionsPreserve native crafts and traditions Helped stop loss of landsHelped stop loss of lands Revived interest in Native American identity and Revived interest in Native American identity and

cultureculture 200 established tribal governments, by 75 refused, 200 established tribal governments, by 75 refused,

thinking it was a ruse to gain museum artifacts and thinking it was a ruse to gain museum artifacts and museum pieces out of the Native Americansmuseum pieces out of the Native Americans

Federal Securities ActFederal Securities Act

Passed during the 100 days Congress, it Passed during the 100 days Congress, it required stock brokers to give the investor required stock brokers to give the investor sworn information about the soundness sworn information about the soundness and stability of their stocks and bondsand stability of their stocks and bonds

1934, Congress pass the Securities and 1934, Congress pass the Securities and Exchange Commission (SEC)Exchange Commission (SEC) Serves as a watchdog of the stock marketServes as a watchdog of the stock market Made stock markets more of a trading mart Made stock markets more of a trading mart

than a gambling hall, as we saw in the 1920’sthan a gambling hall, as we saw in the 1920’s

Tennessee Valley AuthorityTennessee Valley Authority New Dealers claimed that public utility holding New Dealers claimed that public utility holding

companies price-gauged the public. This companies price-gauged the public. This angered them because they often secured angered them because they often secured important waterways from the public and then important waterways from the public and then turned around and charged unfair prices for turned around and charged unfair prices for desperately needed utilities. desperately needed utilities.

Tennessee River presented New Dealers with a Tennessee River presented New Dealers with a great opportunitygreat opportunity River could easily be used for hydroelectric power, River could easily be used for hydroelectric power,

and serve to give jobs and electricity to an area that and serve to give jobs and electricity to an area that needed bothneeded both

Also, it could serve as a model to later reform the Also, it could serve as a model to later reform the price gauging of the utility companies. price gauging of the utility companies.

Tennessee Valley AuthorityTennessee Valley Authority

TVA passed by 100 days CongressTVA passed by 100 days Congress One main goal was to determine the exact One main goal was to determine the exact

cost of developing and delivering electricitycost of developing and delivering electricity Become a “yardstick” to determine if the utility Become a “yardstick” to determine if the utility

companies were indeed over charging clientscompanies were indeed over charging clients Companies complained about the new Companies complained about the new

competition from the government, stating competition from the government, stating the lower prices were from bad the lower prices were from bad bookkeeping and no taxesbookkeeping and no taxes

Tennessee Valley AuthorityTennessee Valley Authority

Achievements:Achievements: Brought to area employment and electricityBrought to area employment and electricity Low-cost housing, restoration of eroded soil, Low-cost housing, restoration of eroded soil,

reforestation, improved navigation of the river, and reforestation, improved navigation of the river, and flood controlflood control

Brought prosperity to a region that before had littleBrought prosperity to a region that before had little

Eventually, government built dams built on Eventually, government built dams built on Columbia, Missouri, and Colorado rivers. Columbia, Missouri, and Colorado rivers. Bringing electricity and irrigation to the WestBringing electricity and irrigation to the West

Federal Housing ActFederal Housing Act

Federal Housing Act (FHA)Federal Housing Act (FHA) Wanted to speed recovery and make better homesWanted to speed recovery and make better homes Passed in 1934Passed in 1934 Small loans given to householders, for improving their homes or Small loans given to householders, for improving their homes or

building new ones.building new ones. Agency outlasted Roosevelt and the 1930’s.Agency outlasted Roosevelt and the 1930’s.

In 1937, Congress also issued United States Housing In 1937, Congress also issued United States Housing Authority (USHA)Authority (USHA)

Agency designed to lend money to states or communities for Agency designed to lend money to states or communities for low-cost housinglow-cost housing

650,000 low-income people benefitted. 650,000 low-income people benefitted. First time that the slums started to decrease in size or cease First time that the slums started to decrease in size or cease

growinggrowing

Social Security ActSocial Security Act Designed for unemployment insurance and old-Designed for unemployment insurance and old-

age pensionsage pensions Passed in 1935Passed in 1935

Provided federal and state unemployment insuranceProvided federal and state unemployment insurance Specified categories of retired workers were to Specified categories of retired workers were to

receive regular payments from the federal receive regular payments from the federal governmentgovernment

Financed by a payroll tax on both employers and Financed by a payroll tax on both employers and employeesemployees

Provisions also made to help disabled such as the Provisions also made to help disabled such as the blind, handicapped, delinquent children. blind, handicapped, delinquent children.

Social Security ActSocial Security Act Republicans and Conservatives argued Republicans and Conservatives argued

vehemently against the SSA.vehemently against the SSA. New Dealers were inspired by other western New Dealers were inspired by other western

industrial nations, especially in Europe, who industrial nations, especially in Europe, who provided such plans for its citizens.provided such plans for its citizens.

In the new industrialized America, with an In the new industrialized America, with an economy based on boom and bust, the federal economy based on boom and bust, the federal government felt it was necessary to look out for government felt it was necessary to look out for the general welfare of its citizens. the general welfare of its citizens.

In America, you had to work to get the benefit In America, you had to work to get the benefit and by 1939, 45 million people were eligible for and by 1939, 45 million people were eligible for Social Security benefits. Social Security benefits.

Wagner ActWagner Act

Passed in 1935Passed in 1935 Created National Labor Relations BoardCreated National Labor Relations Board Allowed labor and unions the right to self-Allowed labor and unions the right to self-

organization and also to bargain organization and also to bargain collectively with representatives of their collectively with representatives of their own choosing. own choosing.

John L. LewisJohn L. Lewis Organized the Commission for Industrial Organized the Commission for Industrial

Organization out of the AF of L. Organization out of the AF of L.

CIOCIO

John Lewis and CIO were forced to break ranks John Lewis and CIO were forced to break ranks with AF of L because of the unskilled and skilled with AF of L because of the unskilled and skilled worker debateworker debate

However, Lewis continued to fight and grew the However, Lewis continued to fight and grew the union through entering the automotive industry.union through entering the automotive industry.

Started using sit-down strike. Used in Flint, Started using sit-down strike. Used in Flint, forcing GM to recognize CIO as sole bargaining forcing GM to recognize CIO as sole bargaining agency for its employees. agency for its employees.

United States Steel Company also granted rights United States Steel Company also granted rights to unionize to the CIO affiliated employees. to unionize to the CIO affiliated employees.

Fair Labor Standards ActFair Labor Standards Act

Passed in 1938Passed in 1938 Industries involved in interstate commerce Industries involved in interstate commerce

had to :had to : Set up minimum-wage standards and Set up minimum-wage standards and

maximum-hours worked level. maximum-hours worked level. Goals were 40 cents and hour and 40 hours a Goals were 40 cents and hour and 40 hours a

weekweek Labor for children under 16 forbiddenLabor for children under 16 forbidden

By 1940, CIO had 4 million members. By 1940, CIO had 4 million members.

Election of 1936Election of 1936Republican PlatformCriticized the New DealFor its radicalism, Experimentation, Confusing, and waste.

Republicans nominated Alfred Landon, governorOf Kansas.

Roosevelt won in a Landside and both Houses had DemocraticMajorities.

Election highlighted Concept of class warfare.

Supreme Court and RooseveltSupreme Court and Roosevelt 2020thth Amendment Amendment

Ratified in 1933, inauguration shortened to six weeks, Ratified in 1933, inauguration shortened to six weeks, so oath taken in January. Shortened the strange so oath taken in January. Shortened the strange lame duck period. lame duck period.

Roosevelt thought his reelection meant he had a Roosevelt thought his reelection meant he had a mandate, but the Supreme Court stood in his mandate, but the Supreme Court stood in his way. way. In 9 cases brought against new Deal programs, the In 9 cases brought against new Deal programs, the

Supreme Court ruled against Roosevelt 7 of 9 times Supreme Court ruled against Roosevelt 7 of 9 times Court was ultra conservative (remember that Harding Court was ultra conservative (remember that Harding

placed 4 of the 9 on the bench)placed 4 of the 9 on the bench) Roosevelt thought the Supreme Court should get in Roosevelt thought the Supreme Court should get in

line with public opinion and that Democracy meant line with public opinion and that Democracy meant rule by the people. rule by the people.

Court Packing SchemeCourt Packing Scheme

To solve his dilemma, Roosevelt asked To solve his dilemma, Roosevelt asked Congress to permit him to add a new Congress to permit him to add a new justice tot eh Supreme Court for every justice tot eh Supreme Court for every member over seventy who would not member over seventy who would not retire. retire. This would allow for a maximum of 15This would allow for a maximum of 15 Roosevelt was not aware that the court had Roosevelt was not aware that the court had

become somewhat of a sacred cow, and become somewhat of a sacred cow, and Congress nor the public were willing to mess Congress nor the public were willing to mess with it. with it.

Changes in Supreme CourtChanges in Supreme Court Roosevelt was vilified for his actions, but……Roosevelt was vilified for his actions, but…… They kinda worked.They kinda worked.

Justice Owen Roberts, a conservative, started to vote Justice Owen Roberts, a conservative, started to vote as a liberalas a liberal

March 1937, upheld minimum wage for women, March 1937, upheld minimum wage for women, reversing a previous case it ruled onreversing a previous case it ruled on

Court later upheld Wagner Act and Social Security Court later upheld Wagner Act and Social Security ActAct

Congress never passed court packing deal, but Congress never passed court packing deal, but in many ways Roosevelt won the war. in many ways Roosevelt won the war. Through deaths and resignations, FDR made a total Through deaths and resignations, FDR made a total

of 9 appointments to the Supreme Court. of 9 appointments to the Supreme Court.

Twilight of the New DealTwilight of the New Deal

In 1933, unemployment was 25 percent. in 1936, In 1933, unemployment was 25 percent. in 1936, it was 15 percent. it was 15 percent. This was an improvement, but 15 percent is a lot This was an improvement, but 15 percent is a lot

(Most in recent recession was 10 percent in Oct 2009)(Most in recent recession was 10 percent in Oct 2009) 1937, economy took turn for the worst and 1937, economy took turn for the worst and

slipped into a recession, called Roosevelt's slipped into a recession, called Roosevelt's RecessionRecession

Keynes, embraced idea of deficit spending, Keynes, embraced idea of deficit spending, known as Keynesianism. IN 1937, Roosevelt known as Keynesianism. IN 1937, Roosevelt adopts this idea. adopts this idea.

Twilight of New DealTwilight of New Deal

By 1938, most of the New Deal reforms By 1938, most of the New Deal reforms had lost momentum and there is a shift in had lost momentum and there is a shift in the country to more conservatism.the country to more conservatism.

In 1938 Congressional elections, In 1938 Congressional elections, Republicans cut deeply into the Republicans cut deeply into the Democratic majorities. Democratic majorities.

The crisis in international affairs helps The crisis in international affairs helps move the conversation from domestic move the conversation from domestic affairs to international affairs in 1938-1939. affairs to international affairs in 1938-1939.

New DealNew Deal CritiquesCritiques

Foes condemned waste, confusion, contradictions, Foes condemned waste, confusion, contradictions, and graft. and graft.

Many detested the employment of leftist professors Many detested the employment of leftist professors and what they considered Communistsand what they considered Communists

Business people hated the fly by the seat of his pants Business people hated the fly by the seat of his pants policies of Rooseveltpolicies of Roosevelt

People hated the increased bureaucracy and also People hated the increased bureaucracy and also regulation brought on by the New Dealregulation brought on by the New Deal

National Debt rose from 19.5 billion in 1932 to 40.5 National Debt rose from 19.5 billion in 1932 to 40.5 billion in 1939. billion in 1939.

People said it created more class strife and turmoilPeople said it created more class strife and turmoil Private enterprise stifled by a planned economy. Private enterprise stifled by a planned economy. Expansion of executive power under Roosevelt also Expansion of executive power under Roosevelt also

critiqued. critiqued. Worst of all, it failed to curb and cure the depressionWorst of all, it failed to curb and cure the depression