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1. The Great Depression and New Deal, 1929–1940 The Great Depression has a major impact on American society. President Franklin Roosevelt ends the economic downturn and changes the role of U.S. government. "Joad Family Applying for Relief" (named for family in Steinbeck’s The Grapes of Wrath)—migrant farmers seek government aid. Photo (1938), Horace Bristol. NEXT

2. The Great Depression and New Deal, 1929–1940 SECTION 1 Hoover and the Crash SECTION 2 Roosevelt and the New Deal SECTION 3 Life During the Depression SECTION 4 The Effects of the New Deal NEXT

3. Section 1 Hoover and the Crash After the stock market crash of 1929, the U.S. economy sinks into the worst depression in its history. NEXT

4. SECTION 1 Hoover and the Crash Problems in the Economy • Herbert Hoover elected president (1928) • Despite overall prosperity, some industries are in trouble • 71 percent of U.S. families earn below amount needed for decent living Chart • Industries produce more goods, people cannot afford to buy enough • Unsold goods pile up in warehouses • Many investors buy on speculation—buy, sell stocks, make quick profit Continued . . . NEXT

5. SECTION 1 continued Problems in the Economy • Investors begin buying on margin: - pay small part of stock’s price as down payment, borrow the rest - sell stock, repay loan, keep profit • Works if prices rise, if prices fall unable to repay loans NEXT

6. SECTION 1 The Crash and the Great Depression • Stock prices drop sharply, people try selling thousands of shares • Heavy selling drives prices down more, scares off buyers • On October 29, 1929, Black Tuesday, investors: - sell 16.4 million shares at prices lower than previous month • Stock market prices plunge—Crash of 1929 Image Continued . . . NEXT

7. SECTION 1 continued The Crash and the Great Depression • Many people unable to pay bank loans, banks run short of cash • People demand their money from banks, many banks run short, close • People buy less goods, cause thousands of businesses to go bankrupt • Businesses fire workers, unemployment grows to 25% by 1933 Chart • Great Depression—severe economic depression, 1929 to WW II, global Chart NEXT

8. SECTION 1 Hoover Acts Conservatively • President Hoover cuts government spending, raises taxes which: - pulls money out of economy, makes depression worse • Refuses to support government relief—aide to the poor • Asks for increase in charitable work, not enough to help everyone • Supports public works projects: - government-funded projects to build public resources, creates jobs NEXT

9. SECTION 1 Hoover Loses to Roosevelt • Congress promises World War I veterans bonuses due in the 1940s • Thousands of WW I vets form the Bonus Army: - sets up camp around Washington D.C. - asks Congress to pass law granting early payment of bonuses Image Continued . . . NEXT

10. SECTION 1 continued Hoover Loses to Roosevelt • President Hoover, Senate votes down bill for bonus payment • U.S. troops use tear gas, remove remaining vets, families, kill 1 vet • Attack turns Americans angrily against Hoover • Franklin Delano Roosevelt wins presidential election (1932) NEXT

11. Section 2 Roosevelt and the New Deal After becoming president, Franklin D. Roosevelt takes many actions to fight the Great Depression. NEXT

12. SECTION 2 Roosevelt and the New Deal Roosevelt Takes Charge • Democrat Franklin Delano Roosevelt(FDR) inaugurated on March 4, 1933 • Gives Americans hope, willing to try new ideas, change government • Takes 3 steps to build public confidence: - declares “bank holiday”—temporary shutdown of banks - promises that only banks in good shape will reopen - fireside chats—radio talks, FDR explains policies in friendly way NEXT

13. SECTION 2 The Hundred Days • FDR pledges New Deal—programs to fight Depression • Congress passes bills sent by FDR in Hundred Dayssession • Laws passed have 3 goals: - relief for the hungry - recovery for agriculture and industry - reforms to change the way the economy works NEXT

14. SECTION 2 Responses to the New Deal • Some conservatives oppose New Deal, growth of U.S. government • Question payment of new programs, fear U.S. moving toward socialism • Senator Huey Long wants redistribution of wealth in U.S. to gain power • On radio, priest blames Jews for bad economy: - Catholic church stops priest’s broadcasts • Another critic proposes pension, Americans over 60, figures disputed • Voters support New Deal, elect more Democrats to Congress (1934) NEXT

15. SECTION 2 The Second New Deal • Congress passes Social Security Act(1935): - workers, employers make payments into a special fund - they draw a pension from fund after they retire - also helps laid-off, disabled workers, needy families, dependents • Social Security is part of programs passed in 1935—Second New Deal • Working class, African Americans support FDR, wins reelection (1936) NEXT

16. SECTION 2 Roosevelt Fights the Supreme Court • Most of 9 justices of Supreme Court do not support FDR’s programs • Strike down laws they believe gives federal government too much power • FDR wants bill allowing him to add 6 justices, gain New Deal support • Democrats, Republicans criticize Court-packing bill, bill voted down • Retirements, deaths allow FDR to name 5 liberal justices NEXT

17. SECTION 2 The New Deal Slows Down • Opposition to FDR grows after Court-packing attempt • Economy gets worse in 1937, many blame FDR • Critics attack FDR’s deficit spending which involves: - using borrowed money to fund government programs • FDR himself doubts deficit spending policy NEXT

18. Section 3 Life During the Depression During the Depression, most Americans know great hardship. NEXT

19. SECTION 3 Life During the Depression The Dust Bowl Destroys Lives • In early 1930s, drought hits Great Plains, winds cause dust storms • Dust damages farms across 150,000 square-mile region—Dust Bowl • Ruined farmers, families migrate to find work, many go to California • Newcomers overcrowd California, many from Oklahoma, called “Okies” NEXT

20. SECTION 3 Living Through Hard Times • In 1936, 9 million people in U.S. are unemployed • Bread lines offer food to hungry, many people lose homes Image • Homeless often live in makeshift shelters, under bridges • Boys often leave school to work, girls stay home to look after kids • Many teenagers run away from home, avoid burdening their family • Women often give up jobs to men, work at low-paying jobs, servants NEXT

21. SECTION 3 Artists Portray the Struggle • Writers James Agee, Walker Evans depict harsh lives of tenant farmers • John Steinbeck’s novel The Grapes of Wrath (1939) depicts migrant Okies • Black writer Richard Wright shows racism in novel Native Son (1940) • Photographers, including Dorothea Lange, capture Depression suffering Image NEXT

22. SECTION 3 Women in the New Deal • First lady Eleanor Roosevelthelps poor Americans • Visits coal mines, work camps, hospitals, reports to FDR Image • Holds press conferences with women reporters: - introduces women who run New Deal programs • Frances Perkins named secretary of labor, 1st female cabinet officer • Supports minimum wage, limit on child employment, unemployment laws NEXT

23. SECTION 3 Minorities and the Depression • FDR has several African Americans in government positions • FDR fails to back civil rights laws, afraid of Southern opposition • Mexican Americans find few jobs, many do not benefit from New Deal • In 1930s, immigration from Mexico declines, many Mexicans leave U.S. • Some Mexican-American U.S. citizens forced to leave U.S. • Native Americans receive arts support, some reservation land restored NEXT

24. SECTION 3 Unions Gain Strength • Labor union Congress of Industrial Organizations (CIO)open to: - women - minorities - unskilled workers • Labor movement uses sit-down strike: - instead of walking off jobs, workers remain idle inside plant - prevents factory owners from using strikebreakers • Wagner Act (1935) gives unions more negotiation power • Union membership increases 2.7 million (1933) to 7 million (1937) Chart NEXT

25. Section 4 The Effects of the New Deal The Depression and the New Deal have many long-term effects on U.S. government and society. NEXT

26. SECTION 4 The Effects of the New Deal Lasting Effects of the Depression • Depression causes many to fear losing money, property again • Makes many feel money is very important, some feel system is lousy • New Deal does not end Depression • U.S. involvement in World War II makes economy grow again • New Deal forever changes the U.S. government Chart NEXT

27. SECTION 4 A Larger Role for Government • FDR increases the president’s power • Does not abuse power, helps restore Americans’ faith in democracy • Expands role of federal government • Government runs programs for people’s welfare • FDR uses deficit spending to fund New Deal, pay for the war NEXT

28. SECTION 4 New Deal Programs Today • New Deal programs help Americans today in the following ways: - a national pension system - oversight of labor practices - agricultural price supports - protection for savings - regulation of stock market by Securities and Exchange Commission Image NEXT

29. SECTION 4 An Ongoing Political Debate • Democrats, Republicans still argue about: - federal, local government roles in various programs • Democrats more likely liberal, Republicans more likely conservative • liberal—favors government action to bring about reform • conservative—fewer government controls, individual economic freedom • Social Security in trouble but still exists today NEXT

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