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GREAT DEPRESSION

GREAT DEPRESSION. How did ordinary Americans endure the hardships of the Great Depression?. Economic Distress. Unemployment From 3% unemployment in 1929 to 25% in 1933 1 in every 7 businesses failed (heavy industries) Cascading unemployment

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GREAT DEPRESSION

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  1. GREAT DEPRESSION How did ordinary Americans endure the hardships of the Great Depression?

  2. Economic Distress • Unemployment • From 3% unemployment in 1929 to 25% in 1933 • 1 in every 7 businesses failed (heavy industries) • Cascading unemployment • People out of work=no spending=businesses closing=more people out of work • Farmers • Overproduction and underconsumption of farming goods • Falling property values and increased foreclosures • 1920, 38 of 1000 farms foreclosed in 1932 278 per 1000 farms closed • Mississippi tenant farmers income fell annually from $239 in 1929 to $119 in 1933 • American families stressed • Loss of self respect • Marriage and birth rates declined

  3. Struggling Society • Loss of Homes • Evictions increased, which led to homelessness • Hooverville’s sprang up in major cities • Men left home and wandered the streets (hobos) and teenage boys wandered the rail lines (Hoover tourists) • Increased hunger and starvation • 1 in 5 children suffered from Malnutrition, inadequate diet. • Illness increased in poor families 66%, and medical care could not be afforded • Soup kitchens and Breadlines became a common site in many cities. • New York had 82 soup kitchens providing the needy with 85,000 meals a day

  4. Droughts and Floods • The Dust Bowl occurred from drought and blowing dust storms called, Black Blizzards. • Black Blizzards affected the Great Plains in 1931. • 100 million acres of farmlands affected • Desertification, process in which land becomes increasing dry and desert like • Drought in addition to poor farming practices after WWI (over production), depleted the soil of nutrients and when the wind picked up, it blew the plants away • 1935, government established the Soil Conservation Service to help farmers by promote better farming practices and planting trees • Depopulation • 25% living in the Dust Bowl region left for nearby cities looking for work • Okies, from the fictional book “The Grapes of Wrath,” were farmers who packed up and headed for California on Rt 66 for its promise of farm work • The Great Flood of 1936 • Northeast Flood, hit Pennsylvania the hardest. • 84 died and 82,000 buildings destroyed • Shortly after President Roosevelt signed a flood-control legislation into action.

  5. Coping with Hard Times • 80,000 college students dropped out • Bartering took place to survive • Before FDR’s New Deal people looked to any source for help. • In New York charitable contributions from the wealthy increased from 4.5 million in 1930 to 21 million in 1932 • Gangster Al Capone established Chicago’s first Soup Kitchen in 1930 • Local and state governments offered public assistance, money, goods, and services, to those out of work. But their funds were drained quickly

  6. The NEW DEAL How did the expansion of Government during the New Deal affect the Nation?

  7. The First New Deal • FDR takes office 1933 and implements his program of relief, recovery and reform, THE NEW DEAL • FDR attempted to calm people’s fears by giving a series of radio addresses called “fireside chats.” • Explanation of his plans and asking for support • Smooth calming voice and upbeat tone • People soon trusted FDR and backed the New Deal

  8. Restructuring the Financial Sector • March 6th, 1933- all banks were temporary closed known as a “bank holiday” • Emergency Banking Act passed-federal government has more power to supervise banks • Sunday, March 12th 1933, one day before the banks were to reopen, FDR’s stated in his fireside chat “I can assure you, it is safer to keep your money in a reopened bank, rather than under the mattress.” March 13th, money started to flow into banks • Banking Act of 1933- created the Federal Deposit Insurance Corporation (FDIC) which insured deposits up to $5,000. • Securities and Exchange Commission (SEC) created in 1934- companies required to publish important facts about their businesses and regulated the stock market

  9. New Deal: helping Business and the Economy • NIRA- National Industrial Recovery Act of 1933-increase production, boost wages and prices. Aimed to help business, labor unions and the unemployed. • NIRA created the NRA- National Recovery Act. The NRA helped business by creating codes of fair pricing, standard goods, and fair competition (moving away from laissez fair) • NIRA granted workers the right to organize and bargain collectively- establishing minimum wage and maximum hours • NIRA created the PWA- Public Works Administration to oversee public works projects. 3.3 billion dollars was spent to create jobs and stimulate the economy, but it worked very slowly.

  10. NEW DEAL: helping Farmers • AAA- Agricultural Adjustment Act- tried to aid farmers by reducing crop production and increasing crop prices. • Goal- to reach parity- give farmers purchasing power they had previous to WWI • Farmers planted fewer crops in hopes prices would increase • AAA also gave farmers loans to pay mortgages and stay on their land

  11. Economic Development • TVA- Tennessee Valley Authority- built dams, bridges, roads, planted trees, cut trails to National Forests • Home Owners Loan Corporation- helped people make mortgage payments • FHA- Federal Housing Administration- gave boost to banking and construction industries by insuring mortgages up to 80% of a homes value

  12. Economic Development • CCC- Civilian Conservation Corp- provided young men, jobs, working on conservation projects like planting trees and creating national parks. • FERA- Federal Emergency Relief Administration- sent funds to state governments, which then distributed funds to the needy. (1st time in history the federal government provided direct relief to the needy)

  13. Political Challenges • Critics of the New Deal- ideological differences • Right Wing- conservative- thought FDR had gone too far • Wealthy industrialists, bankers, and religious leaders • American Liberty League- called the New deal socialists and unconstitutional • Left Wing-liberal-thought FDR had not done enough for the needy • Dr. Francis Townsend, Norman Thomas, and Upton Sinclair thought the New Deal should do more

  14. Political Challenges • Demagogues-political leader to appeals to people’s emotions and prejudices- attacked the New Deal and were Extremes on the political spectrum. • Charles Coughlin- Roman Catholic Priest- used the radio to capture his audience and felt FDR did not do enough stating FDR had “out HooveredHooverville” • Huey Long- Louisiana Senator, launched a Share our Wealth Program, take money from the rich and give it to the poor. “4 % of American People own 85% of the wealth of America” • http://www.youtube.com/watch?v=_7IdgoXzi24 • FDR claimed to be moderate- mainstream- in the middle

  15. The Second New Deal • Emergency Relief Appropriation Bill- nicknamed “Big Bill” created new agencies in 1935 • REA- Rural Electrification Administration -establishing electricity to farms (20% in 1935 by WWII 90% had electricity) • WPA- Works Progress Administration- put more than 3 million Americans to work building bridges public buildings and parks • WPA- arts projects- murals on public buildings

  16. Supreme Court Attacks the New Deal • In 1935, the Supreme Court struck down the NIRA- stating the act violated the constitutional separation of powers given by the president, rather than congress the power to issue “codes of fair competition” • In 1936, the Supreme Court struck down the AAA on grounds that “to regulate and control agricultural production, was a matter beyond the powers delegated to the federal government”

  17. Bills for workers • Wagner Act- guaranteed workers “the right to self-organization, to form, join, or assist labor organizations and to collectively bargain” • The National Labor Relations Board (NLRB) was created to supervise union elections and to penalize employers for “unfair labor practices” • 1938- Fair Labor Standards Act regulated conditions in the workplace and set a minimum wage of $.25 an hour and maximum 44 hour work week

  18. SOCIAL SECURITY • Social Security Act- 1935, retirement benefits to retired workers after they reach 62 and disability- workers who become too disabled and children who are severely disabled. • Social Security Act also set up an unemployment insurance program for workers who have lost their jobs and are seeking work (usually up to 6 months)

  19. Supreme Court Battle • 1936 FDR easily wins a second term in office • FDR feared the Supreme Court would hold him back • 1937- FDR presented Congress with legislation to redesign the Supreme Court • Add a new justice for every justice over 70 (too old to keep up) • His real intention was to pack the supreme court with liberal justices who favored New Deal programs • Republicans and Democrats were OUTRAGED with FDR’s Court-Packing Plan and his legislation was shot down.

  20. New Deal: Social and Political Impacts • Workers- New Deal helped many workers and labor unions. • John L Lewis, head of United Mine Workers helped form CIO- Congress of Industrial Organization • Women-New Deal helped and hurt women • Many more women in political positions (Frances Perkins- Secretary of Labor, Mary McLeod Bethune- Minority Affairs), but many women left the workforce to free up jobs for men. • African Americans- continued to suffer from oppression • FDR failed to support African American by turning down an anti-lynching bill (to keep Southern votes in congress)

  21. New Deal: Social and Political Impacts • American Indians-better Deal for American Indians • John Collier, head of Indian Affairs- hoped to repair past damage with an “Indian New Deal” • Indian Reorganization Act of 1934- Indian communities were given the right to set up their own tribal communities • Mexican Americans- tough Deal for Mexican Americans • Mexican Farmers hurt badly • 1/3 of Mexicans returned to Mexico • New Deal Coalition- loyalty of minorities to the democratic party • Benefits of the New Deal outweighed the costs • 70% of African Americans voted for FDR • Minorities trusted FDR for progress

  22. Legacy of the NEW DEAL • Right to Economic Security • Social Security • Health Insurance for elderly • Price supports for farmers • Food stamps for the poor • Expansion of the Federal Government • Deficit Spending, spending more than the government receives in revenues • Government plays a more direct role in Americans lives • FDIC and the SEC protect consumers

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