1 / 52

The New Deal

The New Deal. and its prelude. The Great Depression. Rapid rise in crime rate Suicide rates rose Malnutrition rose Prostitution rose Health care not a priority Alcoholism increased Cigars so expensive changed to cigarettes. The Bonus March. 1924-Congress award WWI veterans certificates

maurizio-noonan
Download Presentation

The New Deal

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The New Deal and its prelude

  2. The Great Depression • Rapid rise in crime rate • Suicide rates rose • Malnutrition rose • Prostitution rose • Health care not a priority • Alcoholism increased • Cigars so expensive changed to cigarettes

  3. The Bonus March • 1924-Congress award WWI veterans certificates • $1,000 each • Redeemable in 1945 • By 1932, many veterans bankrupt and want money early

  4. The Bonus March 2 • Protesters leave Oregon • led by Walter Waters • walk to Capitol in DC • Built a shantytown across Potomac in Anacostia • Police try to clear them out using tear gas, bayonets

  5. The Bonus March 3 • President Hoover sent in the cavalry with tanks • Settlements burned • Americans outraged • 90% protesters veterans • 20% were disabled • Hoover sends in Gen. MacArthur to disperse protestors

  6. http://www.english.illinois.edu/maps/depression/depression.htmhttp://www.english.illinois.edu/maps/depression/depression.htm

  7. A “Hooverville” http://static.open.salon.com/files/hooverville1254753331.jpg

  8. Families on Relief to 1933 Source: http://ebooks.bfwpub.com/supp3.php?map&23&4&bookId=henretta6e

  9. Families on Relief to 1933, 2 Although the Great Depression was a nationwide crisis, some regions were hit harder than others. Economic hardship was widespread in the agricultural-based southern and Appalachian states and, to a lesser extent, in the industrial states of the Northeast and Midwest. As the depression worsened in 1931 and 1932, local and state governments, as well as charitable organizations, could not keep up with the demand for relief. After Franklin D. Roosevelt assumed the presidency in 1933, the national government began a massive program of aid through the Federal Emergency Relief Administration (FERA). http://ebooks.bfwpub.com/supp3.php?map&23&4&bookId=henretta6e

  10. 1932 Election • Hoover runs again as Republican • Franklin D. Roosevelt ran on Democratic ticket • Governor of New York • “A new deal for the American people” • 57.4% for Roosevelt

  11. Happy days are here again http://www.archives.gov/research/recover/images/fdr-portrait-s.jpg

  12. Roosevelt’s 1st Term • Signed legislation fixing banks and stock market • Approved plans to aid the unemployed • Began housing initiatives • Public-owned electric power • Aided industrialists & labor

  13. A Bank Holiday • Banks not the safest place to put your money • Many preferred under the mattress or in a jar buried in the back yard • Deposits invested in risky ways

  14. A Bank Holiday 2 • As banks failed, more and more people tried to get their money out. • 2 days after his inauguration, FDR declared a bank holiday • bank transaction suspended across the US

  15. 4 Categories of Banks • Solvent: fit to reopen; slightly over 50% of banks • Could operate with limits on the amount of deposits being withdrawn • On the brink of collapse--could only accept deposits • Unfit to continue business-5%

  16. A Fireside Chat • FDR radio address night before banks reopened • Asked America to put their faith in the banking system • 1st day open: deposits greater than withdrawals • Bank crisis over quickly

  17. Great Source • Why Did FDR’s Bank Holiday Succeed?by William L. Silber • http://www.newyorkfed.org/research/epr/09v15n1/0907silb.pdf

  18. Roosevelt’s “100 Days” • Roosevelt called Special Session of Congress on March 9 to handle economy (3/9 – 6/16) • Emergency Banking Act (March 9), to increase help for and regulation of the nation's banks; • Economy Act (March 20), to cut federal costs through reorganization of and cuts in salaries and veterans' pensions; • Beer-Wine Revenue Act* (March 22), to legalize and tax wine and beer;

  19. Roosevelt’s “100 Days” 2 • Civilian Conservation Corps Act (March 31), to create work camps for 250,000 men ages 18 to 25; • Federal Emergency Relief Act (May 12), to establish a federal agency to distribute $500 million to states and localities for relief; • Agricultural Adjustment Act (May 12), to establish a federal agency to decrease crop surpluses by subsidizing farmers to cut back production; • Thomas Amendment to the Agricultural Adjustment Act, to permit the president to inflate the currency in various ways; • Tennessee Valley Authority Act (May 18), to allow the federal government to build dams and power plants in the Tennessee Valley, to generate and sell the power, and to engage in area development;

  20. Roosevelt’s “100 Days” 3 • Federal Securities Act (May 27), to stiffen regulation of the securities business; • Joint resolution to abandon the gold standard (June 5); • National Employment System Act (June 6), to create the U.S. Employment Service; • Home Owners Refinancing Act (June 13), to establish the Home Owners Loan Corporation to refinance non-farm home mortgages; • Glass-Steagall Banking Act (June 16), to institute various banking reforms, including establishing the Federal Bank Deposit Insurance Corporation;

  21. Roosevelt’s “100 Days” 4 • Farm Credit Act (June 16), to provide for the refinancing of farm mortgages; • Emergency Railroad Transportation Act (June 16), to increase federal regulation of railroads; and the • National Industrial Recovery Act (June 16), to establish the National Recovery Administration and the Public Works Administration Source: http://www.u-s-history.com/pages/h1589.html

  22. The First New Deal • 1933-1935 • Relief for immediate problems (especially unemployment) • “Alphabet Agencies” • The Supreme Court rules that Congress acted UNCONSTITUIONALLY by allowing the President to assume legislative authority in establishing many of the Alphabet Agencies.

  23. The Second New Deal • 1934-1935 • Resettlement Administration: loans to small farmers facing foreclosure and funds to help migrant farmers • Works Progress Administration • Helping organized labor • Wagner Act • National Labor Relations Board

  24. RFC • Reconstruction Finance Corporation or RFC • President Hoover 1932 • 1/2 billion $$ in loans to • banks • corporations • state governments

  25. RFC 2 • Financed public works projects like Golden Gate Bridge and Los Angeles Aqueduct • Did not include federal aid to individuals • Hoover and his advisors did not think was necessary

  26. http://www.loc.gov/pictures/item/90716540/?sid=99fa30e1a3b5c260d358df6ccfdbe934http://www.loc.gov/pictures/item/90716540/?sid=99fa30e1a3b5c260d358df6ccfdbe934

  27. FDIC • Federal Deposit Insurance Corporation • Deposits in banks guaranteed by government up to $2500 • restricted banks from recklessly speculating depositor’s money in stock market • 1934: only 61 banks failed

  28. Going Back to Work • “Priming the Pump” • Government jump-start a dry economy with federal money • Federal Emergency Relief Act • $3 billion to state/local govt for direct relief payments

  29. CCC • Civilian Conservation Corps • Work-relief program • unemployed, unmarried men 17-25 years old • lived in camps with military-style discipline • built road, bridges, parks, reservoirs, fire roads

  30. http://www-tc.pbs.org/nationalparks/media/photos/04000/S4991-lg.jpghttp://www-tc.pbs.org/nationalparks/media/photos/04000/S4991-lg.jpg

  31. CCC 2 • Earned $30/month • money sent directly home • extremely popular

  32. Civil Works Admin. • Employed almost 4 million • earned $15/week • tutored the illiterate • built parks • repaired schools • built athletic fields/pools • ~3,000 artists and writers

  33. Works Progress Adm. • Largest work-relief program • employed ~9 million • most built public works projects like bridges & roads • Federal Theater Project • Authors to write regional histories (Steinbeck & Wright) • “We Poke Along”

  34. William Schwartz, mural in Pittsfield, IL post office: "River Boat and Bridge" 1938 http://hubpages.com/hub/Art_and_WPA_A_Vanishing_Heritage

  35. Farming • Agricultural Adjustment Administration • to bring farm prices back to pre-WWI levels • 7 basic farm products: wheat, cotton, corn, tobacco, rice, hogs, milk • paid to farm less

  36. Farming 2 • Relief did not reach tenant farmers and sharecroppers • Owners bought better machinery thus reduced need for farm labor • 1936: Supreme Court declared AAA unconstitutional

  37. Farming 3 • Soil Conservation and Domestic Allotment Act • paid to grow clover and alfalfa not wheat and corn • replenish soil with nutrients

  38. Farm Credit Act • March 1933 • Refinanced many farm mortgages • Could buy back a lost farm at 1% interest over 6 years

  39. Rural Electrification • Rural Electrification Authority • To get electricity to nation’s farms • Private utility companies got active due to government competition • by 1950: nine out of 10 farms had electricity

  40. Social Security • Pensions provided by employer or employee saved money each paycheck • But most lived from check to check unable to save money • 1935: US Govt gets involved • “Contract between generations”

  41. Social Security 2 • Current workers pay in • Retirees take out beginning at age 65 • Amounts received based on years contributions made • “revolutionary” for its time in the US

  42. http://www.ssa.gov/history/marchs.html

  43. Interesting Fact • Frances Perkins • Secretary of Labor • First woman to hold a cabinet-level position

  44. FDR signing the Social Security Act with Frances Perkins in the background http://queencityma.files.wordpress.com/2009/11/roosevelt.jpg

  45. Government Grows • Federal government accepted responsibility for solving social problems • Government agencies grow to meet the need • Supported by “progressive” politicians

  46. Business • National Recovery Admin • hoped to do for industry what AAA did for farming • outlawed child labor • set maximum hours and minimum wage • guarantee to collective bargaining • found unconstitutional

  47. TVA • Tennessee Valley Authority • to solve geographic problems of Tennessee valley • hydroelectric power • flood control

  48. TVA http://www.archives.gov/southeast/exhibit/popups.php?p=5.1.13

  49. Critics • Liberals & radicals: not doing enough • Conservatives: socialism in disguise • Huey “the Kingfish” Long • governor of Louisiana • “Share the wealth”;“Every man a king” • Assassinated

  50. http://faculty.uml.edu/sgallagher/sgallagher/i-60a.jpg

More Related