The Great Depression and The New Deal

1. The Great Depression and The New Deal • The Economy- trouble in paradise • The Crash of 1929 • Causes of the Depression • The Hoover Years • FDR and the New Deal • The First 100 Days

2. 1920s Prosperity • Telephone in use doubled

3. 1920s Prosperity • Telephone in use doubled • Plastics, rayon, and cellophane available

4. 1920s Prosperity • Telephone in use doubled • Plastics, rayon, and cellophane available • New Products: cigarette lighters, reinforced concrete, dry ice…and pyrex

5. 1920s Prosperity • Telephone in use doubled • Plastics, rayon, and cellophane available • New Products: cigarette lighters, reinforced concrete, dry ice…and pyrex • More leisure time and paid vacations

6. Inequality of the Wealth in the 1920s • Real wages increased 21%

7. Inequality of the Wealth in the 1920s • Real wages increased 21% • But corporate dividends went up 66%

8. Inequality of the Wealth in the 1920s • Real wages increased 21% • But corporate dividends went up 66% • Richest 5% of population increased its share of the wealth from 1/4 to 1/3

9. Inequality of the Wealth in the 1920s • Real wages increased 21% • But corporate dividends went up 66% • Richest 5% of population increased its share of the wealth from 1/4 to 1/3 • And the richest 1% controlled 20% of all income in the nation

10. Inequality of the Wealth in the 1920s • Real wages increased 21% • But corporate dividends went up 66% • Richest 5% of population increased its share of the wealth from 1/4 to 1/3 • And the richest 1% controlled 20% of all income in the nation • 16 million lived below poverty level of $2000

11. The Stock Market Crash

12. The Stock Market Crash • 1924- 100 • 1925- 181 • 1927- 245 • 1928- 331 • September 1929- peaked at 452 then started to fall • October 1929- ended up at 224

13. Herbert Hoover

14. Some Causes of the Great Depression

15. Some Causes of the Great Depression • Overproduction and underconsumption

16. Some Causes of the Great Depression • Overproduction and underconsumption • Inequality of wealth

17. Some Causes of the Great Depression • Overproduction and underconsumption • Inequality of wealth • Overextension of credit

18. Some Causes of the Great Depression • Overproduction and underconsumption • Inequality of wealth • Overextension of credit • The Smoot-Hawley Tariff

19. Some Causes of the Great Depression • Overproduction and underconsumption • Inequality of wealth • Overextension of credit • The Smoot-Hawley Tariff • A series of natural disasters- The Dust Bowl

20. Hoover’s approach to the Depression • Top down- give money to businesses and banks, to create jobs (trickle-down economics)

21. Roosevelt and the New Deal • The 100 Days • The National Recovery Act (NRA) • The Tennessee Valley Authority (TVA) • The Safety Net • Nine Old Men- The court-packing scheme • Keynes and Deficit Spending • The New Deal Reassessed

22. Franklin Delano Roosevelt

23. Depression Scenes

24. Food Lines

25. Hooverville

26. Migrant mother and family

27. The Three “R”s of the New Deal

28. The Three “R”s of the New Deal • Relief of Human suffering

29. The Three “R”s of the New Deal • Relief of Human suffering • Recovery of the Economy

30. The Three “R”s of the New Deal • Relief of Human suffering • Recovery of the Economy • Reform (to prevent it from happening again)

31. The New DealThe 100 days

32. The New DealThe 100 days • A Bank “Holiday” • Emergency Relief Banking Act- Created the FDIC

33. The New DealThe 100 days • A Bank “Holiday” • Emergency Relief Banking Act- Created the FDIC • Civilian Conservation Corps

34. The New DealThe 100 days • A Bank “Holiday” • Emergency Relief Banking Act- Created the FDIC • Civilian Conservation Corps • Federal Emergency Relief Act (FERA)

35. The New DealThe 100 days • A Bank “Holiday” • Emergency Relief Banking Act- Created the FDIC • Civilian Conservation Corps • Federal Emergency Relief Act (FERA) • Agricultural Adjustment Act (AAA)

36. The New DealThe 100 days • A Bank “Holiday” • Emergency Relief Banking Act- Created the FDIC • Civilian Conservation Corps • Federal Emergency Relief Act (FERA) • Agricultural Adjustment Act (AAA) • Home-owners Loan Corp. (HOLC)

37. The New DealThe 100 days • A Bank “Holiday” • Emergency Relief Banking Act- Created the FDIC • Civilian Conservation Corps • Federal Emergency Relief Act (FERA) • Agricultural Adjustment Act (AAA) • Home-owners Loan Corp. (HOLC) • Civil Works Agency (CWA)

38. National Recovery Act

39. National Recovery Act • Price fixing and codes of fair competition

40. National Recovery Act • Price fixing and codes of fair competition • Minimum wages and maximum hours

41. National Recovery Act • Price fixing and codes of fair competition • Minimum wages and maximum hours • Section 7a- Gave organized labor right to organize and bargain collectively

42. National Recovery Act • Price fixing and codes of fair competition • Minimum wages and maximum hours • Section 7a- Gave organized labor right to organize and bargain collectively • The Public Works Administration (PWA) spent $4 billion on 34,000 projects

43. The Tennessee Valley Authority

44. The Tennessee Valley Authority • Conservation

45. The Tennessee Valley Authority • Conservation • Govt. entered power-producing business

46. The Tennessee Valley Authority • Conservation • Govt. entered power-producing business • Served as a yardstick to see if private utilities were charging too much

47. The Tennessee Valley Authority • Conservation • Govt. entered power-producing business • Served as a yardstick to see if private utilities were charging too much • Produced Cheap Electricity

48. The Tennessee Valley Authority • Conservation • Govt. entered power-producing business • Served as a yardstick to see if private utilities were charging too much • Produced Cheap Electricity • Provided full employment for poor area

49. The Social Security Act of 1935

50. The Social Security Act of 1935 • Unemployment Insurance