1. The Great Depression and the “New Deal”
How the greatest economic crisis in American history shaped American politics, culture and society

2. I. The Stock Market Crash
Republican responsibility for the economy
Stock market outraces real economic growth
The problem of buying stock “on margin”
Public concern over the stock market by 1929
The crash
“Deflationary Psychology”

3. II. The Great Depression
Initial governmental optimism
Catastrophic unemployment figures
Urban poverty, especially for immigrants, is the worst
State and local governments as well as private charities can do little

4. II. The Great Depression
Corporate failures
Drop in farm income
Even the wealthy had problems
--Howard Johnson restaurant chain
“Riding the rails” looking for work

5. III. Contributing Causes to this Economic Catastrophe
American farmer in trouble
Unstable American foreign trade
The Gold standard forsaken in Europe
Weak and vulnerable American banks
Large individual debt
Corporate profits enriched only a few

6. IV. The Response of the Hoover Administration
Positive statements aggravate the Depression crisis
Hoover’s background
Hoover’s actions to stem the economic crisis
Creation of the Reconstruction Finance Corporation (1932)
“Trickle Down” Solutions

7. IV. Hoover’s Response (cont.)
Unemployment continued and farm prices dropped dramatically
Violent farm protests by 1932
Hoover was limited by his own governmental philosophy
Hoover championed “voluntarism” as a solution

8. IV. Hoover’s Response (cont.)
Growing inability to compromise with Congress
Hoover’s unpopularity grows
His name becomes synonymous with the Depression
Economic and Political blunders
The Bonus March (Summer of 1932)

9. V. The Election of 1932 Democrats nominated Franklin Roosevelt
FDR’s background
Republicans nominated Hoover
Roosevelt’s campaign
FDR projects the image that he will take action as President
Results of the Election

10. VI. “The New Deal”: A “Revolution”?
Origins of the phrase
Contrast with progressivism
Major success = restoration of confidence
FDR’s “Brain Trust”
Military analogy
Reliance on Social Workers
--Frances Perkins and Harry Hopkins

11. VI. The “New Deal”: A “Revolution”? (cont.)
Bi-partisan support for FDR publicly and in Congress
How revolutionary was the “New Deal”?
“New Deal” may have prevented a revolution
Really not a revolution in the truest sense

12. VII. Changes Made
Federal government directly provided services to the American people
-- “welfare state”
Vast centralization of national power
Increase in power of the presidency
Democratic party becomes majority party
Blacks vote for Democrats

13. VIII. Franklin Delano Roosevelt: The Man
Strong president who enjoyed leading
Great politician
Used the radio effectively
-- “fireside chats”
Not a systematic thinker
Great ability to project empathy
Many Americans think of FDR as part of the family
More loved and hated than any other president

14. IX. First Lady Eleanor Roosevelt
Creates model for the active first lady
Activist, especially for Blacks and women
Real concern for the poor
FDR’s “eyes and legs”
Reputation for being constantly on the go

15. X. The “New Deal” and American Banking
Emergency Banking Act (March 6, 1933)
Use of the “fireside chat” to explain the bank holiday to the American public
Initial success
Federal Deposit Insurance Corporation (1933)
US abandoned the gold standard

16. XI. The “New Deal” and the Problem of Individual Economic Relief
Justification for the “alphabet soup” agencies of the “New Deal”
Federal Emergency Relief Administration (FERA—spring, 1933)
--directed by Harry Hopkins
Civil Works Administration ( )

17. XI. Problem of Individual Economic Relief (cont.)
Civilian Conservation Corps (CCC—spring, 1933)
Public Works Administration (PWA—June, 1933)
--Directed by Harold Ickes
Works Progress Administration (WPA—1935)

18. XI. Problem of Individual Economic Relief (cont.)
WPA directed by Harry Hopkins
Federal Writers and Artists projects
National Youth Administration (NYA)
National Recovery Administration (NRA—1933)

19. XII. The “New Deal” and the American Farmer
Agricultural Adjustment Act (AAA—spring, 1933)
Commodity Credit Corporation (1933)
“Dust Bowl” migrations
-- “Okies”
Tennessee Valley Authority (TVA—spring, 1933)
Farm Security Administration (FSA—1937)

20. XIII. The “New Deal” and Organized Labor
FDR’s sympathy with union concerns grows
Growth in union membership
Wagner Act (1935)
--Creation of NLRB
Congress of Industrial Organizations (CIO) created in 1935

21. XIII. The “New Deal” and Organized Labor (cont.)
The Leadership of John L. Lewis and others
Use of the “sit down strike”
Fair Labor Standards Act (1938)
--minimum wage: 40 cents
--prohibition of child labor
--maximum work week of 40 hours

22. XIV. The Social Security Act (1935)
Myth of poor being lazy exposed
13 weeks of unemployment insurance
Pension fund for retired people over 65
Funds also for disabled and single parent families
Response to more radical schemes

23. XIV. The Social Security Act (cont.)
Huey Long’s “Share Our Wealth” program
Revenue Act of 1935 (“Soak the Rich” Tax)
Health insurance pulled due to congressional resistance
Problems with Social Security initially and long-term
Important “New Deal” legacy

24. XV. The Culture of the 1930’s
Return to political and social concern in ‘30’s literature
--John Reed Clubs
John Dos Passos
-- U.S.A. (1938)
John Steinbeck
--Grapes of Wrath (1939)
Richard Wright
--Native Son (1940)

25. XV. The Culture of the 1930’s (cont.)
I’ll Take My Stand (1930)
Thomas Wolfe
William Faulkner
--Absalom! Absalom! (1936)
James Agee and Walker Evans
--Let Us Now Praise Famous Men (1941)
1930’s Movies
-- “The Wizard of Oz”
--The Marx Brothers

26. XVI. Roosevelt’s Second Term (1937-1941)
Election of 1936
FDR vs. Alf Landon (R-Kan)
Biggest landslide since 1820
The “Roosevelt Recession” of
Harsh CIO strikes

27. XVII. The Court Reorganization Act (Spring, 1937)
Supreme Court attack on the “New Deal” ( )
FDR’s proposals for change
Court fight eroded public confidence in Roosevelt administration
Supreme Court suddenly begins to reverse itself on the “New Deal”
Congressional opposition takes shape

28. XVIII. Summary of the Results of the “New Deal”
Did not end the Depression
Many agricultural problems unsolved, especially for southern Blacks and tenant farmers
Did restore national hope
Controls were built into the economy to avert future crises
--Federal Securities Act of 1933 and SEC (1934)
The Government as “broker state”
Restoration of confidence in U.S. government and economy—but both different than before 1932