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Germany’s Great Depression (Unemployment)

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1 Germany’s Great Depression (Unemployment)

2 Japan’s Great Depression (Unemployment)

3 Great Britain’s Great Depression (Unemployment)

4 United States Great Depression (Unemployment)

5 The Election of 1932 FDR Hoover


7 100 DAYS Roosevelt’s 100 days was very successful….FDR and Congress went to work providing for direct relief, recovery and reform. From March of 1933 to June of 1933, Roosevelt sent 15 proposals to Congress and all 15 were adopted Congress and President tried anything reasonable to overcome the Great Depression. 100 days

8 FDR's NEW DEAL NEW DEAL CARTOON Govt. programs which provided direct relief to suffering Americans through govt. spending……… Renew democracy Restore confidence in the banking Stimulate economy Put people back to work. Restore self confidence Social Engineers Brain Trust How? FDR’s 3 R’s Relief: ease suffering of the needy Recovery: begin economic growth Reform: help prevent future economic crises

9 FDRs Advisers and “Brain Trust”
Finance: Baruch Politics: Howe Professors: Tugwell Interior: Ickes Labor: Perkins Agriculture: Wallace Treasury: Morgenthau Jr. FDRs Advisers and “Brain Trust”

10 Fireside Chats Series of radio addresses by FDR
30 total between 1933 to 1944 FDR used these to calm American people down. CLICK on the radio to link to hear the 1st chat on the Bank Crisis

11 The Banking Crisis People w/d $$; banks fail “Banking Holiday”
Emergency Banking ReliefAct Fireside Chat Glass-Steagall Act Creates the FDIC Conservative An example of Recovery and Reform Weak banking system placed drag on the entire economy, curtaing consumer soending and business investment Widespread failings caused people to go to their banks and w/d money. 2 days after taking office he, calls for a “Banking Holiday” (March 6) Called Congress into session 4 days later Congress passed the Emergency Banking Act which permitted banks to reopen if a Treasury Dept inspection showed that they had sufficient cash reserves. Those that didn’t reopen would be bolstered by govt loans. Gave 1st fireside chat. When thwe banks opened again on March 13, deposits exceeded withdrawals Glass-Steagall Act: created FDIC (Federal Deposit Insurance Corporation which insured deposits up to $2500 (now 250K) and prohibited banks from making risky, unsecured investments. Roosevelt removed the US Ytreasury from the Gold Standard which allowed the Fed to lower interest rates which had neen raising rates since 1931. Conservative action: he didn’t nationalize banks. He just through govt resources at the problem and saved private ownership The Banking Crisis

12 Goals of New Deal Program
Relief Help people right away Recovery Get the US out of the Depression Reform Make sure another depression does not happen

13 New Deal: Relief Federal Emergency Relief Association (FERA)‏
Civil Works Administration (CWA)‏ Public Works Administration (PWA)‏ Civilian Conservation Corps (CCC)‏ Farm Credit Association (FCA)‏ Homeowners Loan Corporation (HOLC)‏ Tennessee Valley Authority (TVA)

14 New Deal: Recovery Works Progress Administration (WPA)‏
National Recovery Administration (NRA)‏ Agricultural Adjustment Act (AAA)‏ National Youth Administration (NYA)‏ Federal Housing Act (FHA)‏

15 New Deal: Reform Federal Deposit Insurance Company (FDIC)‏
Securities and Exchange Commission (SEC)‏ Wagner Act (NLRB)‏ Social Security

AAA / Agricultural Adjustment Act Protected farmers from price drops and over production.. US Govt. Paid farmers (subsidies) not to grow wheat, cotton, corn, hogs, rice, tobacco, dairy products AAA told farmers how much they should produce Subsidies provided by increased taxes on food processors alphabet

17 Mixed Results Yay! Boo! Rise in prices after 1933 1933: $2 billion
Favored large landowners Tenants & sharecroppers kicked off land S. Court finds AAA unconstitutional in 1936 Modified in 1936 and 1938 Benefitted large farmers b/c able to buy machinery and fertilizer and able to farm more efficiently on smaller land. They kicked off tenants and sharecroppers off the land in order to reduce acreage. 3 million people left the land in the 1930s and went to the cities Mixed Results

NIRA / National Industrial Recovery Act Created NRA to enforce codes of fair competition, minimum wages, and to permit collective bargaining of workers. alphabet

19 NRA: The Ideal Companies would cooperate
Set limits on production Prices Codes of fair competition In exchange, labor would get concessions Max hours Minimum wages Collective bargaining Section 7(a) is what gave workers the right to form unions and engage in collective bargaining By summer of 1933: 500 industries had adopted the codes covering 2.5 million workers. Steel Industry to small businesses making pet food and costume jewlery NRA: The Ideal



22 NRA: The Reality Codes poorly written Huge bureaucracy
Large producers dominated code-writing process No enforcement mechanism to enforce Section 7(A) Production actually decreased 1935: Supreme Court declares it unconstitutional Codes were hastily and poorly written Huge bureaucracy with no prior experience in running so huge a program Large producers dominated the code-writing process and obviously codes would work to their advantage Prices artificially raised Section 7(a) had no enforcement mechanisms so the wage increases that were promised were not followed Production actually declined 1935: Supreme Court ruled that the law was unconstitutional NRA: The Reality

TVA / Tennessee Valley Authority Federal government built a series of dams to prevent flooding and sold electricity. First public competition with private power industries. Improved water transportation, virtually eliminated flooding in the region, provided electricity to thousands who never had it before Caused private power rates to delcine. Made no serious effort to challenge local customs and racial prejudices alphabet






29 NEW DEAL: ALPHABET AGENCIES RELIEF: Ease Suffering of the Needy
FERA / Federal Emergency Relief Act Distributed $500 million of direct aid to unemployed workers such as food, clothing and grants of money to cities. Needed to address the problems of massive unemployment. By 1933 local and state govts had exhauted their resources and were looking for help from Washington FDR wanted to avoid a budget deficit he asked Congress to provide relief fo millions. FERA provided federal funds for state relief programs. Roosevelt and the head of the FERA didn’t like the “dole”. Hopkins said “I don’t tjhink anybody can go year after year, month after month accepting relief without affecting his character.” To support the values of individualism, the NEW DEAL put people to work.

30 Civil Works Administration (CWA): 1933-34
Repaired bridges, built highways, constructed public buildings W/I 30 days: 2.6 million men and women employed 1934: 4 million Civil Works Administration (CWA):

31 NEW DEAL: ALPHABET AGENCIES RELIEF: Ease Suffering of the Needy
CCC / 1933 to 1942 Civilian Conservation Corps Sent 3 million young men to work camps to build bridges, replant forests and other conservation tasks. Develop job skills and improve environment. Removed surplus of workers from cities, provided healthy conditions for boys, provided money for families. FDR’s favorite Employment to the millions of young men who could find no jobs in the cities Created camps in national parks and forests and in other rural and wilderness settings. Men worked in semimilitary environment to plant trees, build reserviors, develop parksm and improve agricultural irrigation. CCC camps segregated by race. A few avaialble to Mexican Americans., Aas and Nas

32 Civilian Conservation Corps




36 NEW DEAL: ALPHABET AGENCIES RELIEF: Ease Suffering of the Needy
HOLC / 1933 Home Owners Loan Corporation Prevented mortgage foreclosures. US Govt. bought up mortgages and refinanced them so that homeowners could pay their mortgages. Refinanced mortgages for 1 milion homes. 1934: FHA established to insure mortgages for new contruction and home repairs

REFORM: Prevent Another Depression SEC / 1933 Securities and Exchange Commission Regulated stock market and restricted margin buying, and frauds. alphabet

38 Criticisms of New Deal LEGACY OF NEW DEAL
US government and President too powerful Violated laissez faire Supreme Court declared NIRA and AAA unconstitutional Critics: American Liberty League Father Charles Coughlin Dr. Francis Townsend Huey Long Deficit spending: Govt. spends $$$ to stimulate the economy and help people even if it means US Govt. goes into debt. Welfare state----Created a population of Americans who relied on the US Govt. to live 100 days

39 Liberty League FDR had gone TOO FAR with the New Deal.
Interfering with business and peoples lives. Government was taking away freedoms from Americans. By the end of 1934, a group of the most fervent and wealthiest Roosevelt opponents led by the DuPont family, reshaped the American Liberty League which was formed to oppose prohibtion into an organization to arouse public opposition to the New Deal’s dictatorial policies and its upposed attacks on free enterprise.

40 Economic system based on cooperation rather than competition
SOCIALISM Economic system based on cooperation rather than competition Believes in government ownership of business and capital Government controls production and distribution of goods. Opposite of laissez faire and capitalism

41 NAM: influence would stretch far into post WWII era
Business leaders who felt a publicity campaign was needed to serve the purposes of busoiness salvation. NAM produced radio prgoramsm motion pictures, billboards and direct mail . Promoted free enterprise and unfettered capitalism. After WWII would emerge as stauchest critic of liberalism and would forge alliances with coservative politicians like Barry Goldwater and Reagan

A Roman Catholic priest. Radio Priest in Detroit Michigan. Criticized FDR in weekly radio program. 10 million listeners. Criticized FDR’s farm program Believed an international conspiracy of bankers existed and FDR was influenced by them. He called for the nationalization of banks and utilities. (US Govt. controls banks, Socialism) Fascist; Anti-Semitic overtones. Weekly sermons launched in 1926. Supported remonitization of silver, issuing of greenbacks, nationalizing banking system. Felt FDR had not dealt harshly enough with the money powers Established own organization called the National Union for Social Justice Cathlic Church shut him up evetually

43 DR. FRANCIS TOWNSEND He wanted the government to help older citizens.
Retired California Physician. Suggested a $200 per month pension for people over 60. Open jobs for the younger unemployed. More than 5 million members Plan was defeted in Congress in 1935 Spending all $200 would also be required to boost economic demand. Townsend Clubs created all over the nation. Influenced FDR’s creation of Social Security

44 Senator Huey Long FDR was NOT doing enough for the poor.
Long pushed his “Share Our Wealth” program. Take all income over $1,000,000 to give: House Car Annual Salary For all Americans From Louisiana Attacked banks, oil companies and utilities and the conservative political oligarchies attached to them. Elected gov in 1928. Progressive accomplsihments: building roads, schools. Hospitals, revised tax code, distributed free textbooks, lowered utility rates. 1930: became Senator At first supporter of FDR but then broke with President Assassinated in 1935 by the son of a judge Long was trying to redistrict out of a job

45 The Second New Deal & the Redefining of Liberalism
Attacks on the New Deal increased and FDR moved to the left. Historians call it the 2nd New Deal. He criticizes the “money classes”, proudly stating “we have earned the hatred of entrenched greed.” Needed to counter his critics EX: Revenue Act of 1935L substantial tax increase on corporate profits and esatte taxes. Congress attacked and Congress had to modify. But FDR was ok b/c he had countered the Share Our Welath proposal with one of his own

46 Second New Deal Emphasis on Social justice Social safety net
Use the power of the govt to guarantee economic security and welfare of old, disabled and unemployed Welfare state Second New Deal

REFORM: Prevent Another Depression Wagner Act / 1935 National Labor Relations Act Reaffirmed labor's right to unionize, prohibited unfair labor practices, and created the National Labor Relations Board. When the SC struck down the Natioanl Industrial Recovery Act, labor clamored for a law that would allow workers to organize and bargain collectively with employers. Named after the progressive Senator from NY Robert Wagner (Wagner Act) alphabet

48 Labor Militancy 1934: NIRA influence Industrial Unionism; anti-AFL
All workers in one industry should be in 1 union, regardless of skill John Lewis: walks out of AFL 1936: Congress of Industrial Organizations Women, blacks Textiles, laundries, tobacco 193os: more ppl joining unions because of NIRA AFL still supporting craft workers But new idea was picking up steam: Industrial unionism John Lewis the fiery leader of the United Mine Workers walks out of the AFL and sets up the CIO Appeals to eomen and blacks and the industries where they constitute many of the workers Labor Militancy

49 Sit Down Strikes Dec. 1936 GM Detroit plants By Feb 1937: 17 GM plants
Female supporters sent food/clothing Ignored police and court injunctions Governor and federal govt refused to intervene GM relents; recognizes UAW United Auto Workers Fighting for recognition


51 IN the steel industry, union recognition much harder.
The SWOC (Steel workers’ organizinf Committee, lyter the United Steelworkers of America) began an organizing drive US Steel in March of 1937 rather than face a strike at a time when they thought they were going to recover from the Depression agreed to recgonize it But in “Little Steel” companies that was harder Memorial Day 1937, workers at Republic Steel gathered with their families for a picnic and demonstration in South Chicago. When they attmepted to msrch peacefullyy toward the steel plant, police open fired and 10 were killed, another 90 wounded The harsh tactics won out. But one of the last gasps of that type of brutal strikebreaking. 1937: 4700 strikes: 80% settled in favor of the unions Memorial Day Massacre 1937

52 Unions win out 1937: 4700 strikes 80% settled in favor of unions
8 million union members (1932: 3 million) By 1941: 10 million included workers of Little Steel Unions win out

REFORM: Prevent Another Depression SSA / Social Security Act It provided retirement pensions, unemployment insurance, aid to blind, deaf, disabled, and dependent children. alphabet

54 Social Security Act of 1935 System like this had already existed in GB and Germany Townshend and Long movements caused FDR to act Childrens welfare advocates also putting pressure on FDR over the fate of fatherless chiuldren

55 Old Age Pension Social Security Dependent Families + Disabled
Unemployment Insurance Old Age Pension Dependent Families + Disabled Federal and state unemployment insurance Knew that cumpolsory pesion and uinemployment benefits would be controversial on its own, he did not include a national health insurance, fearing the entire legislation would be shot down Never before had the federal govt assumed such responsibility to its pppl.. Aid to dependent Children (ADC) became one of the most controversial. ADC covered only 700K by By 1994 Aid to Families w/ Dependant Children ecrolled 14.1 million. Grew enormously in the 1960s and became a cornerstone of the welfare state until it was eliminted by Clinton in 1996

56 New Deal Liberalism Classical Liberalism (Conservatives)
Individual liberty is foundation of democracy Free market policies Weak govt New Deal Liberalism (Liberals) To preserve individual liberty, govt must assist needy and guarantee basic welfare of ppl Demcratic Parties deended heavily on white voters in the Sout who were determined to keep Aas powerless and poor. Many democrats in North and West were the center of New Deal liberalism and opposed racial discrimnation. New Deal Liberalism

57 Works Progress Administration
Social Security was long term but unemployed still need immediate help WPA was like CWA work relief but much bigger in size (budget of $5 billion in first 2 years) and in its energy and creativity Works Progress Administration

58 WPA Harry Hopkins 110K public buildings 600 airports
500K miles of roads 100K bridges 2.1 million workers Btw, most of work relief went to men. Again the ide that women needed to be treated within context of family. They got cash assistance Federal Writers Project Federal Arts Project Federal Music Project National Youth Administration WPA







65 By 1936: the economy was visibly reviivng so no doubt he would win second term
Republicans put up a weak campaigner in Alf Landon Huey Long Was dead

66 Greatest landslide up to that point
Saw the party relaignment that the New Deal produced Democrats now had a broad coalitionL western and southern farmers, urban working classesm the oor and unemployed and the black communities in the Northern cities, as well as traditional progressives and new liberals.

67 Court Packing…. The Supreme Court struck down several New Deal laws as unconstitutional (NRA and AAA) FDR wanted to increase the size of the court from 9 to 15. Would appoint justices who were pro-New Deal Minimum-wage law, Wagner Act and Social Security Act upheld Hurt FDR w/ southern Democrats and conservatives Thought election was a mandate, but misread the public. Seen as a power grab In Feb 1937 Federal court system overhaul incuding adding Supreme court justices who were “overworked: and needed younger blood. But before Congress took up the measure the Supreme Court intervended March 1937West Coast Hotel v Parrish (5-4 decision in which 3 progressives and 2 justices that were on the fence upheld the state minimum wage law)

68 FDR and the Supreme Court

69 1929: $82 billion 1932: $40 billion Summer 1937: $72 billion Unemployment had declined to 14% Everybody believed the wose was over So he takes opportinity to try and balance the budget. Cuts the federal budget and Congress then cuts WPA funding by half…lay off 1.5 million workers Federal Resevre fearing inflation, raises interest rates.. Stock market drops sharply, unemplouyment goes back up to 19% FDR quickly reverses course

70 Keynesian Economics John Maynard Keynes (British)
Govt intervention can smooth out high and lows of business cycle Deficit spending Manipulate interest rates and money supply But new deal over basically by 1938 because FDR had too much congressional oppostiion and attention went overseas.

71 Limits and Legacies of the New Deal

72 “The Broker State” Remake American capitalism (not to be)
Federal govt now a mediator b/w competing interests Govt to intervene when necessary Help/limit the power of groups Goal was to produce new forms of cooperation and control that would create a harmonious ordered economic world. By 1939, they created something else American business found itself competing for influence with an increasingly powerful labor movement, organized agriculture and then later racial, ethinic and religious minorities and women. Assistance goes to those groups that have the power political and economic to demand it. Not much representation with those too weak to demand help and not visible “The Broker State”

73 African Americans & the New Deal
Not hostile, but not much to advance them Reinforced patterns of discrimination Less pay, less skilled jobs “Black Cabinet” FDR not willing to lose support of Southern Democrats Adminstration more sympathetic than any previous govt. Influence of Eleanor Roosevelt Second level positions in his administration (Robert Weaver, Milliam Hastie, May cLeod Bethone 1932: most blacks votijg Republican By 1936: 90% voted Democratic Existing patterns of discrimnation: CCC separate black camps NRA tolerated paying blacks less than whites for the same job Excluded largley from work in TVA WPA relgated blacks Hispanics and Asians to least skilled and lowest paying job African Americans & the New Deal

74 Not outright hostile but not much to advance them
Symbolic gestures Reinforced gender norms First female cabinet member: Francis Perkin (Sec. of Labor); added women to fed bureacracy Increased their role within Demcratic Party Social Security Act had the Aid to Dependent Children pgm for women NRA sanctioned wage paractices that discriminated against woen Women and the New Deal

75 New Deal in the West and South
Received more federal funding Agricultural pgms Public works pgms Water and power Least developed region of country Didn’t challenge prevailing racial norms TVA West and South benefitted disproportionately from New Deal Relief and public works pgms New Deal Relif pgms in South didn’t challenging prevailing racial norms. Anglos received the most generous aid West: agricultural pgms had an enormous impact on the west because farming remained central to the region Public Works pgms: most in the west. Most dams. Cheap electric power South was always seen as being backwards. South was seen as the number one economic problem New Deal in the West and South

76 New Deal Failures Didn’t revive/reform economy
Didn’t fully embrace govt spending for recovery Didn’t end the Depression Didn’t alter the distribution of power and wealth New Deal Failures

77 New Deal Impact on Economy
Helped elevate new groups Contributed to economic development of the West and South Increased regulatory functions of the federal govt Created the basis of the federal welfare state The new deal had important lasting effects on the behavior and structure of the American economy New groups: farmersm workers to positions from which they could at times effectivly challenge the power of corporations Regulatory functions would help stabilize previously trobled areas of the econmy: stock market, nbanking system. Conservative New Dealers would make sure that welfare system would be limited in its impact. It would reinforce patterns of gender and racial discrimination. New Deal Impact on Economy

78 New Deal and American Politics
FDR enhanced the power of federal govt Presidency became the preeminent center of authority Democratic Party domination American people had greater expectations of govt People felt there was a possibility again…our fortunes need not be left entirely to the chance or the workings of the market. PPl felt convinced that ppl deserved some protection from unpredicatibility and instability of the moddern economy New Deal and American Politics

REFORM: Prevent Another Depression SSA / Social Security Act Response to critics (Dr.Townsend and Huey Long), it provided pensions, unemployment insurance, aid to blind, deaf, disabled, and dependent children. alphabet

LEFT CENTER RIGHT Socialism Green Party Communism No Govt Democrat Independent Reform Republican KKK Dictator Anarchy Radical Liberal Moderate Conservative Reactionary Fascist The New Deal walked a tightrope between the extreme positions of the left and right. Critics would claim it was unconstitutional, socialism, anti-laissez faire and went too far to the left. Others would claim the New Deal didn’t go far enough to the left……

81 Successes of New Deal LEGACY OF NEW DEAL
AMERICANS IN 1939 WHO WANTED THE NEW DEAL TO CONTINUE WAS 55%… % REGARDED IT AS A BAD INFLUENCE AND WANTED A NEW PRESIDENT…………... Stimulated the economy Put people back to work…. Improved morale and self-confidence of the people US Govt’s. role changes and became directly involved in helping people WWII ended the Great Depression not FDR’s New Deal 100 days

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