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"Joad Family Applying for Relief" (named for family in Steinbeck’s The Grapes of Wrath)—migrant farmers seek government aid. Photo (1938), Horace Bristol.

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Presentation on theme: ""Joad Family Applying for Relief" (named for family in Steinbeck’s The Grapes of Wrath)—migrant farmers seek government aid. Photo (1938), Horace Bristol."— Presentation transcript:

1 "Joad Family Applying for Relief" (named for family in Steinbeck’s The Grapes of Wrath)—migrant farmers seek government aid. Photo (1938), Horace Bristol. NEXT The Great Depression and New Deal, 1929–1940 The Great Depression has a major impact on American society. President Franklin Roosevelt ends the economic downturn and changes the role of U.S. government.

2 NEXT SECTION 1 SECTION 2 SECTION 3 Hoover and the Crash Roosevelt and the New Deal Life During the Depression SECTION 4 The Effects of the New Deal The Great Depression and New Deal, 1929–1940

3 NEXT After the stock market crash of 1929, the U.S. economy sinks into the worst depression in its history. Section 1 Hoover and the Crash

4 Problems in the Economy Hoover and the Crash Herbert Hoover elected president (1928) 1 SECTION Despite overall prosperity, some industries are in trouble NEXT 71 percent of U.S. families earn below amount needed for decent living Industries produce more goods, people cannot afford to buy enough Unsold goods pile up in warehouses Many investors buy on speculation—buy, sell stocks, make quick profit Continued...

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6 Investors begin buying on margin: -pay small part of stock’s price as down payment, borrow the rest - sell stock, repay loan, keep profit 1 SECTION NEXT Works if prices rise, if prices fall unable to repay loans continued Problems in the Economy

7 The Crash and the Great Depression Stock prices drop sharply, people try selling thousands of shares 1 SECTION NEXT Heavy selling drives prices down more, scares off buyers On October 29, 1929, Black Tuesday, investors: - sell 16.4 million shares at prices lower than previous month Stock market prices plunge—Crash of 1929 Continued...

8 Telephone operator connected to New York, writes share values on blackboard, as club members eye market fluctuations after financial crash.

9 Many people unable to pay bank loans, banks run short of cash 1 SECTION NEXT People demand their money from banks, many banks run short, close People buy less goods, cause thousands of businesses to go bankrupt Businesses fire workers, unemployment grows to 25% by 1933 Great Depression—severe economic depression, 1929 to WW II, global continued The Crash and the Great Depression

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12 Farm prices were low; farmers suffered poverty. Although some Americans were rich, 71 percent of Americans did not earn enough to live decently; some had no jobs.

13 Railroads, textile mills, and mines were in trouble; other industries produced more goods than the public could buy. Since they could not sell all their products, they had trouble earning enough income to stay open. People who wanted consumer goods they couldn’t afford went into debt to buy them. Consumer debt grew higher than people could repay. Prices rose; investors bought on speculation and engaged in buying on margin. If stock prices fell, they would be unable to repay debts.

14 Hoover Acts Conservatively 1 SECTION NEXT Refuses to support government relief—aide to the poor Asks for increase in charitable work, not enough to help everyone Supports public works projects: -government-funded projects to build public resources, creates jobs President Hoover cuts government spending, raises taxes which: -pulls money out of economy, makes depression worse

15 Hoover Loses to Roosevelt 1 SECTION NEXT Thousands of WW I vets form the Bonus Army: -sets up camp around Washington D.C. -asks Congress to pass law granting early payment of bonuses Congress promises World War I veterans bonuses due in the 1940s Continued... "Bonus Army"— unemployed World War I veterans

16 1 SECTION NEXT U.S. troops use tear gas, remove remaining vets, families, kill 1 vet President Hoover, Senate votes down bill for bonus payment Franklin Delano Roosevelt wins presidential election (1932) Attack turns Americans angrily against Hoover continued Hoover Loses to Roosevelt

17 He thought it might make the economy worse; he thought people would grow too dependent on the government if the government paid them relief. He proposed a quality he called “rugged individualism,” and he urged volunteer efforts. He thought charities and churches should care for those in need. He did not support their request for early payment of their wartime bonus but instead backed the Senate when it voted against the bill.

18 C. Recognizing Effects, explain how most Americans responded to Hoover’s policies and actions. People grew bitter and blamed Hoover for their troubles; the public turned against him and elected his Democratic opponent, Franklin Delano Roosevelt, in 1932.

19 NEXT After becoming president, Franklin D. Roosevelt takes many actions to fight the Great Depression. Section 2 Roosevelt and the New Deal

20 Roosevelt Takes Charge Roosevelt and the New Deal Democrat Franklin Delano Roosevelt (FDR) inaugurated on March 4, SECTION NEXT Gives Americans hope, willing to try new ideas, change government Takes 3 steps to build public confidence: -declares “bank holiday”—temporary shutdown of banks -promises that only banks in good shape will reopen -fireside chats—radio talks, FDR explains policies in friendly way

21 The Hundred Days 2 SECTION NEXT Congress passes bills sent by FDR in Hundred Days session FDR pledges New Deal—programs to fight Depression Laws passed have 3 goals: - relief for the hungry -recovery for agriculture and industry -reforms to change the way the economy works

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23 temporary shutdown of all banks; only those banks in good shape would reopen Radio talks in which FDR explained his policies in a warm, friendly way programs to fight the Depression; goals were relief, recovery, and reform

24 Responses to the New Deal 2 SECTION NEXT Question payment of new programs, fear U.S. moving toward socialism Some conservatives oppose New Deal, growth of U.S. government Senator Huey Long wants redistribution of wealth in U.S. to gain power Another critic proposes pension, Americans over 60, figures disputed On radio, priest blames Jews for bad economy: -Catholic church stops priest’s broadcasts Voters support New Deal, elect more Democrats to Congress (1934)

25 The Second New Deal 2 SECTION NEXT Congress passes Social Security Act (1935): -workers, employers make payments into a special fund -they draw a pension from fund after they retire -also helps laid-off, disabled workers, needy families, dependents Working class, African Americans support FDR, wins reelection (1936) Social Security is part of programs passed in 1935—Second New Deal

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27 thought it went too far; opposed growth of federal government; feared new taxes and threat of socialism thought it didn’t go far enough; wanted redistribution of wealth thought it didn’t go far enough; wanted to change economy to help poor thought it didn’t go far enough; wanted to give $200 a month to every American over the age of 60

28 Roosevelt Fights the Supreme Court 2 SECTION NEXT Most of 9 justices of Supreme Court do not support FDR’s programs FDR wants bill allowing him to add 6 justices, gain New Deal support Strike down laws they believe gives federal government too much power Retirements, deaths allow FDR to name 5 liberal justices Democrats, Republicans criticize Court-packing bill, bill voted down

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32 The New Deal Slows Down 2 SECTION NEXT Opposition to FDR grows after Court-packing attempt Critics attack FDR’s deficit spending which involves: - using borrowed money to fund government programs Economy gets worse in 1937, many blame FDR FDR himself doubts deficit spending policy

33 Social Security Act: a law that set up a system in which workers and employers made payments into a special fund, from which they would draw a pension Second New Deal: a set of programs passed in 1935, including Social Security Act, the Wagner Act, and others “court-packing” bill: a bill, proposed by FDR, that would allow him to add up to six justices to the Supreme Court (in an attempt to gain a majority who would favor his programs) deficit spending: using borrowed money to pay for government programs

34 NEXT During the Depression, most Americans know great hardship. Section 3 Life During the Depression

35 The Dust Bowl Destroys Lives Life During the Depression In early 1930s, drought hits Great Plains, winds cause dust storms 3 SECTION NEXT Dust damages farms across 150,000 square-mile region—Dust Bowl Ruined farmers, families migrate to find work, many go to California Newcomers overcrowd California, many from Oklahoma, called “Okies”

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37 Dust stormDust storm in Spearman, Texas, April 14, 1935.Spearman, TexasApril

38 Living Through Hard Times In 1936, 9 million people in U.S. are unemployed 3 SECTION NEXT Bread lines offer food to hungry, many people lose homes Homeless often live in makeshift shelters, under bridges Boys often leave school to work, girls stay home to look after kids Many teenagers run away from home, avoid burdening their family Women often give up jobs to men, work at low- paying jobs, servants

39 Charity workers serve soup to unemployed men at lower level of Wacker Drive in Chicago, Illinois (November 4, 1930).

40 They saw their farms ruined by drought and dust storms; dust buried crops; farmers and their families became migrants in search of work but found few jobs in the Pacific-Coast states. Many people lost jobs and could not buy food for their families; thousands stood in bread lines; some families lost homes and lived in shacks or cars; children dropped out of school and tried to find jobs; fathers felt a loss of status and argued with families; women were pressured to give up jobs, but many still worked.

41 Explain the importance of each of these terms and names. Dust Bowl A 150,000-square-mile region in parts of Kansas, Oklahoma, Texas, Colorado, and New Mexico, that experienced drought and dust storms that damaged farms and crops

42 Artists Portray the Struggle Writers James Agee, Walker Evans depict harsh lives of tenant farmers 3 SECTION NEXT John Steinbeck’s novel The Grapes of Wrath (1939) depicts migrant Okies Black writer Richard Wright shows racism in novel Native Son (1940) Photographers, including Dorothea Lange, capture Depression suffering

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44 Women in the New Deal First lady Eleanor Roosevelt helps poor Americans 3 SECTION NEXT Visits coal mines, work camps, hospitals, reports to FDR Holds press conferences with women reporters: -introduces women who run New Deal programs Frances Perkins named secretary of labor, 1st female cabinet officer Supports minimum wage, limit on child employment, unemployment laws

45 First Lady Eleanor Roosevelt (left) dressed as a miner aboard a coal train bound for Willow Grove Mine in Bellaire, Ohio (1935).

46 They wrote books and took photographs that portrayed the hard times. Women were pressured to give up jobs, but many still worked; more women held jobs in FDR’s administration than ever before.

47 Minorities and the Depression FDR has several African Americans in government positions 3 SECTION NEXT FDR fails to back civil rights laws, afraid of Southern opposition Mexican Americans find few jobs, many do not benefit from New Deal In 1930s, immigration from Mexico declines, many Mexicans leave U.S. Some Mexican-American U.S. citizens forced to leave U.S. Native Americans receive arts support, some reservation land restored

48 Unions Gain Strength Labor union Congress of Industrial Organizations (CIO) open to: -women -minorities -unskilled workers 3 SECTION NEXT Labor movement uses sit-down strike: -instead of walking off jobs, workers remain idle inside plant -prevents factory owners from using strikebreakers Wagner Act (1935) gives unions more negotiation power Union membership increases 2.7 million (1933) to 7 million (1937)

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50 FDR included more minorities in government than before; he didn’t support an anti-lynching bill; even so, African Americans supported FDR because he tried to help the poor. Mexican Americans had trouble finding jobs; they received some aid from New Deal but not as much as other groups; some were deported to Mexico. Native Americans had some lands restored to their ownership; the Indian Crafts and Arts Board was created. The Wagner Act gave unions the ability to negotiate; a new labor organization, the CIO, was formed; unions used an effective new tactic, the sit-down strike; union membership grew.

51 B. Finding Main Ideas Use the back of this page to explain the importance of each of these terms and names. Congress of Industrial Organizations (CIO) sit-down strike Congress of Industrial Organizations (CIO): a labor organization that broke from the AFL in 1938 and was open to unskilled workers and more open to women and African Americans than the AFL sit-down strike: a bargaining tactic in which striking workers remain idle inside a plant so that the owner cannot hire strikebreakers to continue the work

52 NEXT The Depression and the New Deal have many long-term effects on U.S. government and society. Section 4 The Effects of the New Deal

53 Lasting Effects of the Depression The Effects of the New Deal Depression causes many to fear losing money, property again 4 SECTION NEXT Makes many feel money is very important, some feel system is lousy New Deal does not end Depression U.S. involvement in World War II makes economy grow again New Deal forever changes the U.S. government

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55 A Larger Role for Government FDR increases the president’s power 4 SECTION NEXT Does not abuse power, helps restore Americans’ faith in democracy Expands role of federal government Government runs programs for people’s welfare FDR uses deficit spending to fund New Deal, pay for the war

56 Recognizing Effects As you read this section, use the chart below to record how the Great Depression and the New Deal changed individuals and the federal government. feared that the Depression would happen again; felt they had survived a terrible battle; worried that they would lose money and property again; either thought money was most important or decided to try to change the system president increased power and became more of an initiator of bills; federal government took over care-taking responsibilities previously part of local or state governments; more commonly used deficit spending

57 New Deal Programs Today New Deal programs help Americans today in the following ways: -a national pension system -oversight of labor practices -agricultural price supports -protection for savings -regulation of stock market by Securities and Exchange Commission 4 SECTION NEXT

58 The floor of the New York Stock Exchange

59 An Ongoing Political Debate Democrats, Republicans still argue about: -federal, local government roles in various programs 4 SECTION NEXT Democrats more likely liberal, Republicans more likely conservative liberal—favors government action to bring about reform conservative—fewer government controls, individual economic freedom Social Security in trouble but still exists today

60 Finding Main Ideas In the chart below, record the answers to the following questions about the legacy of the New Deal today. The Social Security system pays out pensions; it is so popular that both political parties want to save it. The FDIC replaces the deposits that individuals had in the bank, up to $100,000. It watches the stock market and makes sure that companies follow fair practices for trading stocks.

61 A conservative wants fewer government controls and more individual freedom in economic affairs; a liberal wants the government to take action to reform society and the economy.

62 Didn’t interfere in economy; rugged individualism; encouraged charity; limited, late relief efforts Tried new ideas fireside chats New Deal Second New Deal Rejected Hoover and supported FDR; turned to bread lines; recorded hard times in art; developed fear of the future

63 Which of President Hoover’s responses to the Depression do you think was the least successful? lack of government interference in the economy; “rugged individualism”

64 Judging from President Roosevelt’s responses to the Depression, what do you think were his strengths and weaknesses as president? Strengths—tried new ideas; used problem-solving skills; communicated to the public; persuaded Congress to take action; handled a national crisis effectively. Weaknesses—tried to become too powerful; made the government too large and too powerful.

65 Which citizens’ response to the Depression was the most creative? recording hard times in art

66 This is the end of the chapter presentation of lecture notes. Click the HOME or EXIT button. NEXT

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