1. GREAT DEPRESSION
How did ordinary Americans endure the hardships of the Great Depression?

2. Economic Distress Unemployment Farmers American families stressed
From 3% unemployment in 1929 to 25% in 1933
1 in every 7 businesses failed (heavy industries)
Cascading unemployment
People out of work=no spending=businesses closing=more people out of work
Farmers
Overproduction and underconsumption of farming goods
Falling property values and increased foreclosures
1920, 38 of 1000 farms foreclosed in per 1000 farms closed
Mississippi tenant farmers income fell annually from $239 in 1929 to $119 in 1933
American families stressed
Loss of self respect
Marriage and birth rates declined

3. Struggling Society Loss of Homes Increased hunger and starvation
Evictions increased, which led to homelessness
Hooverville’s sprang up in major cities
Men left home and wandered the streets (hobos) and teenage boys wandered the rail lines (Hoover tourists)
Increased hunger and starvation
1 in 5 children suffered from Malnutrition, inadequate diet.
Illness increased in poor families 66%, and medical care could not be afforded
Soup kitchens and Breadlines became a common site in many cities.
New York had 82 soup kitchens providing the needy with 85,000 meals a day

4. Droughts and Floods
The Dust Bowl occurred from drought and blowing dust storms called, Black Blizzards.
Black Blizzards affected the Great Plains in 1931.
100 million acres of farmlands affected
Desertification, process in which land becomes increasing dry and desert like
Drought in addition to poor farming practices after WWI (over production), depleted the soil of nutrients and when the wind picked up, it blew the plants away
1935, government established the Soil Conservation Service to help farmers by promote better farming practices and planting trees
Depopulation
25% living in the Dust Bowl region left for nearby cities looking for work
Okies, from the fictional book “The Grapes of Wrath,” were farmers who packed up and headed for California on Rt 66 for its promise of farm work
The Great Flood of 1936
Northeast Flood, hit Pennsylvania the hardest.
84 died and 82,000 buildings destroyed
Shortly after President Roosevelt signed a flood-control legislation into action.

5. Coping with Hard Times 80,000 college students dropped out
Bartering took place to survive
Before FDR’s New Deal people looked to any source for help.
In New York charitable contributions from the wealthy increased from 4.5 million in 1930 to 21 million in 1932
Gangster Al Capone established Chicago’s first Soup Kitchen in 1930
Local and state governments offered public assistance, money, goods, and services, to those out of work. But their funds were drained quickly

6. The NEW DEAL
How did the expansion of Government during the New Deal affect the Nation?

7. The First New Deal
FDR takes office 1933 and implements his program of relief, recovery and reform, THE NEW DEAL
FDR attempted to calm people’s fears by giving a series of radio addresses called “fireside chats.”
Explanation of his plans and asking for support
Smooth calming voice and upbeat tone
People soon trusted FDR and backed the New Deal

8. Restructuring the Financial Sector
March 6th, all banks were temporary closed known as a “bank holiday”
Emergency Banking Act passed-federal government has more power to supervise banks
Sunday, March 12th 1933, one day before the banks were to reopen, FDR’s stated in his fireside chat “I can assure you, it is safer to keep your money in a reopened bank, rather than under the mattress.” March 13th, money started to flow into banks
Banking Act of created the Federal Deposit Insurance Corporation (FDIC) which insured deposits up to $5,000.
Securities and Exchange Commission (SEC) created in companies required to publish important facts about their businesses and regulated the stock market

9. New Deal: helping Business and the Economy
NIRA- National Industrial Recovery Act of 1933-increase production, boost wages and prices. Aimed to help business, labor unions and the unemployed.
NIRA created the NRA- National Recovery Act. The NRA helped business by creating codes of fair pricing, standard goods, and fair competition (moving away from laissez fair)
NIRA granted workers the right to organize and bargain collectively- establishing minimum wage and maximum hours
NIRA created the PWA- Public Works Administration to oversee public works projects billion dollars was spent to create jobs and stimulate the economy, but it worked very slowly.

10. NEW DEAL: helping Farmers
AAA- Agricultural Adjustment Act- tried to aid farmers by reducing crop production and increasing crop prices.
Goal- to reach parity- give farmers purchasing power they had previous to WWI
Farmers planted fewer crops in hopes prices would increase
AAA also gave farmers loans to pay mortgages and stay on their land

11. Economic Development
TVA- Tennessee Valley Authority- built dams, bridges, roads, planted trees, cut trails to National Forests
Home Owners Loan Corporation- helped people make mortgage payments
FHA- Federal Housing Administration- gave boost to banking and construction industries by insuring mortgages up to 80% of a homes value

12. Economic Development
CCC- Civilian Conservation Corp- provided young men, jobs, working on conservation projects like planting trees and creating national parks.
FERA- Federal Emergency Relief Administration- sent funds to state governments, which then distributed funds to the needy. (1st time in history the federal government provided direct relief to the needy)

14. Political Challenges Critics of the New Deal- ideological differences
Right Wing- conservative- thought FDR had gone too far
Wealthy industrialists, bankers, and religious leaders
American Liberty League- called the New deal socialists and unconstitutional
Left Wing-liberal-thought FDR had not done enough for the needy
Dr. Francis Townsend, Norman Thomas, and Upton Sinclair thought the New Deal should do more

15. Political Challenges
Demagogues-political leader to appeals to people’s emotions and prejudices- attacked the New Deal and were Extremes on the political spectrum.
Charles Coughlin- Roman Catholic Priest- used the radio to capture his audience and felt FDR did not do enough stating FDR had “out Hoovered Hooverville”
Huey Long- Louisiana Senator, launched a Share our Wealth Program, take money from the rich and give it to the poor. “4 % of American People own 85% of the wealth of America”
FDR claimed to be moderate- mainstream- in the middle

16. The Second New Deal
Emergency Relief Appropriation Bill- nicknamed “Big Bill” created new agencies in 1935
REA- Rural Electrification Administration -establishing electricity to farms (20% in 1935 by WWII 90% had electricity)
WPA- Works Progress Administration- put more than 3 million Americans to work building bridges public buildings and parks
WPA- arts projects- murals on public buildings

17. Supreme Court Attacks the New Deal
In 1935, the Supreme Court struck down the NIRA- stating the act violated the constitutional separation of powers given by the president, rather than congress the power to issue “codes of fair competition”
In 1936, the Supreme Court struck down the AAA on grounds that “to regulate and control agricultural production, was a matter beyond the powers delegated to the federal government”

18. Bills for workers
Wagner Act- guaranteed workers “the right to self-organization, to form, join, or assist labor organizations and to collectively bargain”
The National Labor Relations Board (NLRB) was created to supervise union elections and to penalize employers for “unfair labor practices”
1938- Fair Labor Standards Act regulated conditions in the workplace and set a minimum wage of $.25 an hour and maximum 44 hour work week

19. SOCIAL SECURITY
Social Security Act- 1935, retirement benefits to retired workers after they reach 62 and disability- workers who become too disabled and children who are severely disabled.
Social Security Act also set up an unemployment insurance program for workers who have lost their jobs and are seeking work (usually up to 6 months)

20. Supreme Court Battle 1936 FDR easily wins a second term in office
FDR feared the Supreme Court would hold him back
1937- FDR presented Congress with legislation to redesign the Supreme Court
Add a new justice for every justice over 70 (too old to keep up)
His real intention was to pack the supreme court with liberal justices who favored New Deal programs
Republicans and Democrats were OUTRAGED with FDR’s Court-Packing Plan and his legislation was shot down.

21. New Deal: Social and Political Impacts
Workers- New Deal helped many workers and labor unions.
John L Lewis, head of United Mine Workers helped form CIO- Congress of Industrial Organization
Women-New Deal helped and hurt women
Many more women in political positions (Frances Perkins- Secretary of Labor, Mary McLeod Bethune- Minority Affairs), but many women left the workforce to free up jobs for men.
African Americans- continued to suffer from oppression
FDR failed to support African American by turning down an anti-lynching bill (to keep Southern votes in congress)

22. New Deal: Social and Political Impacts
American Indians-better Deal for American Indians
John Collier, head of Indian Affairs- hoped to repair past damage with an “Indian New Deal”
Indian Reorganization Act of Indian communities were given the right to set up their own tribal communities
Mexican Americans- tough Deal for Mexican Americans
Mexican Farmers hurt badly
1/3 of Mexicans returned to Mexico
New Deal Coalition- loyalty of minorities to the democratic party
Benefits of the New Deal outweighed the costs
70% of African Americans voted for FDR
Minorities trusted FDR for progress

23. Legacy of the NEW DEAL Right to Economic Security
Social Security
Health Insurance for elderly
Price supports for farmers
Food stamps for the poor
Expansion of the Federal Government
Deficit Spending, spending more than the government receives in revenues
Government plays a more direct role in Americans lives
FDIC and the SEC protect consumers