2. Chapter 26 FRANKLIN D. ROOSEVELT AND THE NEW DEAL

3. Uneven Prosperity Many Americans deeper in debt by late 1920s 1919 to 1921 annual farm income declined from $10 billion to $4 billion Rich & poor gap growing Income of wealthiest 1% rose 75% Rest of the 99% rose 9% 80% of families had no savings

4. Income Distribution, 1929

5. The Great Crash 1928: Soaring stock prices attracted individual, corporate investment 1929: Stock market crashed – Businesses laid off workers – Demand for consumer goods declined

7. BlackThursday Black Thursday PRICES OF STOCKS CRASH IN HEAVY LIQUIDATION TOTAL DROP OF BILLIONS ---------- PAPER LOSS $4,000,000,000 ---------- 2,600,000 Shares Sold In The Final Hour In Record Decline ---------- MANY ACCOUNTS WIPED OUT Thursday - October 24, 1929 - Stock Market crashes Friday - October 25, 1929 - The Market Rallies - Catastrophe is averted Monday – October 28, 1929 - Leaders find economy is sound Tuesday – October 29, 1929 - The Market Opens and stock market crashed

8. Stock Prices

9. Crash Leads to Great Panic After crash, people panicked and withdrew money from banks to repay loans But many banks didn’t have their money 1933- 11,000 of nations 25,000 banks failed

10. Great Panic Leads to Great Depression 1929-1932- GNP dropped from $104 to $59 billion 1932- 90,000 businesses bankrupt 1929-1933- Unemployment- 3% to 25% Depression across world made it difficult to sell American goods abroad

13. Unemployment, 1929–1942

14. Bank Failures, 1929–1933

15. Effects of the Depression Hardship affected all classes The middle class lost belief in ever- increasing prosperity Thousands of young homeless, jobless

16. Poverty Strains Society No federal system of direct relief 2,600 schools shut down – 300,000 students out of school 1928-1932- suicide rate rose 30% 3 times as many people admitted to mental hospitals as in normal times Adults stopped going to doctor and dentist, stopped taking care of themselves

17. Too Many Homeless In cities, many ppl left homeless, sleeping in parks and sewer pipes Soup kitchens and bread lines formed across country Built shantytowns- little towns consisting of shacks of tar paper, cardboard, or scrap material – Called Hoovervilles to mock the Pres.

18. “Here were all these people living in old, rusted-out car bodies. There were people living in shacks made of orange crates. One family with a whole lot of kids were living in a piano box.” -woman commenting on Hooverville in OK

19. The Dust Bowl Environmental crisis in the 1930s in which Great Plains suffered from severe drought and dust storms Plowing had removed protective grasses, over production, and draught all contributed Caused 1000s to abandon farms

20. “I saw and approached the hungry and desperate mother, as if drawn by a magnet. I do not remember how I explained my presence or my camera to her, but I do remember she asked me no questions. I made five exposures, working closer and closer from the same direction. I did not ask her name or her history. She told me her age, that she was thirty-two. She said that they had been living on frozen vegetables from the surrounding fields, and birds that the children killed. She had just sold the tires from her car to buy food. There she sat in that lean- to tent with her children huddled around her, and seemed to know that my pictures might help her, and so she helped me. There was a sort of equality about it.” -Dorothea Lange

21. Rampant Unemployment 1933- Over 12 million unemployed By 1932, food prices had fallen so low that farmers began to destroy crops + livestock – too expensive to harvest food or take livestock to market

22. Unemployed men vying for jobs at the American Legion Employment Bureau in Los Angeles during the Great Depression.

24. Hoover and Voluntarism Hoover initially sought solution through voluntary action, private charity – “Rugged individualism” – Opposed any federal welfare Bonus Army & General MacArthur Hoover resisted Democratic efforts to give direct aid to the unemployed – Perceived as indifferent to human suffering

25. Bonus Army March

26. Hoover Dam Boulder Dam- world’s tallest dam Provides electricity, regular water supply, and flood control Employed many people

29. The Election of 1932

30. “So first of all let me assert my firm belief that the only thing we have to fear is fear itself.” -First Inaugural Address, FDR, 1933

32. The Hundred Days Banking system saved from collapse Fifteen major laws provided relief Tennessee Valley Authority was the most ambitious one

33. The Tennessee Valley Authority

34. Social Security 1935: Social Security Act passed Criticisms – Too few people would collect pensions – Unemployment package inadequate Established pattern of government aid to poor, aged, handicapped

35. Labor Legislation 1935: Wagner Act – Allowed unions to organize – Outlawed unfair labor practices 1938: Fair Labor Standard Act – Maximum hour – Minimum wage – Rural Electrification Administration brought electricity to 90% of farmers who did not have it in 1930

36. Impact of the New Deal Had a broad influence on the quality of life in the U.S. in the 1930s Helped labor unions most Helped women, minorities least

37. The Election of 1936 FDR’s campaign – Attacked the rich – Promised further reforms – Defeated Republican Alf Landon Democrats won lopsided majorities in both houses of Congress FDR coalition: South, cities, labor, ethnic groups, African Americans, poor

38. The Election of 1936

39. The Supreme Court Fight Supreme Court blocked several of FDR’s first-term programs 1937: FDR sought right to "pack" Court Congressional protest forced retreat

42. The New Deal and American Life New Deal’s limitations – Depression not ended – Economic system not fundamentally altered – Little done for those without political clout Achievements – Social Security, the Wagner Act – Political realignment of the 1930s