1. THE GREAT DEPRESSION BEGINS Photos by photographer Dorothea Lange

2. THE NATION’S SICK ECONOMY Agriculture Railroads Textiles Steel Mining Lumber Automobiles Housing Consumer goods As the 1920s advanced, serious problems threatened the economy while Important industries struggled, including:

3. FARMERS STRUGGLE No industry suffered as much as agriculture During World War I European demand for American crops soared After the war demand plummeted Farmers increased production sending prices further downward Photo by Dorothea Lange

4. CONSUMER SPENDING DOWN By the late 1920s, American consumers were buying less Rising prices, stagnant wages and overbuying on credit were to blame Most people did not have the money to buy the flood of goods factories produced

5. GAP BETWEEN RICH & POOR The gap between rich and poor widened – income disparity The wealthiest 1% saw their income rise 75% The rest of the population saw an increase of only 9% More than 70% of American families earned less than $2500 per year Photo by Dorothea Lange

6. HOOVER WINS 1928 ELECTION Republican Herbert Hoover ran against Democrat Alfred E. Smith in the 1928 election Hoover emphasized years of prosperity under Republican administrations Hoover won an overwhelming victory

8. Young Hoover supporter in 1928

9. THE 1929 CRASH In September the Stock Market had some unusual up & down movements On October 24, the market took a plunge...the worst was yet to come On October 29, now known as Black Tuesday, the bottom fell out 16.4 million shares were sold that day – prices plummeted People who had bought on margin (credit) were stuck with huge debts

10. THE GREAT DEPRESSION The Stock Market crash signaled the beginning of the Great Depression The Great Depression is generally defined as the period from 1929 – 1940 in which the economy plummeted and unemployment skyrocketed The crash alone did not cause the Great Depression, but it hastened its arrival Alabama family, 1938 Photo by Walter Evans

11. FINANCIAL COLLAPSE After the crash, many Americans panicked and withdrew their money from banks Banks had invested in the Stock Market and lost money In 1929- 600 banks fail By 1933 – 11,000 of the 25,000 banks nationwide had collapsed Bank run 1929, Los Angeles

12. HAWLEY- SMOOT TARIFF The U.S. was not the only country gripped by the Great Depression Much of Europe suffered throughout the 1920s In 1930, Congress passed the toughest tariff in U.S. history called the Hawley- Smoot Tariff It was meant to protect U.S. industry yet had the opposite effect Other countries enacted their own tariffs and soon world trade fell 40%

13. HARDSHIPS DURING DEPRESSION The Great Depression brought hardship, homelessness, and hunger to millions Across the country, people lost their jobs, and their homes Some built makeshifts shacks out of scrap material Hoovervilles - Before long whole shantytowns called Hoovervilles to mock the president sprung up

14. SOUP KITCHENS One of the common features of urban areas during the era were soup kitchens and bread lines Soup kitchens and bread lines offered free or low-cost food for people Unemployed men wait in line for food – this particular soup kitchen was sponsored by Al Capone

15. CONDITIONS FOR MINORITIES Conditions for African Americans and Latinos were especially difficult Unemployment was the highest among minorities and their pay was the lowest Increased violence (24 lynchings in 1933 alone) marred the 1930s Many Mexicans were “encouraged” to return to their homeland As conditions deteriorated, violence against blacks increased

16. RURAL LIFE DURING THE DEPRESSION While the Depression was difficult for everyone, farmers did have one advantage; they could grow food for their families Thousands of farmers, however, lost their land Many turned to tenant farming and barely scraped out a living Between 1929-1932 almost ½ million farmers lost their land

17. THE DUST BOWL A severe drought gripped the Great Plains in the early 1930s Wind scattered the topsoil, exposing sand and grit The resulting dust traveled hundreds of miles One storm in 1934 picked up millions of tons of dust from the Plains an carried it to the East Coast Kansas Farmer, 1933

18. Dust storm approaching Stratford, Texas - 1934

19. Storm approaching Elkhart, Kansas in 1937

20. Dust buried cars and wagons in South Dakota in 1936

21. Okies Kansas, Oklahoma, Texas, New Mexico, and Colorado were the hardest hit regions during the Dust Bowl Many farmers migrated to California and other Pacific Coast states Boy covers his mouth to avoid dust, 1935

22. Photographer Dorothea Lange captures a family headed west to escape the dust storms

24. HOBOES TRAVEL AMERICA The 1930s created the term “hoboes” to describe poor drifters 300,000 transients – or hoboes – hitched rides around the country on trains and slept under bridges (thousands were teenagers) Injuries and death was common on railroad property; over 50,000 people were hurt or killed

25. HOOVER STRUGGLES WITH THE DEPRESSION After the stock market crash, President Hoover tried to reassure Americans He said, “Any lack of confidence in the economic future... Is foolish” He recommended business as usual Herbert Hoover

26. HOOVER’S PHILOSOPHY Hoover was not quick to react to the depression He believed in “rugged individualism” – the idea that people succeed through their own efforts People should take care of themselves, not depend on governmental hand-outs He said people should “pull themselves up by their bootstraps” Hoover believed it was the individuals job to take care of themselves, not the governments

27. HOOVER’S SUCCESSFUL DAM PROJECT Hoover successfully organized and authorized the construction of the Boulder Dam (Now called the Hoover Dam) The $700 million project was the world’s tallest dam (726 feet) and the second largest (1,244 feet long) The dam currently provides electricity, flood control and water for 7 western states

28. Any dam questions?

29. HOOVER TAKES ACTION: TOO LITTLE TOO LATE Hoover gradually softened his position on government intervention in the economy He created the Federal Farm Board to help farmers He also created the National Credit Organization that helped smaller banks His Federal Home Loan Bank Act and Reconstruction Finance Corp were two measures enacted to protect people’s homes and businesses Hoover’s flurry of activity came too late to save the economy or his job

30. Hoover had little chance to be re-elected in 1932

31. A NEW DEAL FIGHTS THE DEPRESSION The 1932 presidential election showed that Americans were clearly ready for a change Republicans re- nominated Hoover despite his low approval rating The Democrats nominated Franklin Delano Roosevelt

33. FDR LAUNCHES NEW DEAL FDR promised a “new deal” for the American people He took office with a flurry of activity known as “The Hundred Days” The 100 Days lasted from March to June 1933

35. CONGRESS GETS BUSY FDR’s philosophy was to get people help and work through “deficit” spending During the 100 Days, Congress passed more than 15 major pieces of legislation that significantly expanded government’s role in the nation’s economy and welfare

36. TO DO LIST: #1- HELP BANKS First order of business was to get the banking system in order On March 5, one day after taking office, FDR declared a bank holiday He persuaded Congress to pass the Emergency Relief Act, which authorized the Treasury Department to inspect the nation’s banks

37. AMERICANS GAIN CONFIDENCE IN BANKS Next, FDR passed the Glass-Steagall Act which established the Federal Deposit Insurance Corporation The FDIC insured account holders up to $5,000 and set strict standards for banks to follow (today = $100,000)

38. MORE 100 DAYS ACTIVITY Federal Securities Act: Required stock info to be accurate and truthful Agricultural Adjustment Act: (AAA) Raised crop prices by lowering production Tennessee Valley Authority: (TVA) Focused on direct relief to hard hit area– created ambitious dam projects

39. TVATVA

40. ALPHABET AGENCIES CCC – Civilian Conservation Corps put young men to work Men ages 18 to 25 worked building roads, parks, planting trees (200 million trees in Dust Bowl areas) By 1942 three million men worked for the CCC

41. ALPHABET AGENCIES PWA – Public Works Administration was part of the NIRA (National Industrial Recovery Act) The PWA provided money to states to construct schools and community buildings PWA workers construct a public building in Hartford, Connecticut

42. ALPHABET AGENCIES CWA – Civil Works Administration built 40,000 schools and provided salaries for 50,000 teachers in rural America Also built 500,000 miles of roads CWA School in Woodville, CA

43. ALPHABET AGENCIES FHA – Federal Housing Administration provided home loans, home mortgages and repairs Repaired business in Childersburg, Alabama

44. ALPHABET AGENCIES FERA – Federal Emergency Relief Agency provided $500 million in direct relief to the neediest Americans Citizens wait outside a FERA in Calipatria, CA for relief checks

45. SUPREME COURT REACTS By the mid-1930s, the Supreme Court struck down the NIRA as unconstitutional (citing too much government control over industry) The Court also struck down the AAA on the grounds that agricultural was a local matter -- not a federal matter The Supreme Court -- 1935

46. FDR REGAINS CONTROL OVER SUPREME COURT From the mid to late 1930s, FDR was able to appoint 7 new judges to the Supreme Court, thus assuring that his programs would carry on unabated

47. THE SECOND NEW DEAL Although the economy had improved during FDR’s first term (1932- 1936), the gains were not as great as expected Unemployment remained high and production still lagged

48. THE SECOND HUNDRED DAYS FDR launches the “Second New Deal” also called the “Second Hundred Days” First priority was the farmers – FDR reinvigorated the AAA which provided aid for migrants, sharecroppers, and poor farmers FDR authorized more than $1 billion to help tenant farmers become landowners

50. Arkansas Tenant Farmers,193 6

51. WORKS PROGRESS ADMINISTRATION Helping urban workers was critical to the success of the Second Hundred Days The WPA set out to create as many jobs as possible as quickly as possible Between 1935-1943, the WPA spent $11 billion to give jobs to 8 million workers

52. WPA BUILDS AMERICA WPA workers built 850 airports, 651,000 miles of roads and streets, and 125,000 public buildings The WPA also hired artists, writers and photographers to create art The Davis Street School Extension in Atlanta under construction as part of the Works Progress Administration Program, November 2, 1936

53. NATIONAL YOUTH ADMINISTRATION The National Youth Administration (NYA) was created to provide education, jobs and recreation for young people Getting young people off the streets and into schools and jobs was a high priority for the NYA

54. IMPROVING LABOR RELATIONS In the Second New Deal FDR helped pass the National Labor Relations Act (NLRA) This legislation protected workers, ensured collective bargaining, and preserved the right to unionize The NLRA was also called the Wagner Act

55. CONGRESS PROTECTS WORKERS In 1938, Congress passed the Fair Labor Standards Act which set maximum hours at 44 per week and minimum wage at 25 cents per hour

57. SOCIAL SECURITY ACT One of the most important achievements of the New Deal era was the creation of the Social Security System The Social Security Act, passed in 1935, had 3 parts: Old-Age Pension Unemployment compensation Aid to families with dependent children & disabled (welfare)

58. NEW DEAL AFFECTS MANY GROUPS First Lady Eleanor Roosevelt helped women gain higher political positions during the New Deal Eleanor was influential in her role as advisor to the president Frances Perkins became America’s first female cabinet member (Labor) Eleano r & Frankli n

59. AFRICAN AMERICANS DURING THE NEW DEAL The 1930s witnessed a growth of activism for black Americans A. Philip Randolph became head of the nation’s first all-black union – the Brotherhood of Sleeping Car Porters

60. AFRICAN AMERICANS GAIN POLITICAL POSITIONS FDR appointed over 100 African Americans to positions within the government Mary McLeod Bethune headed the division of Negro Affairs of the NYA Despite these gains, FDR was never fully committed to Civil Rights Bethun e

61. NATIVE AMERICANS MAKE GAINS Native Americans made advances during the 1920s & 1930s Full citizenship granted in 1924 The Reorganization Act of 1934 gave Natives more ownership of reservations Policy was moving away from assimilation towards autonomy

62. Current locations of Native American reservations

63. FDR WINS IN 1936... AGAIN FDR had wide appeal in the United States, especially in urban areas African Americans, Jews, Catholics and immigrants all supported the popular president FDR & Eleanor campaign by rail in 1936

64. ROOSEVELT (RED) VS. LANDON (BLUE) 1936 ELECTION

65. ROOSEVELT’S FIRESIDE CHATS FDR communicated to Americans via radio His frequent “Fireside Chats” kept Americans abreast of the government’s efforts during the Depression

66. THE IMPACT OF THE NEW DEAL Over time, opinions about the merits of the New Deal and FDR have ranged from harsh criticism to high praise – usually along partisan lines Conservatives felt FDR made government too large and too powerful Liberals countered that FDR socialized the economy because Americans needed help

67. LEGACIES OF THE NEW DEAL FDIC – banking insurance critical to sound economy Deficit spending has became a normal feature of government Social Security is a key legacy of the New Deal in that the Feds have assumed a greater responsibility for the social welfare of citizens since 1935