ERA OF THE MIDDLE CLASS Era of the Rich

The Great1 Depression, greatest economic downturn ever. What do the following photos tell you about life in the Great Depression?

Taken from Minnesota Historical Society

Take from Think Quest Economic History Site

 What problems were pictured?  What did the people in the photos need?

 When Franklin Delano Roosevelt took office, the country was gripped economic depression.  New Deal: policies and laws enacted under Franklin Delano Roosevelt while he was President.

Based on Keynesian Economics - government should borrow money to put people to work to get the economy moving Set up Works Progress Administration (WPA) Spent $10.5 billion on wages Put people to work! Eastern High School, Waverly

Federal responsibility for welfare Old-age pensions Unemployment insurance Categorical Assistance – Aid to blind, deaf, disabled and to dependent children – “deserving poor”

 Guaranteed workers the right to organize and bargain collectively  Set up NLRB  A Big Deal for workers!

 Created a safety net  Gave people hope  Made federal government responsible for well-begin of citizens  Strengthened organized labor

.  Failed to address civil rights, gender equality, medical care, housing.  Did not redistribute resources from rich to poor

ERA OF THE MIDDLE CLASS

 BUT: Benefits mostly went to the middle class. Middle class moved to the suburbs, leaving the poor behind.  The poor became invisible.

How were the problems of poor people in the 1960s like those in the 1930s? Do you think there were differences?

President Johnson looked for program that would shine light on his presidency. He chose to attack poverty

Some of the programs founded were: Job Corps Head start Food Stamp Act of 1964 (expanded the federal food stamp program) SSI (Supplemental Security Income) Medicaid Medicare Community Action Program

 Many people lifted from poverty  Formed basis of African-American middle class  435 bills pushed through Congress  Tried to help Americans regardless of race, ethnicity, sex, or background

 Michael Harrington: “What was supposed to be a social war turned out to be a skirmish and, in any case, poverty won.”  Like New Deal the Great Society not revolutionary: no change in structure of society

 The high costs of the Vietnam War  Oil crisis of 1973 drove up prices  Result: Stagflation -- high inflation and economic stagnation (things cost more and the economic slow- down meant less buying power).

Goals of the conservatives. 1. Shrink government 2. Reduce government regulations 3. Lower taxes. 4. Strengthen national defense.

 Wanted to use the economic crisis to dismantle the work of the New Deal and War on Poverty  Wanted to restore their class power

Breaks for business will grow the economy A good economy would trickle down to everyone else

a. Congress cut billions from domestic programs – programs from the War on Poverty b. Example: Cut 1 million food-stamp recipients from government rolls.

Cuts in income taxes of the rich and of corporations

A decrease in federal regulations: a. Environmental b. health and safety

 The mid-1990s - explosive growth of jobs in the service sector.  Most of those jobs tended to be low- paying, temporary or part-time and positions offering few or no benefits.

 Results of Reagan years: Rich got richer; poor got poorer.

ERA OF THE MIDDLE CLASS Era of the Rich