The Great Depression and The New Deal Chapter 25:

I.Causes of the Depression II.Herbert Hoover Again III.Cultural Crisis IV.Franklin Delano Roosevelt V.First New Deal I.Opposition VI.Second New Deal 1935 – 1937 VII.Minorities VIII.New Deal Abroad IX.Stalemate

I. CAUSES OF THE DEPRESSION: Black Tuesday, 10/29/29 Stocks over inflated: 1928 – 1929 – doubling. Corporate profits over inflated Wages increased for middle class Lower wage earners earned equal or less, while top 1% doubled Mal-distribution of wealth (unequally distributed) Farm wages failed to rise Dust bowl Agricultural failures Credit tightened 1929 – 1930 Inventories mounted (automobiles, construction) Factory / construction layoffs Economy contracted Stock Market crash: Margin calls Bank rush Business pulled out of banks Bank failures

Additional reasons: Over production in industry and agriculture High tariffs Collapse of European banks Poor decision making by Federal Reserve – money supply

II. Herbert Hoover Again Programs: -Farm subsidies -Tax cut -Talks with business leaders -Hawley Smoot Tariff, Placed temporary hold on any payments by foreign powers on debt, Individuals were responsible for themselves and their families

III. Cultural Crisis Expressed in literature and film. Hits people and lasts. Recession Depression Quagmire In literature: Miss Lonelyheart, 1933 and A Cool Million, 1934 In film: Fugitive from a Chain Gang, 1932 Shirley Temple Marx Brothers – Duck Soup, 1933

IV. Franklin Delano Roosevelt Born January 1882, New York, Hyde Park, Hudson Valley Attended Groton Academy and Harvard Columbia Law School Modeled himself after his cousin New York legislature Governor of New York Secretary of the Navy during WWI By 1920 – onset of polio Depression and his tonic Repeal, Dec 1933 – 21 st Amendment

V. First New Deal Bank holiday – 1 st order of business Federal Deposit Insurance Corp (1933) Tennessee Valley Authority (1933) Securities Act (1933) National Industrial Recovery Act (1933) – pillar Public Works Administration (1933) Agricultural Adjustment Act (1933) Securities and Exchange Commission (1934) Civil Works Administration (1935) Civilian Conservation Corps (1935) FDR – most important legislation – Agricultural Adjustment Act and the National Industrial Recovery Act

a)Opposition - criticism of conservative nature of reforms All seemed to favor large corps Huey Long – no trickle down Father Charles Coughlin – midwest Francis Townshend – California Labor Protests – Union membership increased Demands – rights promised in NRA Employers – not inclined By 1934 – over 2000 strikes 1934 elections - radicals

VI.Second New Deal: 1935 – 1937 Social Security Act (1935)Who didnt receive National Labor Relations Act (1935)Who wasnt covered Wagner Act (1935)Who wasnt able to join unions Holding Company Act (1935)- result? Wealth Tax Act (1935)- how successful? 59% - 75%- Prop 99.5% over $100k Banking Act Rural Electrification Board Farm Security Administration (1936) Works Progress Administration Major change between 1 st and 2 nd New Deals 1. Strong unions – NLRA, right of every worker to join. Larger expenditures for social welfare Public works projects Government spending necessary – even if resulted in debt

VII.Minorities Eastern and Southern European formed large part of union movement recognized by Democratic party as important funding provided during New Deal African Americans little gain reproduced past structures of racism ?????? What does this mean felt better segregation ended in federal govt Mexican Americans Repatriation policy – drove hundreds of thousands of Mexican immigrants out of the United States > 500,000 Quiet lives. American Indians Assimilate – Dawes Plan (1887).

VIII.The New Deal Abroad 1932/33: to benefit American domestic policies regardless of consequences Nov 1933: more internationalist – recognized USSR, Good Neighbor Policy toward Latin America, Reciprocal Trade Agreement (1934) – lower tariff as much as 50% if others do same.

IX. Stalemate Court Packing 1937 – Recession – - SS taxes taken 35, not paid til 41 - unemployment up 20% from 14 - shrinking economy Southern white farmers benefited _______ from the New Deal programs. The longevity / depth of the depression were the result of 1) 2) 3)

Films: Frank Capra – fables of simple, small-town heroes vanquishing evil forces of wealth. Duck Soup – Marx Brothers – pessimism with political institutions Superman Comics Marian Anderson – steps of capitol, honored