1. The Great Depression
And the New Deal

2. After the crash Unemployment: 25% Underemployment
No unemployment insurance
Unemployment breeds unemployment
And lack of debt repayment
Bank Closures and larger impacts

3. Agriculture Struggled throughout 1920s 60% drop in prices 1929-32
Dust Bowl Description
Causes
Drought
Few trees in plains
Erosion with new lands planted and farming techniques
Results

7. Depression results Okies Hoovervilles Desperation Riding the rails
More women working
Family life changes

8. Hoover’s Response Laissez Faire-ish attitude A few recovery programs:
Reconstruction Finance Corp. (RFC)
Hoover Dam project
Bonus Marchers (aka Bonus Boys)
Decline in popularity
1932: FDR’s election

11. Questions from FDR film clip
Define: New Deal, Pragmatism, Fireside chats
How did Eleanor Roosevelt change the role of first lady?

12. The New Deal
Definition
Basis: Keynesian Economics

13. New Deal Programs: what did each do?
Emergency Banking Act
Farm Credit Admin/ Home Owners Loan Corp
FERA
Works Programs:
CCC
WPA
PWA

14. New Deal Programs NRA AAA Rural Electrification Social Security FDIC
Goals
Supreme court strikes down
Wagner Act 1935
NLRB
AAA
Rural Electrification
Social Security
FDIC

15. New Deal Regulations SEC Fair Labor Standards Act: Minimum Wage
44 hour week
25 cents/hour
Who was left out?

16. Figure 18.2- Minimum Wage Growth

17. 17

18. Recovery Attempts: then and now
Similarities:
Gov’t spending on jobs and to help states
Stimulus Pkgs: lower taxes and spending
New Deal works programs
Help for Banks
1930s: RFC, Emergency Banking Act
2008 and 2009: Bank Bailouts
FDIC: created 1930s
Expanded 2009
Call for greater regulations
SEC created 1930s
Now?

19. Differences Fewer direct gov’t jobs
Less unity in pursuing a policy direction: today: President and Dems not as powerful.
Economy not as bad so far (compare unemployment rates)

20. Financial Crisis Bailouts
2008 $700 billion rescue plan to deal with the financial meltdown
$350 billion released to banks with no strings attached Oct 2008
Second $350 billion Jan 2009
spot&sq=tarp&st=cse

21. 2008 Stimulus: $168 billion $600 check rebate for individuals
$1200 for married couples
Tax incentives for some businesses
Some guarantees of mortgages

22. 2009 Stimulus: $789 billion $400 individuals $800 families
$282 billion in tax cuts
$400 individuals
$800 families
$507 billion spending
Transportation
Technology
Energy
Medicaid
More
NY Times on Stimulus details: economic_stimulus/index.html?scp=1&sq=stimulus%20packages&st=cse

23. Stimulus impact Did it fail?
Or did it keep deeper economic failures at bay?

24. Now what? Jobs bill and tax the wealthy?
Please read this link on the latest plans:
ed_states_economy/economic_stimulus/index.html?scp=1&sq=eco nomic%20recovery&st=cse
Or rely on the free market for recovery?
Are we in recovery? this-recovery/?scp=5&sq=economic%20recovery&st=cse

25. Political Struggles over the New Deal
Critics
Spending curtailed
S Ct undoes AAA, NRA
Roosevelt ties to pack the Supreme Court
Recession within the Depression

26. Unemployment (measured in millions)

27. Results of the New Deal More Government agencies
Gov’t involvement in managing the economy is expected
Political stability: the gov’t is trying to help
More unionization
Democratic Party gains support from Af Ams and Labor
Helps people endure
Doesn’t cure the Depression

28. Union membership

29. Indian New Deal/ Indian Reorg Act
Repealed the Dawes Allotment Act from the 1880s.
What had the Dawes Act done?
Tribal Governments created
Cultural recognition
Indian Raw Deal?