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Children in Monroe County, Georgia, during the Great Depression.

The Great Depression andthe New Deal, 1928–1940

The strong economy of the 1920s collapses, leaving many without jobs or homes. The federal government launches ambitious programs to help Americans recover.

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The Great Depression andthe New Deal, 1928–1940

SECTION 1

SECTION 2

SECTION 3

The Great Depression

The New Deal in the South

Life During the Depression

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Section 1

The Great Depression The American Economy in the 1920s has weaknesses.

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The Crash of 1929 and the Great Depression

The Great Depression

Black Tuesday• President Herbert Hoover opposes government

interference in business• More people invest in stock market in 1920s than

ever before• Stock market begins to drop, September 1929;

drop believed temporary• Market crashes on October 29, 1929—Black

Tuesday- some investors lose millions, companies and

banks go bankrupt• Crash is start of Great Depression—long period

of economic problems

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1

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1

Many Factors Involved• Great Depression and Black Tuesday are results

of several factors- most wealth held by few people; many lack

money to buy things- consumers not buying enough goods; prices

too high on some items- farmers producing too much, lowering farming

prices- falling demand hurts industries; business,

public debt too large - government not monitoring banks, economy, or

controlling cash flow

Causes of the Depression

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1

Agriculture• Georgia farmers in serious trouble by 1930s• Boll weevil ruins cotton crops; 3 million acres

abandoned• Cotton prices drop, textile mills close • Many landowners lose farms, kick sharecroppers,

tenants off farms

Impact of the Crash on Georgians

Continued . . .

Industry and Business• Depression wipes out Georgia’s industrial gains of

1920s • Many lose jobs; small businesses hit especially

hard

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1

Unemployment• At Depression’s height, 25% of working-age

Americans unemployed • In 1932, employed people face pay cuts up to

50%• People rely on churches, community

organizations for food• Many live in “Hoovervilles,” communities of

makeshift shacks

continued Impact of the Crash on Georgians

Image

Banks• Thousands of banks close doors, lack cash to pay

customers• Many banks invest in companies that go broke at

Depression’s start

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1

Slow Response• Hoover tries to balance U.S. budget; cuts

spending, raises taxes- pulls cash out of economy; economists believe

it worsens slump• By 1932, Hoover sets up public works programs

to create jobs

Hoover Reacts Conservatively

Time for Revolution?• Communist Party in U.S. is small; sees crisis as

chance to revolt• Communist Angelo Herndon organizes 1932

march on Atlanta city hall • City boosts emergency relief, but Herndon

convicted of insurrection

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1

Roosevelt Promises Action• Hoover’s response to crisis is slow; people want

action• Franklin D. Roosevelt runs against Hoover in

1932, vows change• Roosevelt elected; creates Brain Trust before

inauguration• Brain Trust—group of experts with plans to fight

Depression

The 1932 Presidential Election: “Try Something”

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Georgia and the South benefit from New Deal programs.

Section 2

The New Deal in the South

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“A New Deal for the American People”

The New Deal in the South

The Hundred Days• Roosevelt takes office March 4, 1933, sets New

Deal in motion• New Deal—government programs designed to

fight the Depression • Hundred Days are session of Congress beginning

March 9, 1933• During Hundred Days, Roosevelt proposes new

federal agencies- legislation based on “three Rs”—relief, recovery,

reform• New Deal tries to attack all aspects of Depression,

rebuild economy

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2

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Talmadge Resists the New Deal

Resistance to Job Programs• Eugene Talmadge elected Georgia governor,

1932; opposes New Deal- fears people will not work on farms if job

programs pay more• U.S. keeps wages similar to local pay, programs

stop at harvest • Talmadge appeals to small farmers, workers; is

reelected in 1934• Voters eventually want New Deal help, elect

Eurith D. Rivers, 1936• Rivers’s administration called “Little New Deal”

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2

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New Deal Programs in Georgia

Agricultural Adjustment Administration (AAA)• New Deal programs are national; affect Georgia

along with U.S.• AAA pays farmers to reduce crop, herd sizes;

reducing supplies• Many tenant farmers and sharecroppers no

longer needed• Program hurts African Americans, poor whites;

landowners benefit

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Continued . . .

ImageCivilian Conservation Corps (CCC)• Over 100 CCC camps in Georgia, 15 for African

Americans- create environmental projects, buildings in

national, state parks

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Federal Deposit Insurance Corporation (FDIC)• By 1933, many people are afraid to use banks • FDIC guarantees bank account safety, restores

confidence in banks

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2

continued New Deal Programs in Georgia

National Industrial Recovery Act (NIRA)• NIRA, gives workers right to unionize, encourages

minimum wage• Other laws set better working conditions, limit work

hours• Southern textile mill workers strike in Uprising of ’34• 75% of Georgia textile workers walk out, National

Guard ends strike

Continued . . .

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Tennessee Valley Authority (TVA)• TVA builds dams in Tennessee River Valley to

generate electricity• Brings electricity to rural areas in seven states

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2

continued New Deal Programs in Georgia

Rural Electrification Administration (REA)• Wires rural areas for electricity, supplies nearly

300,000 families

Continued . . .

African Americans and the New Deal• African Americans benefit less than whites from

New Deal - get average of $19.29 relief per month

(whites get $32.66)- still support Roosevelt, New Deal

programs, Democrats

Image

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Women in the New Deal• First lady Eleanor Roosevelt champions African

Americans- backs social reforms, women’s and children’s

issues• More women hold positions in Roosevelt

presidency than ever before• Secretary of Labor Frances Perkins is first female

cabinet member- supports minimum wage, child labor laws,

unemployment compensation

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2

continued New Deal Programs in Georgia

Image

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The Second New Deal

The Second New Deal in Georgia• Second New Deal replaces New Deal programs

found unconstitutional• Works Progress Administration (WPA) creates

Federal Writers Project- funds public art projects; murals painted for

Georgia post offices- collects data on history and culture of each

U.S. state• Soil Conservation Service teaches farmers to

rotate crops- introduces plants to control erosion—one,

kudzu, becomes problem

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2

Chart

Section 3

Life During the DepressionDuring the Depression, people suffer great hardships but find ways to survive.

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Living with the Depression

Life During the Depression

Jobs• New Deal unemployment still high—9 million out of

work in 1936• Georgia landowners hire few workers; people

wander, seek land, work• Erskine Caldwell, Georgia author, writes Tobacco

Road, 1932- novel about white sharecroppers is negative,

depicts hopelessness • Many rely on New Deal programs for work; often

whole families work• Many families cannot afford to pay mortgages; lose

homes

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3

Continued . . .

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Places to Live• Hoovervilles grow in size, number; most city

people live in slums• In Atlanta, 39% in substandard housing—mostly

African Americans• Public Works Administration (PWA) put in

place to clean up slums- builds public housing—Techwood Homes

(1935) for whites• University Homes (1937) for African Americans

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3

continued Living with the Depression

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Forgetting One’s Troubles• People find ways to briefly forget troubles; sports,

movies popular• Fishing, games, window shopping are

inexpensive entertainment

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3

Entertainment During the Depression

Gone With the Wind• Atlanta premiere of Gone with the Wind movie,

December 15, 1939• Based on best-seller by Margaret Mitchell;

premiere tickets are $10

Radio• People gather to hear radio shows, similar to

watching TV today• Sports attendance drops, many people listen to

games on radio

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Some Georgians Leave• New Deal does not solve problems overnight• Farmers still have poor soil, little money, low crop

prices• Some Georgians leave state, hitchhiking or

jumping on trains• U.S. buys Georgia land, builds military facilities,

1939–40• Many American leaders know U.S. is headed for

war in Europe

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3

Seeking a Better Life

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