THE GREAT DEPRESSION 1929-1942 (Text says 1929-1933)

THE GREAT DEPRESSIONTHE GREAT DEPRESSION1929-19421929-1942

(Text says 1929-1933)(Text says 1929-1933)

GETTING US UP TO SPEEDGETTING US UP TO SPEED 1923-1929 PRESIDENT – CALVIN COOLIDGE1923-1929 PRESIDENT – CALVIN COOLIDGE

““KEEP YOUR COOL WITH CAL” – HIS STYLE MATCHED HIS KEEP YOUR COOL WITH CAL” – HIS STYLE MATCHED HIS CONSERVATIVE POLITICS (GOVT. VERY MUCH HANDS OFF)CONSERVATIVE POLITICS (GOVT. VERY MUCH HANDS OFF)

CALVIN COOLIDGE DECIDED NOT TO RUN IN 1928CALVIN COOLIDGE DECIDED NOT TO RUN IN 1928

HERBERT HOOVER BECAME PRESIDENT (DEFEATED ALFRED HERBERT HOOVER BECAME PRESIDENT (DEFEATED ALFRED SMITH)SMITH)

HOOVER – SELF MADE MILLIONAIREHOOVER – SELF MADE MILLIONAIRE

EXPECTATION: “GOOD TIMES WOULD ONLY GET BETTER EXPECTATION: “GOOD TIMES WOULD ONLY GET BETTER UNDER HOOVER” “Poverty will be banished from this UNDER HOOVER” “Poverty will be banished from this nation!”nation!”

Coolidge

HOOVERHOOVER

3131STST PRESIDENT OF THE U.S. (1929-1933) PRESIDENT OF THE U.S. (1929-1933) REPUBLICAN REPUBLICAN VICE PRESIDENT: CHARLES CURTIS VICE PRESIDENT: CHARLES CURTIS (NATIVE (NATIVE

AMERICAN)AMERICAN)

ECONOMIC CONDITIONS ECONOMIC CONDITIONS BEFORE DEPRESSIONBEFORE DEPRESSION

G.N.P. GREW 40%G.N.P. GREW 40%The total market value of all the goods and services produced The total market value of all the goods and services produced by a nation during a specified period.by a nation during a specified period.

UNEMPLOYMENT 3-4%UNEMPLOYMENT 3-4%• April 2009: 8.9% (Nation)April 2009: 8.9% (Nation)• April 2009: 12.9% (Michigan)April 2009: 12.9% (Michigan)

Increase by 5% since 2008Increase by 5% since 2008

VERY LITTLE INFLATIONVERY LITTLE INFLATION

““EVERYONE OUGHT TO BE RICH”EVERYONE OUGHT TO BE RICH”

FARMERS, BLACKS, IMMIGRANTS STRUGGLINGFARMERS, BLACKS, IMMIGRANTS STRUGGLING

STOCK MARKETSTOCK MARKET What is it and How does it work?What is it and How does it work?

• Companies sell a little of their company to investorsCompanies sell a little of their company to investors• Use investor’s money to improve the companyUse investor’s money to improve the company• When the company does well, the investor does wellWhen the company does well, the investor does well

How is it measured?How is it measured?• Dow Jones Industrial Average (1884 Charles Dow)Dow Jones Industrial Average (1884 Charles Dow)

Average of the 30 most widely traded industrial stocks in Average of the 30 most widely traded industrial stocks in the NYSE (known as Blue Chip Stocks)the NYSE (known as Blue Chip Stocks)

• GM, American Express, IBM, EXXON, etcGM, American Express, IBM, EXXON, etc

• Nasdaq (1971)Nasdaq (1971) tracks approx 4,000 stocks electronically (doesn’t have be tracks approx 4,000 stocks electronically (doesn’t have be

a part of the NYSE)a part of the NYSE)• S&P 500: tracks 500 large companiesS&P 500: tracks 500 large companies• Russell 2000: tracks 2000 smaller companiesRussell 2000: tracks 2000 smaller companies

• All of these are just “averages” that represent the entire US All of these are just “averages” that represent the entire US economy and indicates how the rest of the stocks are economy and indicates how the rest of the stocks are performing.performing.

STOCK MARKET CRASHSTOCK MARKET CRASH*BLACK THURSDAY – OCTOBER 24, 1929 (STOCK PRICES FALL, EVERYONE *BLACK THURSDAY – OCTOBER 24, 1929 (STOCK PRICES FALL, EVERYONE

PANICS AND SELLS)PANICS AND SELLS)

*Dow Jones Average: Average stock prices of major industries*Dow Jones Average: Average stock prices of major industries

*TERRIBLE TUESDAY- OCTOBER 29, 1929 (16.4 MILLION SHARES SOLD, NO *TERRIBLE TUESDAY- OCTOBER 29, 1929 (16.4 MILLION SHARES SOLD, NO ONE WANTED TO BUY, THE GREAT CRASH)ONE WANTED TO BUY, THE GREAT CRASH)

*PREDICTED THAT IT WOULD “BOUCE BACK”– JUST A PART OF THE “BUISNESS *PREDICTED THAT IT WOULD “BOUCE BACK”– JUST A PART OF THE “BUISNESS CYCLE”CYCLE”

**BROUGHT ON BY:BROUGHT ON BY:1) 1) SPECULATION:SPECULATION: THE PRACTICE OF MAKING HIGH THE PRACTICE OF MAKING HIGH RISK RISK

INVESTMENTS IN HOPE OF GETTING A HIGH GAININVESTMENTS IN HOPE OF GETTING A HIGH GAIN

2) 2) BUYING ON MARGIN:BUYING ON MARGIN: PURCHASING STOCK FOR PURCHASING STOCK FOR ONLY A ONLY A FRACTION OF ITS PRICE AND BORROWING THE REST (10-50% down, borrow the FRACTION OF ITS PRICE AND BORROWING THE REST (10-50% down, borrow the rest. High interest rate, but could pay back)rest. High interest rate, but could pay back)

***THE STOCK MARKET CRASH DID NOT ***THE STOCK MARKET CRASH DID NOT CAUSECAUSE THE GREAT DEPRESSION, IT THE GREAT DEPRESSION, IT TRIGGERED IT TRIGGERED IT

CAUSES OF THE CAUSES OF THE DEPRESSIONDEPRESSION

SIX MAIN CAUSES THAT LED TO THE SIX MAIN CAUSES THAT LED TO THE DEPRESSIONDEPRESSION

1) AGRICULTURE PROBLEMS1) AGRICULTURE PROBLEMS

FARM PRICES STAYED HIGH DURING THE WAR FARM PRICES STAYED HIGH DURING THE WAR AND JUST AFTERAND JUST AFTER

WARTIME ENDED = PRICES PLUMMETEDWARTIME ENDED = PRICES PLUMMETED

FALLING PRICES = FARMERS UNABLE TO PAY FALLING PRICES = FARMERS UNABLE TO PAY DEBTS FOR LANDDEBTS FOR LAND

UNABLE TO PAY OFF DEBTS = BANKS UNABLE TO PAY OFF DEBTS = BANKS SUFFERED (6000 WENT OUT OF BUSINESS)SUFFERED (6000 WENT OUT OF BUSINESS)

2) HIGH TARIFFS AND WAR 2) HIGH TARIFFS AND WAR DEBTSDEBTS

FOREIGN COUNTRIES COULD NOT FOREIGN COUNTRIES COULD NOT PAY OFF DEBT PAY OFF DEBT

U.S. WOULD NOT LET THEM IMPORT U.S. WOULD NOT LET THEM IMPORT GOODSGOODS

3) GOVERNMENT MONETARY 3) GOVERNMENT MONETARY POLICIESPOLICIES

FEDERAL RESERVE DID NOT KEEP BANKS IN FEDERAL RESERVE DID NOT KEEP BANKS IN BUSINESS BY INCREASING MONEY SUPPLY (RESULT: BUSINESS BY INCREASING MONEY SUPPLY (RESULT: TOO LITTLE MONEY IN CIRCULATION TO HELP THE TOO LITTLE MONEY IN CIRCULATION TO HELP THE ECONOMY RECOVER)ECONOMY RECOVER)

TODAY – THE FEDERAL RESERVE SETS INTEREST TODAY – THE FEDERAL RESERVE SETS INTEREST RATES. BEN BERNANKE is the head of the Federal RATES. BEN BERNANKE is the head of the Federal Reserve.Reserve.

4) 4) OVERPRODUCTION AND OVERPRODUCTION AND CREDIT BUYINGCREDIT BUYING

WAREHOUSES HAD PILES OF UN-BOUGHT GOODS WAREHOUSES HAD PILES OF UN-BOUGHT GOODS IN THE LATE 1920’SIN THE LATE 1920’S

AUTOMOBILE INDUSTRY SLUMPED AFTER 1925 AUTOMOBILE INDUSTRY SLUMPED AFTER 1925 (ANYONE WHO COULD AFFORD A CAR ALREADY (ANYONE WHO COULD AFFORD A CAR ALREADY OWNED ONE)OWNED ONE)

INDUSTRIES THAT RELIED ON AUTOS SLUMPED INDUSTRIES THAT RELIED ON AUTOS SLUMPED (RUBBER, STEEL, GLASS)(RUBBER, STEEL, GLASS)

HOUSING CONSTRUCTION FELL 25% BETWEEN HOUSING CONSTRUCTION FELL 25% BETWEEN 1928-19291928-1929

CONSUMERS BUYING “NEW, EXCITING” GOODS CONSUMERS BUYING “NEW, EXCITING” GOODS WHETHER THEY COULD AFFORD THEM OR NOTWHETHER THEY COULD AFFORD THEM OR NOT

1920 MODEL T 1920 MODEL T

5) 5) FRAIL SYSTEM OF BANKINGFRAIL SYSTEM OF BANKING

BANKS USED DEPOSITORS MONEY BANKS USED DEPOSITORS MONEY UNWISELYUNWISELY

PEOPLE PANICKED AND WITHDREW PEOPLE PANICKED AND WITHDREW THEIR MONEY, BUT BANKS DIDN’T THEIR MONEY, BUT BANKS DIDN’T “HAVE” PEOPLE’S MONEY“HAVE” PEOPLE’S MONEY

RESULT: NO MONEY TO LOANRESULT: NO MONEY TO LOAN

6) 6) THE DOMINO EFFECTTHE DOMINO EFFECT

ONE JOB AFFECTS ANOTHER JOBONE JOB AFFECTS ANOTHER JOB

ONE ECONOMIC FACTOR AFFECTS OTHER ONE ECONOMIC FACTOR AFFECTS OTHER FACTORSFACTORS

1930 – 4 MILLION WITHOUT JOBS1930 – 4 MILLION WITHOUT JOBS

82 BREADLINES IN N.Y. ALONE82 BREADLINES IN N.Y. ALONE

WAS IT HOOVER’S FAULT?WAS IT HOOVER’S FAULT? NO, BUT HIS NAME BECAME A SYMBOL OF THE NO, BUT HIS NAME BECAME A SYMBOL OF THE

DEPRESSIONDEPRESSION

PEOPLE HATED HIMPEOPLE HATED HIM

STREET PEOPLE SLEPT UNDER NEWSPAPERS STREET PEOPLE SLEPT UNDER NEWSPAPERS CALLED “HOOVER BLANKETS”CALLED “HOOVER BLANKETS”

OUT TURNED POCKETS CALLED HOOVER FLAGSOUT TURNED POCKETS CALLED HOOVER FLAGS

HOMELESS – BUILDING SHANTY TOWNS, HOUSES HOMELESS – BUILDING SHANTY TOWNS, HOUSES OUT OF BOXES, KNOWN AS “HOOVERVILLE'S”OUT OF BOXES, KNOWN AS “HOOVERVILLE'S”• Unsafe areasUnsafe areas

HOOVERVILLE'SHOOVERVILLE'S

The Great DepressionThe Great Depression1929-19411929-1941

Distrusting business leaders Distrusting business leaders encouraged people to invest and to encouraged people to invest and to buy on creditbuy on credit

Communist and Socialist Parties Communist and Socialist Parties looked for supportlooked for support

Led to world wide depressionLed to world wide depression• Domino effectDomino effect

ECONOMIC IMPACT OF THE ECONOMIC IMPACT OF THE DEPRESSIONDEPRESSION

SIX MAJOR FACTORSSIX MAJOR FACTORS

1) UNEMPLOYMENT1) UNEMPLOYMENT

20-25% UNEMPLOYMENT RATE20-25% UNEMPLOYMENT RATE April 2009: 8.9% (Nation)April 2009: 8.9% (Nation) April 2009: 12.9% (Michigan)April 2009: 12.9% (Michigan)

• Increase by 5% since 2008Increase by 5% since 2008• 1 OUT OF EVERY 4 PEOPLE WERE 1 OUT OF EVERY 4 PEOPLE WERE

WITHOUT WORKWITHOUT WORK PEOPLE HAD TO USE THEIR PEOPLE HAD TO USE THEIR

SAVINGS TO BUY FOODSAVINGS TO BUY FOOD

2)2) COLLAPSE OF THE BANKING COLLAPSE OF THE BANKING SYSTEMSYSTEM

BANKS WERE POORLY MANAGEDBANKS WERE POORLY MANAGED• Could not return depositor’s moneyCould not return depositor’s money

THEY INVESTED THEIR DEPOSITOR’S THEY INVESTED THEIR DEPOSITOR’S MONEY INCORRECTLYMONEY INCORRECTLY

ONE BANK WOULD FAIL=PEOPLE ONE BANK WOULD FAIL=PEOPLE PANICKEDPANICKED

3) DEFLATION3) DEFLATION

OVERPRODUCTION, LACK OF OVERSEAS OVERPRODUCTION, LACK OF OVERSEAS TRADING, AND THE FACT THAT PEOPLE TRADING, AND THE FACT THAT PEOPLE WERE AT THE END OF THEIR WERE AT THE END OF THEIR BORROWING= LED TO DEFLATIONBORROWING= LED TO DEFLATION

PEOPLE HAD LESS PURCHASING POWERPEOPLE HAD LESS PURCHASING POWER

4. LIFE ON THE DOLE4. LIFE ON THE DOLE

WELFAREWELFARE

NOT HONORABLENOT HONORABLE

ROOSEVELT FELT IT WAS NECESSARY ROOSEVELT FELT IT WAS NECESSARY TO AVOID STARVATIONTO AVOID STARVATION

5. DUST BOWL5. DUST BOWL ENVIRONMENTAL CRISISENVIRONMENTAL CRISIS

GREAT PLAINS – DROUGHT AND DUST STORMS GREAT PLAINS – DROUGHT AND DUST STORMS TOOK PLACE TOOK PLACE

FARMERS SHOULD HAVE KNOWN BETTERFARMERS SHOULD HAVE KNOWN BETTER

PLANT TREES, ROTATE CROPSPLANT TREES, ROTATE CROPS

See pages 388-389See pages 388-389

FARMERS LOST THEIR FARMS BECAUSE THEY FARMERS LOST THEIR FARMS BECAUSE THEY COULD NOT PAY THEIR MORTGAGES.COULD NOT PAY THEIR MORTGAGES.

Dust BowlDust Bowl

DUST BOWLDUST BOWL

6. ROLE OF JOHN MAYNARD 6. ROLE OF JOHN MAYNARD KEYNESKEYNES

KEYNESIAN ECONOMICSKEYNESIAN ECONOMICS – MASSIVE – MASSIVE GOVERNMENT SPENDING HELPS A GOVERNMENT SPENDING HELPS A COLLAPSING ECONOMYCOLLAPSING ECONOMY

GOVERNMENT WAS SPENDING MORE GOVERNMENT WAS SPENDING MORE THAN THEY WERE TAKING INTHAN THEY WERE TAKING IN

DON’T WORRY ABOUT BALANCE AND DON’T WORRY ABOUT BALANCE AND BUDGETBUDGET

John Maynard KeynesJohn Maynard Keynes

Surviving the Great DepressionSurviving the Great Depression

People pulled together—used humorPeople pulled together—used humor 21st Amendment repealed Prohibition (Feb 21st Amendment repealed Prohibition (Feb

1933)1933) Empire State Building constructedEmpire State Building constructed End of an era:End of an era:

• Al Capone caughtAl Capone caught• Babe Ruth retiredBabe Ruth retired• Baby Lindbergh kidnapped and murderedBaby Lindbergh kidnapped and murdered• President Coolidge diedPresident Coolidge died

POLITICAL IMPACT OF THE POLITICAL IMPACT OF THE DEPRESSIONDEPRESSION

**People lost confidence in big business and became fearful; they wanted the government to do something

**Pictures like this one from Dorothea Lange helped families and workers get aid from the government

HERBERT HOOVER VS. HERBERT HOOVER VS. FRANKLIN D. ROOSEVELTFRANKLIN D. ROOSEVELT

ELECTION OF 1932ELECTION OF 1932

DEMOCRATIC NOMINEE: FDRDEMOCRATIC NOMINEE: FDR

““USED TO FACING PROBLEMS CHEERFULLY WITH USED TO FACING PROBLEMS CHEERFULLY WITH DETERMINATION”DETERMINATION”

POLIOPOLIO

ELECTION OF ROOSEVELT CHANGED THE WAY THE ELECTION OF ROOSEVELT CHANGED THE WAY THE GOVERNMENT WAS RUNGOVERNMENT WAS RUN

1932 ELECTION RESULTS1932 ELECTION RESULTS

THE NEW DEALTHE NEW DEAL1932-19391932-1939

ROOSEVELT’S PROGRAM TO COMBAT THE GREAT ROOSEVELT’S PROGRAM TO COMBAT THE GREAT DEPRESSIONDEPRESSION

““THE GOVERNMENT HAD A DUTY TO DO THE GOVERNMENT HAD A DUTY TO DO SOMETHING TO HELP PEOPLE”SOMETHING TO HELP PEOPLE”

Inaugural Address: “The only thing to fear, is fear Inaugural Address: “The only thing to fear, is fear itself!”itself!”

THE THREE R’STHE THREE R’S

THE “NEW DEAL” WAS A PROGRAM OF :THE “NEW DEAL” WAS A PROGRAM OF :1) RELIEF1) RELIEF

** Immediate Help Immediate Help

2) RECOVERY2) RECOVERY* Get back on track* Get back on track

3) REFORM3) REFORM* make sure it does not * make sure it does not happen againhappen again

THE “FIRST HUNDRED DAYS”THE “FIRST HUNDRED DAYS”

MARCH – JUNE 1933= PERIOD MARCH – JUNE 1933= PERIOD KNOWN AS THE FIRST ONE HUNDRED KNOWN AS THE FIRST ONE HUNDRED DAYSDAYS

FDR PUSHED PROGRAM AFTER FDR PUSHED PROGRAM AFTER PROGRAM THROUGH CONGRESS TO PROGRAM THROUGH CONGRESS TO PROVIDE RELIEF, CREATE JOBS, AND PROVIDE RELIEF, CREATE JOBS, AND STIMULATE ECONOMIC RECOVERYSTIMULATE ECONOMIC RECOVERY

THE “BRAIN TRUST”THE “BRAIN TRUST” FDR HAD A BRAIN TRUST OF FDR HAD A BRAIN TRUST OF

PEOPLE IN HIS PEOPLE IN HIS ADMINISTRATION WITH ADMINISTRATION WITH EXPERIENCE IN DEALING WITH EXPERIENCE IN DEALING WITH PROBLEMSPROBLEMS

LAWYERS, SOCIAL WORKERS, LAWYERS, SOCIAL WORKERS, GOVERNORS, PROFESSORS, GOVERNORS, PROFESSORS, INTELLECTUALS, ELEANORINTELLECTUALS, ELEANOR

Eleanor Roosevelt served as Eleanor Roosevelt served as FDR’s legs as she reported FDR’s legs as she reported conditions around the countryconditions around the country

FIRESIDE CHATSFIRESIDE CHATS

FDR USED THE RADIO TO DELIVER FDR USED THE RADIO TO DELIVER HIS MESSAGEHIS MESSAGE

PURPOSE: CALM PEOPLE DOWN AND PURPOSE: CALM PEOPLE DOWN AND RESTORE CONFIDENCE IN THE RESTORE CONFIDENCE IN THE FUTUREFUTURE

BANK HOLIDAYBANK HOLIDAY MARCH 5, 1933 – FDR ORDERED ALL MARCH 5, 1933 – FDR ORDERED ALL

BANKS TO CLOSE FOR 4 DAYSBANKS TO CLOSE FOR 4 DAYS

PASSED THE EMERGENCY BANKING ACT – PASSED THE EMERGENCY BANKING ACT – AUTHORIZED THE GOVERNMENT TO AUTHORIZED THE GOVERNMENT TO INSPECT THE FINANCIAL HEALTH OF ALL INSPECT THE FINANCIAL HEALTH OF ALL BANKSBANKS

RESTORED CONFIDENCE IN THE BANKING RESTORED CONFIDENCE IN THE BANKING SYSTEMSYSTEM

ALPHABET AGENCIESALPHABET AGENCIES

FDR STARTED DIFFERENT PROGRAMS FDR STARTED DIFFERENT PROGRAMS TO HELP STIMULATE THE ECONOMYTO HELP STIMULATE THE ECONOMY

““PUMP PRIMING”PUMP PRIMING”

ALPHABET AGENCIESALPHABET AGENCIES FERA- FEDERAL EMERGENCY RELIEF FERA- FEDERAL EMERGENCY RELIEF

ADMINISTRATIONADMINISTRATION

HARRY HOPKINS DIRECTOR OF THIS HARRY HOPKINS DIRECTOR OF THIS AGENCYAGENCY

GAVE OUT MONEY TO PEOPLE IN NEED GAVE OUT MONEY TO PEOPLE IN NEED THROUGH LOCAL RELIEF AGENCIES (BUY THROUGH LOCAL RELIEF AGENCIES (BUY CLOTHES, FOOD) CLOTHES, FOOD)

WITHIN 2 HOURS = GAVE OUT $5 MILLIONWITHIN 2 HOURS = GAVE OUT $5 MILLION


CCC- CIVILIAN CONSERVATION CORPSCCC- CIVILIAN CONSERVATION CORPS

*Provided jobs to young, unmarried *Provided jobs to young, unmarried men, (and later women) to work on men, (and later women) to work on conservation and resource development conservation and resource development projectsprojects

*Paid $30 month*Paid $30 month


WPA- WORKS PROGRESS ADMINISTRATIONWPA- WORKS PROGRESS ADMINISTRATION

*Gave the unemployed work in building *Gave the unemployed work in building construction and arts programsconstruction and arts programs


CWA – CIVIL WORKS ADMINISTRATIONCWA – CIVIL WORKS ADMINISTRATION

* Employed people with federal payroll* Employed people with federal payroll

* Rake leaves, repaired roads, * Rake leaves, repaired roads, improved improved schools schools

**Critics: Jobs were meaningless and **Critics: Jobs were meaningless and unpopularunpopular


SSA- SOCIAL SECURITY ACTSSA- SOCIAL SECURITY ACT

*Gives money to people who are *Gives money to people who are too old to work or those with too old to work or those with disabilitiesdisabilities


AAA- AGRICULTURE ADJUSTMENT ACTAAA- AGRICULTURE ADJUSTMENT ACT

*Attempted to raise farm prices by *Attempted to raise farm prices by paying farmers to lower farm outputpaying farmers to lower farm output

*Supply/Demand*Supply/Demand


TVA – TENNESSEE VALLEY AUTHORITYTVA – TENNESSEE VALLEY AUTHORITY

*Most successful *Most successful

*Helped farmers and created jobs in *Helped farmers and created jobs in one of the countries least developed one of the countries least developed regionregion

*Dams provided cheap electricity, *Dams provided cheap electricity, flood controlflood control


NRA-NATIONAL RECOVERY ADMINISTRATIONNRA-NATIONAL RECOVERY ADMINISTRATION

*Established minimum wage, maximum *Established minimum wage, maximum working hours, child labor lawsworking hours, child labor laws

The 2The 2ndnd New Deal New Deal

First new deal faltered due to First new deal faltered due to criticism and inadequate recoverycriticism and inadequate recovery

22ndnd New Deal provided New Deal provided• More relief programsMore relief programs• Stricter controls over businessStricter controls over business• Stronger support for UnionsStronger support for Unions• Higher taxes on the richHigher taxes on the rich

The 2The 2ndnd New Deal New Deal

Helped migrant farmersHelped migrant farmers Social Security establishedSocial Security established

• ElderlyElderly• Unemployment insuranceUnemployment insurance• Aid for dependant children, the blind Aid for dependant children, the blind

and physically disabledand physically disabled FDR won the 1936 election in a FDR won the 1936 election in a

landslidelandslide

CriticsCritics

Shortcomings of the New DealShortcomings of the New Deal• Minimum wage was low--.25/hourMinimum wage was low--.25/hour• Women and minorities not fairly represented--Women and minorities not fairly represented--

discriminationdiscrimination• Republicans thought it went to far Republicans thought it went to far • Many thought the New Deal did not do enoughMany thought the New Deal did not do enough

Demagogues: those who spoke out against the Demagogues: those who spoke out against the New Deal through manipulationNew Deal through manipulation

COURT PACKING PLANCOURT PACKING PLAN FDR – WANTED TO INCREASE THE # OF SUPREME FDR – WANTED TO INCREASE THE # OF SUPREME

COURT JUSTICES FROM 9 TO 15COURT JUSTICES FROM 9 TO 15

FDR WANTED TO PACK THE COURT WITH JUDGES FDR WANTED TO PACK THE COURT WITH JUDGES WHO FAVORED THE NEW DEALWHO FAVORED THE NEW DEAL

FDR WAS FORCED TO WITHDRAW THIS BILLFDR WAS FORCED TO WITHDRAW THIS BILL

HE DID WIND UP WITH A COURT THAT TENDED HE DID WIND UP WITH A COURT THAT TENDED TO SIDE WITH HIMTO SIDE WITH HIM

IMPACT OF THE NEW DEALIMPACT OF THE NEW DEAL

A) IT DID NOT END THE DEPRESSIONA) IT DID NOT END THE DEPRESSION

* Conservatives and radicals * Conservatives and radicals criticized criticized Roosevelt for either going too Roosevelt for either going too far or far or not far enoughnot far enough


B) CREATED WELFAREB) CREATED WELFARE

* NOT HONORABLE BACK THEN* NOT HONORABLE BACK THEN


C) INCREASED FEDERAL BUREAUCRACYC) INCREASED FEDERAL BUREAUCRACY

*Programs and agencies developed*Programs and agencies developed

*Start of government taking care of *Start of government taking care of people’s problemspeople’s problems


D) PEOPLE BEGAN TO EXPECT MORE D) PEOPLE BEGAN TO EXPECT MORE FROM THE GOVERNMENTFROM THE GOVERNMENT

Cultural Effects of the New DealCultural Effects of the New Deal

FDR supported the artsFDR supported the arts LiteratureLiterature

• Grapes of Wrath—John Steinbeck (1939)Grapes of Wrath—John Steinbeck (1939)• The Good Earth—Pearl Buck (1931)The Good Earth—Pearl Buck (1931)

Radio and MoviesRadio and Movies• Wizard of Oz—1939Wizard of Oz—1939• Walt DisneyWalt Disney• Soap Operas –15 minute radio broadcastSoap Operas –15 minute radio broadcast

Provided escape for a weary American publicProvided escape for a weary American public

Final End to DepressionFinal End to Depression

America joining and preparing for: America joining and preparing for:

WWIIWWII

Documents

THE GREAT DEPRESSION 1929-1942 (Text says 1929-1933)