U.S. History Chapter U.S. History Chapter 11 Notes 11 Notes The Great The Great

Depression BeginsDepression BeginsAn economic crisis grips the nation An economic crisis grips the nation

during the Great Depression. President during the Great Depression. President Herbert Hoover’s conservative Herbert Hoover’s conservative

response to the nation’s problems costs response to the nation’s problems costs him many supporters.him many supporters.

Section 1Section 1The Nation’s The Nation’s Sick EconomySick EconomyAs the prosperity of the As the prosperity of the

1920s ends, severe economic 1920s ends, severe economic problems grip the nation.problems grip the nation.

Economic Troubles on the Economic Troubles on the HorizonHorizon

Problems began threatening economic prosperity Problems began threatening economic prosperity by the end of the 1920s by the end of the 1920s

Farm debtFarm debt - many farmers were forced to sell in - many farmers were forced to sell in the 1920'sthe 1920's

Consumer debtConsumer debt - many people were buying goods - many people were buying goods on crediton credit

More goods then buyers - prices rose faster than More goods then buyers - prices rose faster than wageswages

Declining TradeDeclining Trade - 1920's U.S. raised tariffs other - 1920's U.S. raised tariffs other countries raised tariffs to retaliatecountries raised tariffs to retaliate

Important industries struggledImportant industries struggled Income disparity Income disparity - - Consumers & farmers went Consumers & farmers went

steadily deeper into debt steadily deeper into debt

Industries in TroubleIndustries in Trouble Key industries like railroads, textiles, steel barely Key industries like railroads, textiles, steel barely

made profitmade profit Replaced by other forms of transportations Replaced by other forms of transportations Mining, lumbering expanded during were no Mining, lumbering expanded during were no

longer in high demandlonger in high demand Coal especially hard-hit due to availability of new Coal especially hard-hit due to availability of new

energy sourcesenergy sources- Hydroelectricity, fuel oil, & natural gas - Hydroelectricity, fuel oil, & natural gas

Boom industriesBoom industries - automobiles, construction, - automobiles, construction, consumer goods weakened consumer goods weakened

Housing startsHousing starts declined declined - Affected many related industries - Affected many related industries

Farm TroublesFarm Troubles International demand for U.S. grain declined after International demand for U.S. grain declined after

warwar- prices dropped by 40% or more- prices dropped by 40% or more

Farmers boosted production to sell more Farmers boosted production to sell more - Caused prices to drop further- Caused prices to drop further

Farm income declined & farmers defaulted on loans Farm income declined & farmers defaulted on loans Rural banks failedRural banks failed Congress attempted to pass the Congress attempted to pass the McNary- HaugenMcNary- Haugen

bill to help farmersbill to help farmers- Price-supports- Price-supports - government bought surplus - government bought surplus crops at guarantees pricescrops at guarantees prices- President Coolidge vetoed price-support bill - President Coolidge vetoed price-support bill

Consumers ProblemsConsumers Problems 1920s - rich got richer & poor got poorer1920s - rich got richer & poor got poorer Prices rose faster that wages Prices rose faster that wages 70% of families earned less than minimum for 70% of families earned less than minimum for

decent standard of living decent standard of living - $2500 annually- $2500 annually

Most couldn’t afford flood of products factories Most couldn’t afford flood of products factories produceproduce

Many people had been purchasing goods on Many people had been purchasing goods on creditcredit (buy now, pay later)(buy now, pay later)

Businesses gave easy credit & consumers piled up Businesses gave easy credit & consumers piled up large debtslarge debts

Consumers had trouble paying off debt & cut back Consumers had trouble paying off debt & cut back on spendingon spending

OBJ #1 - Describe the OBJ #1 - Describe the CAUSESCAUSES and and SPARKSPARK of the Great Depression. of the Great Depression. How did How did OverproductionOverproduction affect both farmers and industry? What system collapsed affect both farmers and industry? What system collapsed and caused millions to lose their savings? Explain how buying on Margin and caused millions to lose their savings? Explain how buying on Margin created the Spark. How did people lose money because of the spark?created the Spark. How did people lose money because of the spark?

I. OBJ #1- I. OBJ #1- Cause & SparkCause & Spark of the Depression of the Depression A. Causes of the DepressionA. Causes of the Depression

1. Overproduction1. Overproduction, too much stuff (Factories and Farms), too much stuff (Factories and Farms)a. Factory Workers begin to get layed-offa. Factory Workers begin to get layed-off - Workers cannot buy goods, even more goods are - Workers cannot buy goods, even more goods are

overproducedoverproducedb. Farmersb. Farmers Can’t SurviveCan’t Survive -low prices (can’t pay loans / make a living)-low prices (can’t pay loans / make a living)c. Supply & Demand- Prices Dropc. Supply & Demand- Prices Drop

2. 2. Bank FailuresBank Failures a. Banks close and loose $$$a. Banks close and loose $$$

b. People b. People defaultdefault on loans (Can’t pay Back) on loans (Can’t pay Back) c. Banks cannot cover their deposits, because it was c. Banks cannot cover their deposits, because it was

lent out to lent out to bad creditors ** bad creditors **5,000 banks 5,000 banks close between 1929-1932close between 1929-1932****

d. d. People loose entire LIFE SAVINGSPeople loose entire LIFE SAVINGS

1920’s 1920’s ProblemProblem

ss

Factories making Too Much, Farms growing too much

Factories Fire Workers (Don’t need them)

Farm Prices fall (Farmers can’t make $$)

Farmers & Factory Workers can’t pay back loans to

Banks: DEFAULT!!

Banks Close because they have no money: Loans have not been paid back, can’t give people their savings

BANKS Have NO $$

PEOPLE LOST SAVINGS & JOBS

NO ONE TO HELP!

=+People Default on Loans

Banks have no money to give people

Banks Close

People Loose savings

The Election of 1928The Election of 1928 Democrat Democrat Alfred E. Alfred E.

SmithSmith - four times - four times governor of New Yorkgovernor of New York

Republican Republican Herbert Herbert HooverHoover has served as has served as secretary of commerce secretary of commerce under Warren Harding under Warren Harding & Calvin Coolidge & Calvin Coolidge

U.S. had experienced U.S. had experienced prosperity under prosperity under Republicans in 1920s Republicans in 1920s

Hoover won an Hoover won an overwhelming victoryoverwhelming victory

Dreams of Riches in the Stock Dreams of Riches in the Stock MarketMarket

Late 1920s – Some economist warning of Late 1920s – Some economist warning of weaknesses in the economy weaknesses in the economy - Most Americans ignored them - Most Americans ignored them

People began investing in stock marketPeople began investing in stock market- Looked like an easy way to make money- Looked like an easy way to make money

Dow Jones Industrial Average Dow Jones Industrial Average was used was used as barometer of the market’s healthas barometer of the market’s health - Measure based on the stock of 30 - Measure based on the stock of 30 representative large firms trading on the representative large firms trading on the New York Stock exchange tracks state of New York Stock exchange tracks state of stock marketstock market

Dreams of Riches in the Stock Dreams of Riches in the Stock MarketMarket

1920s - stock prices 1920s - stock prices rose steadily “Bull rose steadily “Bull Market”Market”

People rushed to buy People rushed to buy stocks & bonds to make stocks & bonds to make a quick profita quick profit

- Many engaged in - Many engaged in speculationspeculation - buy on - buy on chance of a quick profitchance of a quick profit

- Began- Began Buying on Buying on marginmargin - pay small - pay small percent of price, borrow percent of price, borrow rest rest

The Stock Market CrashesThe Stock Market Crashes

September 1929 September 1929 stock prices peaked stock prices peaked & then fell& then fell

Many investors lost Many investors lost confidence & began confidence & began selling selling

October 24, 1929 - October 24, 1929 - Market took plunge Market took plunge & many panicked & many panicked investors unloaded investors unloaded their shares their shares

The Stock Market CrashesThe Stock Market Crashes October 29, 1929October 29, 1929 - -

Stock market crashed Stock market crashed ((Black TuesdayBlack Tuesday))

- Shareholders sold - Shareholders sold franticallyfrantically

- Millions of shares - Millions of shares had no buyershad no buyers

- People who bought - People who bought on credit were left on credit were left with huge debtswith huge debts

- Others lose most of - Others lose most of their savingstheir savings

OBJ #1- Cause & Sparks of DepressionOBJ #1- Cause & Sparks of Depression

QUICK REVIEW:QUICK REVIEW:

Causes: 1. OverproductionCauses: 1. Overproduction 2. Bank Closings2. Bank Closings

Spark: 1. Stock Market CrashSpark: 1. Stock Market Crash

Results: 1. UnemploymentResults: 1. Unemployment 2. Life Savings Lost2. Life Savings Lost

Financial CollapseFinancial Collapse Great DepressionGreat Depression - economy plummeted & - economy plummeted &

unemployment skyrocketedunemployment skyrocketed- lasted from 1929–1940- lasted from 1929–1940

After crash, people panicked & withdraw money After crash, people panicked & withdraw money from banksfrom banks

Banks that invested in stocks failed& people lost Banks that invested in stocks failed& people lost their moneytheir money

1929 to1932 - 1929 to1932 - gross national productgross national product was cut was cut nearly in halfnearly in half- 90,000 businesses went bankrupt- 90,000 businesses went bankrupt

1933 - 1933 - 25%25% of workers were unemployed of workers were unemployed Those with jobs received cuts in hours & payThose with jobs received cuts in hours & pay

Worldwide Shock WavesWorldwide Shock Waves

Great Depression limited U.S. ability to Great Depression limited U.S. ability to import European goodsimport European goods

Hawley-Smoot Tariff ActHawley-Smoot Tariff Act set highest set highest protective tariff ever in U.S.protective tariff ever in U.S.

Other countries couldn’t earn American Other countries couldn’t earn American currency to buy U.S. goodscurrency to buy U.S. goods

- Many countries retaliated by raising - Many countries retaliated by raising their own tariffs their own tariffs

International trade dropped & International trade dropped & unemployment soared around worldunemployment soared around world

Causes of the Great Causes of the Great DepressionDepression

Factors leading to Great Depression:Factors leading to Great Depression: Declining TradeDeclining Trade - Tariffs & war debts cut - Tariffs & war debts cut

down the foreign markets for American goods down the foreign markets for American goods Farm problemsFarm problems - Many farmers were forced - Many farmers were forced

to sell to sell Easy creditEasy credit – Borrowed money to invest in – Borrowed money to invest in

marketmarket Income disparity Income disparity Federal government kept interest rates low & Federal government kept interest rates low &

encouraged borrowingencouraged borrowing

Section 2Section 2Hardship and Hardship and

Suffering Suffering During the During the DepressionDepressionDuring the Great Depression During the Great Depression

Americans do what they have Americans do what they have to do to survive.to do to survive.

The Depression Devastates The Depression Devastates People’s LivesPeople’s Lives

People lost jobs & People lost jobs & were evicted from were evicted from homeshomes

Had to live in parks Had to live in parks or sewer pipes or sewer pipes

ShantytownsShantytowns - - settlements settlements consisting of consisting of shacks, arose in shacks, arose in citiescities

The Depression Devastates The Depression Devastates People’s LivesPeople’s Lives

People dug through People dug through garbage & begged garbage & begged - Soup kitchens- Soup kitchens offered offered free or low-cost foodfree or low-cost food- Bread lines- Bread lines - people - people lined up for food from lined up for food from charities & public charities & public agenciesagencies

African Americans & African Americans & Latinos had higher Latinos had higher unemployment & lower unemployment & lower paypay

Minorities were also Minorities were also targets of violence targets of violence (Lynching or (Lynching or deportation)deportation)

The Depression in Rural The Depression in Rural AreasAreas

Most farmers could Most farmers could grow food for their grow food for their familiesfamilies

About 400,000 farms About 400,000 farms were lost through were lost through foreclosureforeclosure

- Many became tenant - Many became tenant farmers: worked for farmers: worked for large large

landowners rather landowners rather than than

themselvesthemselves

The Dust BowlThe Dust Bowl

Farmers in Great Farmers in Great Plains exhausted Plains exhausted land through land through overproductionoverproduction

1930s - drought & 1930s - drought & windstorms scattered windstorms scattered for hundreds of milesfor hundreds of miles

Dust BowlDust Bowl - area - area from North Dakota to from North Dakota to Texas that was Texas that was hardest hit hardest hit

The Dust BowlThe Dust Bowl

Many farm families Many farm families migrated to Pacific migrated to Pacific Coast states Coast states ((Route 66Route 66))

- California towns - California towns became became overcrowdedovercrowded

- Many people who - Many people who moved west were moved west were from Oklahoma from Oklahoma (Okies)(Okies)

OBJ #3OBJ #3 - Describe the natural disaster that affected the U.S. - Describe the natural disaster that affected the U.S. during the Great Depression. during the Great Depression. What was the disaster’s nick-What was the disaster’s nick-name? What caused the disaster? Where did the people go name? What caused the disaster? Where did the people go to try and escape their troubles and how were they treated to try and escape their troubles and how were they treated (nick-names for these people)?(nick-names for these people)?III. OBJ. #3- Natural Disaster “The DUST BOWL” III. OBJ. #3- Natural Disaster “The DUST BOWL”

A. Great Plains suffers a huge Drought (1931)A. Great Plains suffers a huge Drought (1931)1. Causes:1. Causes: a. Drought . . .no raina. Drought . . .no rain

b. b. New technologyNew technology, tractors and steel plows tear-, tractors and steel plows tear-up extraup extra sod that sod that was holding onto soil, drought was holding onto soil, drought turns open soil into sand boxturns open soil into sand box

2. Huge Dust storms cover ‘Great Plains2. Huge Dust storms cover ‘Great PlainsB. ResultsB. Results

1. Can’t pay banks- Banks take Farms1. Can’t pay banks- Banks take Farms2. Many Great Plains farmers move to California2. Many Great Plains farmers move to California, , a. Try to get jobs on large farmsa. Try to get jobs on large farms b. Treated poorly in Calif. - b. Treated poorly in Calif. -

*‘*‘OakiesOakies’ & ‘’ & ‘ArkiesArkies’-Not wanted in West’-Not wanted in West

Effects on the American Effects on the American FamilyFamily

Family was source of Family was source of strength for most strength for most AmericansAmericans

Believed in traditional Believed in traditional values and emphasized values and emphasized the importance of family the importance of family unityunity

Many families Many families entertained themselves entertained themselves with board games & with board games & radio radio - - MonopolyMonopoly was was invented in 1933 invented in 1933

Some families broke Some families broke apart under strain of apart under strain of making ends meetmaking ends meet

Men in the StreetsMen in the Streets Many men used to Many men used to

working & supporting working & supporting families had difficulty families had difficulty copingcoping Couldn’t find jobsCouldn’t find jobs Many stopped trying Many stopped trying

Some men even Some men even abandoned their abandoned their families families - About 300,000- About 300,000 hoboes hoboes wandered country on wandered country on railroad box carsrailroad box cars

No federal system of No federal system of direct reliefdirect relief - cash or - cash or food from governmentfood from government

Women Struggle to SurviveWomen Struggle to Survive

Women worked hard Women worked hard to help their families to help their families survive the adversitysurvive the adversity

Homemakers Homemakers budgeted carefully, budgeted carefully, canned food, & canned food, & sewed clothessewed clothes

Women worked Women worked outside home & were outside home & were resented by resented by unemployed menunemployed men

Women Struggle to SurviveWomen Struggle to Survive

Early 1930s – Early 1930s – Some cities Some cities refused to hire refused to hire married married schoolteachers schoolteachers

Many women Many women suffered in silence suffered in silence & were ashamed to & were ashamed to stand in bread stand in bread lineslines

Children Suffer HardshipsChildren Suffer Hardships Poor diets & health Poor diets & health

care led to serious care led to serious health problems in health problems in childrenchildren

Lack of tax revenue Lack of tax revenue led to shortened school led to shortened school year & school closingsyear & school closings

Teenagers left home & Teenagers left home & rode trains in search of rode trains in search of work & adventurework & adventure

- Many died or were - Many died or were beaten beaten

Social and Psychological Social and Psychological EffectsEffects

1928 to 1932 – 1928 to 1932 – suicide ratesuicide rate rose over 30% rose over 30% Admissions to state mental hospitals tripledAdmissions to state mental hospitals tripled People gave up health care, collegePeople gave up health care, college Put off marriage & childrenPut off marriage & children Stigma of poverty didn’t disappear & Stigma of poverty didn’t disappear &

financial security became goalfinancial security became goal Many people showed great kindness to Many people showed great kindness to

strangers strangers - Gave food, clothing & a place to stay - Gave food, clothing & a place to stay

People developed habit of saving and People developed habit of saving and thriftinessthriftiness

Section 3Section 3Hoover Struggles Hoover Struggles

with with the Depressionthe Depression

President Hoover’s conservative President Hoover’s conservative response to response to

the Great Depression draws the Great Depression draws criticism from many Americans.criticism from many Americans.

Hoover Tries to Reassure the Hoover Tries to Reassure the NationNation

President President Herbert Herbert HooverHoover told Americans told Americans the economy was soundthe economy was sound

Many experts believed Many experts believed depressions were depressions were normal part of business normal part of business cyclecycle- Believed that it was - Believed that it was best to do nothing & let best to do nothing & let the economy fix itself the economy fix itself

Hoover believed Hoover believed government should government should foster cooperation foster cooperation between competing between competing groupsgroups

Hoover Tries to Reassure Hoover Tries to Reassure the Nationthe Nation

Many believed that people should succeed Many believed that people should succeed through their own efforts through their own efforts

People should take care of own families & People should take care of own families & not depend on governmentnot depend on government

Hoover opposed any form of federal Hoover opposed any form of federal welfare or direct relief to the needywelfare or direct relief to the needy- Believed that hand-outs would weaken - Believed that hand-outs would weaken people’s self respect & moral fiberpeople’s self respect & moral fiber- Said that charities & local organizations - Said that charities & local organizations should help the less fortunate should help the less fortunate

Hoover Takes Cautious Hoover Takes Cautious StepsSteps

Hoover called meeting of business, Hoover called meeting of business, banking, labor leaders to solve banking, labor leaders to solve problemsproblems

- Asked them to work to together to - Asked them to work to together to solve the problems solve the problems

Created organization to help private Created organization to help private charities raise money for poorcharities raise money for poor

Hoover Takes Cautious Hoover Takes Cautious StepsSteps

Hoover’s authorized Hoover’s authorized the construction of the construction of the the Boulder DamBoulder Dam on Colorado River won Colorado River w

- later renamed - later renamed Hoover DamHoover Dam

- Provided - Provided electricity, flood electricity, flood control, water to control, water to states on river basinstates on river basin

Democrats Win in 1930 Democrats Win in 1930 Congressional ElectionsCongressional Elections

People began blaming Hoover & People began blaming Hoover & Republicans for the economic Republicans for the economic problems problems

Democrats won House of Democrats won House of Representatives Representatives

Republican Senate majority down to Republican Senate majority down to 1 vote1 vote

People Grew frustrated with the People Grew frustrated with the Depression Depression

Democrats Win in 1930 Democrats Win in 1930 Congressional ElectionsCongressional Elections

Farmers tried to Farmers tried to create food shortages create food shortages to raise pricesto raise prices Burned fields rather Burned fields rather

than sell crops at a than sell crops at a loss loss

Some declared a farm Some declared a farm holidayholiday

People began calling People began calling shantytowns shantytowns “Hoovervilles”“Hoovervilles”

Hoover Takes ActionHoover Takes Action Hoover softened his Hoover softened his

stance on no stance on no government intervention government intervention in the economy in the economy

Hoover negotiates Hoover negotiates agreements among agreements among private entitiesprivate entities

Backs Backs Federal Farm Federal Farm BoardBoard (organization of (organization of farm cooperatives)farm cooperatives)

- buy crops, keep off - buy crops, keep off market until prices risemarket until prices rise

Hoover Takes ActionHoover Takes Action

Got large banks to establish Got large banks to establish National National Credit CorporationCredit Corporation

- Loaned money to smaller banks to - Loaned money to smaller banks to prevent bankruptcyprevent bankruptcy

Late 1931 - Hoover persuaded Congress Late 1931 - Hoover persuaded Congress to pass measures reform banking, provide to pass measures reform banking, provide mortgage relief, & funnel federal money mortgage relief, & funnel federal money into business investmentinto business investment

- Federal Home Loan Bank Act- Federal Home Loan Bank Act lowered lowered mortgage ratesmortgage rates

Hoover Takes ActionHoover Takes Action

Reconstruction Finance Reconstruction Finance CorporationCorporation – Authorized emergency – Authorized emergency funds for businesses funds for businesses - Hoover believed that the money - Hoover believed that the money would trickle down to average citizens would trickle down to average citizens through job growth & higher wages through job growth & higher wages - Critics said people couldn’t wait for - Critics said people couldn’t wait for the money to trickle down the money to trickle down

Hoover’s measures didn’t improve Hoover’s measures didn’t improve economy before presidential electioneconomy before presidential election

Gassing the Bonus ArmyGassing the Bonus Army 1932 – Incident with 1932 – Incident with

World War I veterans World War I veterans further damaged further damaged Hoover’s image & Hoover’s image & public moralepublic morale

1924 – Congress 1924 – Congress agreed to pay a bonus agreed to pay a bonus to WWI vets who had to WWI vets who had not been adequately not been adequately compensated for compensated for wartime servicewartime service- Bonus was to be paid - Bonus was to be paid in 1945 in the form of in 1945 in the form of cash & a life cash & a life insurance policyinsurance policy

Gassing the Bonus ArmyGassing the Bonus Army Bonus ArmyBonus Army – –

WWI veterans WWI veterans went to D.C. in went to D.C. in 1932 to support 1932 to support Patman Bill:Patman Bill:- called for - called for immediate immediate payment of payment of bonus to WWI bonus to WWI vets vets ($500 ($500 per soldier) per soldier)

Gassing the Bonus ArmyGassing the Bonus Army Hoover opposed billHoover opposed bill Believed they were Believed they were

communistscommunists He respected their right He respected their right

to protest (Provided to protest (Provided food & supplies for food & supplies for shantytown) shantytown)

June 17, 1932 - Senate June 17, 1932 - Senate voted down voted down Patman Patman BillBill

Most veterans left Most veterans left WashingtonWashington

About 2,000 stayed to About 2,000 stayed to speak to Hooverspeak to Hoover

Gassing the Bonus ArmyGassing the Bonus Army

Hoover feared Hoover feared violence & called violence & called on U.S. Army to on U.S. Army to disband Bonus disband Bonus ArmyArmy

- Led by - Led by General General Douglass Douglass MacarthurMacarthur & & Major Dwight Major Dwight EisenhowerEisenhower

Gassing the Bonus ArmyGassing the Bonus Army

Infantry tear gassed Infantry tear gassed over 1,000 people, over 1,000 people, including childrenincluding children

Many people were Many people were injured (11 month injured (11 month old baby died)old baby died)

Public was stunned Public was stunned & outraged by & outraged by government’s government’s actionsactions

OBJ #2 -OBJ #2 -Describe how the Great Depression affected people. Describe how the Great Depression affected people. Who was Who was the president when it started, and what did he do to help? Who the president when it started, and what did he do to help? Who tried to help the poor and what problems did they have? How did tried to help the poor and what problems did they have? How did people try to escape the Great Depression?people try to escape the Great Depression?II. OBJ. #2 – Affects of the Depression II. OBJ. #2 – Affects of the Depression

A. Jobless / HomelessA. Jobless / Homeless1. 1930-1932 – Jobless goes from 4 to 12 million1. 1930-1932 – Jobless goes from 4 to 12 million2. Houses are lost, people become homeless2. Houses are lost, people become homeless3. People are 3. People are Desperate!!!!Desperate!!!!

B. B. Hatred for President HooverHatred for President Hoover1. Say’s it is NOT Government’s job to fix the Poor1. Say’s it is NOT Government’s job to fix the Poor

a. Say Churches and other groups should helpa. Say Churches and other groups should helpb. PROBLEM: People too poor to help churches b. PROBLEM: People too poor to help churches

so churches so churches can’t help as much!!! can’t help as much!!!2. People name Poor Places after Hoover 2. People name Poor Places after Hoover

a.a.*Hooverville- Shanty towns / Hoovermobile- cars *Hooverville- Shanty towns / Hoovermobile- cars pulled by mulespulled by mules

b. HOBOSb. HOBOS- look for jobs*Hooverblankets- - look for jobs*Hooverblankets- newspapers used as newspapers used as traveling the rails traveling the rails blankets by blankets by homelesshomeless

OBJ #2- Affects of the Great DepressionOBJ #2- Affects of the Great Depression

C.C. Escaping the DepressionEscaping the Depression

1. Radio- 1. Radio- Comedies, Soap OperasComedies, Soap Operas

2. Movies-2. Movies- Shirley Temple, Child Actors Shirley Temple, Child Actors

a. Snow White (first full-length animation) a. Snow White (first full-length animation)

b. Wizard of OZb. Wizard of OZ

*Small girl escaping the Dust Bowl*Small girl escaping the Dust Bowl

3. 3. LiteratureLiterature

a. Steinbeck, a. Steinbeck, Grapes of WrathGrapes of Wrath

*About a family of ‘Okies’ escaping the Dust Bowl *About a family of ‘Okies’ escaping the Dust Bowl and how and how horribly they were treated horribly they were treated

Wizard

of

OZ

U.S. History Chapter U.S. History Chapter 13 Notes13 Notes

The New DealThe New DealPresident Franklin D. Roosevelt’s New President Franklin D. Roosevelt’s New Deal programs stimulate the economy Deal programs stimulate the economy and the arts. The New Deal leaves a and the arts. The New Deal leaves a lasting, yet controversial mark on lasting, yet controversial mark on

American government.American government.

Section 1Section 1A New Deal Fights A New Deal Fights

the Depressionthe DepressionAfter becoming president, After becoming president,

Franklin Delano Roosevelt uses Franklin Delano Roosevelt uses government programs to combat government programs to combat

the Depression.the Depression.

Election of 1932Election of 1932 Democrats Democrats

nominated NY nominated NY governorgovernor Franklin Franklin Delano Roosevelt Delano Roosevelt - reform-minded;- reform-minded;

projected projected friendliness & friendliness & confidenceconfidence

Democrats Democrats overwhelmingly overwhelmingly won presidency, won presidency, Senate, & HouseSenate, & House

Election of 1932Election of 1932 Roosevelt had to wait 4 Roosevelt had to wait 4

months to take over months to take over 20th Amendment wasn’t 20th Amendment wasn’t

rarified until 1933 (Move rarified until 1933 (Move inauguration to January) inauguration to January)

FDR worked with advisors FDR worked with advisors known as known as “Brain Trust,”“Brain Trust,” to to formulate policies to formulate policies to alleviate problemsalleviate problems

New DealNew Deal – FDR’s program – FDR’s program to alleviate the problems of to alleviate the problems of the Great Depression the Great Depression focused on 3 Rsfocused on 3 Rs ReliefRelief for needy for needy Economic Economic recovery recovery Financial Financial reformreform

The Hundred DaysThe Hundred Days

March 9 to June 16, March 9 to June 16, 1933 - FDR took 1933 - FDR took office & launched office & launched Hundred DaysHundred Days

Congress passed Congress passed over 15 major New over 15 major New Deal laws that Deal laws that expanded the federal expanded the federal government’s role in government’s role in the nation’s the nation’s economy economy

Bank HolidayBank Holiday March 5, 1933 – one day after taking office March 5, 1933 – one day after taking office

FDR declared a bank holiday & closed all FDR declared a bank holiday & closed all banks to prevent further withdrawals banks to prevent further withdrawals

Emergency Banking Relief ActEmergency Banking Relief Act - - Permitted Treasury Dept. to inspect banksPermitted Treasury Dept. to inspect banks Sound banks were allowed to reopen Sound banks were allowed to reopen Banks that needed help received loans Banks that needed help received loans Insolvent ones remained closed (unable to pay Insolvent ones remained closed (unable to pay

bills) bills) Bank HolidayBank Holiday revived public confidence in revived public confidence in

banks banks - Believed that the banks remained open - Believed that the banks remained open

were in good shape were in good shape

An Important Fireside ChatAn Important Fireside Chat FDR gave FDR gave fireside fireside

chatschats - radio talks - radio talks explaining New Deal explaining New Deal measuresmeasures

March 12, 1933 – March 12, 1933 – FDR gave 1FDR gave 1stst fireside fireside chat the day before chat the day before the banks reopened the banks reopened after holidayafter holiday

- Discussed need for - Discussed need for public support of public support of government, banksgovernment, banks

Regulating Banking and Regulating Banking and FinanceFinance

Congress took another Congress took another step to reorganize the step to reorganize the banking system banking system

Glass-Steagall Act - Glass-Steagall Act - Established Established Federal Federal Deposit Insurance Deposit Insurance Corporation (FDIC)Corporation (FDIC) insured individual bank insured individual bank

accounts up to $5000 accounts up to $5000 Regulates banking Regulates banking

practices ( forced them practices ( forced them to act cautiously with to act cautiously with money)money)

Regulating Banking and Regulating Banking and FinanceFinance

Federal Securities ActFederal Securities Act – Required – Required companies must give all information on companies must give all information on stocksstocks

Securities and Exchange Commission Securities and Exchange Commission (SEC)(SEC) created to regulate stock market created to regulate stock market

FDR got law allowing production of some FDR got law allowing production of some alcoholic beveragesalcoholic beverages

2121stst Amendment Amendment repealed prohibition by repealed prohibition by end of 1933end of 1933

Helping the American Helping the American PeoplePeople

Roosevelt administration Roosevelt administration implemented programs implemented programs aimed at helping farmers aimed at helping farmers & other workers to & other workers to stimulate economy stimulate economy

Agricultural Agricultural Adjustment Act (AAA)Adjustment Act (AAA) raised food prices by raised food prices by lowering supplylowering supply

- - Government paid Government paid farmers not to plant farmers not to plant cropscrops

Helping the American Helping the American PeoplePeople

Tennessee Valley Tennessee Valley Authority - Authority - Created jobs Created jobs renovating & renovating & building damsbuilding dams

-- Also provided Also provided flood control & flood control & hydroelectric hydroelectric power to region power to region

Helping the American Helping the American PeoplePeople

Civilian Civilian Conservation Conservation CorpsCorps (CCC)(CCC) - - public works jobs for public works jobs for young men 18 to 25 young men 18 to 25 - Built road, planted - Built road, planted trees & helped in trees & helped in soils erosion & flood soils erosion & flood control projects control projects - Men sent $25 out - Men sent $25 out of $30 home to of $30 home to family each month family each month

NIRANIRA

National Industrial National Industrial Recovery Act - Recovery Act - established codes of established codes of fair practice for fair practice for industriesindustries

Created Created National National Recovery Recovery Administration Administration (NRA)(NRA) NRANRA sets standards, sets standards,

prices, limits prices, limits productionproduction

NIRANIRA

1933 - 1933 - Public Works Public Works Administration Administration (PWA) (PWA) was was established as part of established as part of thethe NIRA NIRA

– – It provided money It provided money to states to create to states to create jobs chiefly in the jobs chiefly in the construction of construction of schools & other schools & other community buildings community buildings

Food, Clothing, and ShelterFood, Clothing, and Shelter

Home Owners Home Owners Loan CorporationLoan Corporation gave loans to gave loans to prevent prevent foreclosuresforeclosures

Federal Housing Federal Housing AdministrationAdministration gives loans for gives loans for mortgages & mortgages & repairs repairs (FHA)(FHA)

Food, Clothing, and ShelterFood, Clothing, and Shelter

Federal Federal Emergency Relief Emergency Relief Administration -Administration -direct relief to direct relief to needyneedy

The New Deal Comes Under The New Deal Comes Under AttackAttack

Deficit spendingDeficit spending - spending more - spending more money than government takes inmoney than government takes in- funded New Deal- funded New Deal

Opposition rose when the New Deal Opposition rose when the New Deal didn’t stop the Depression didn’t stop the Depression

Liberals didn’t think New Deal did Liberals didn’t think New Deal did enough to help poor, & fix economyenough to help poor, & fix economy

Conservatives believed Roosevelt used Conservatives believed Roosevelt used the New Deal to control business & the New Deal to control business & socialize economysocialize economy

The Supreme Court ReactsThe Supreme Court Reacts

Supreme Court struck down Supreme Court struck down NIRANIRA & & AAA AAA as unconstitutionalas unconstitutional

FDR proposed FDR proposed “Court-packing bill”“Court-packing bill” Change the Supreme Court from 9 to 15 Change the Supreme Court from 9 to 15

justicesjustices Would enable FDR to appoint 6 new justices Would enable FDR to appoint 6 new justices

Congress & press protestedCongress & press protested Starting in 1937 - justices retire & FDR Starting in 1937 - justices retire & FDR

appointed seven new ones appointed seven new ones

Huey Long Attacked the New Huey Long Attacked the New DealDeal

Governor of Louisiana Governor of Louisiana "King Fish""King Fish"

Built schools and hospitalsBuilt schools and hospitals Ruled Louisiana like a Ruled Louisiana like a

dictatordictator Wanted to be presidentWanted to be president Decided to challenge FDRDecided to challenge FDR Offered new deal Offered new deal

"Share our wealth""Share our wealth"- Called for every family to - Called for every family to get yearly income money to get yearly income money to buy food and housing buy food and housing - Taxed the rich heavily- Taxed the rich heavily

Made enemies in his Made enemies in his attempt to become attempt to become presidentpresident- Shot and killed in 1935- Shot and killed in 1935

Section 2Section 2The Second New The Second New

Deal Deal Takes HoldTakes Hold

The Second New Deal includes The Second New Deal includes new programs to extend federal new programs to extend federal aid and stimulate the nation’s aid and stimulate the nation’s

economy.economy.

The Second Hundred DaysThe Second Hundred Days

By 1935, economic recovery not as By 1935, economic recovery not as great as FDR had expectedgreat as FDR had expected Unemployment remained highUnemployment remained high Work programs & productions still Work programs & productions still

behind 1920s levels behind 1920s levels FDR launched second phaseFDR launched second phase Provided more relief for farmers, Provided more relief for farmers,

workersworkers

The Second Hundred DaysThe Second Hundred Days First Lady First Lady Eleanor Eleanor

RooseveltRoosevelt a social a social reformer prodded reformer prodded presidentpresident She traveled the She traveled the

country observing country observing the social conditions the social conditions & reminding FDR & reminding FDR about the sufferingabout the suffering

She also pushed for She also pushed for him to appoint him to appoint women to women to government positionsgovernment positions

Election of 1936Election of 1936 1936 - Democrats won 1936 - Democrats won

presidency & large presidency & large majorities in both majorities in both houseshouses

First time most African First time most African Americans voted Americans voted DemocraticDemocratic

First time labor unions First time labor unions supported presidential supported presidential candidatecandidate

Election was a vote of Election was a vote of confidence in FDR & the confidence in FDR & the New DealNew Deal

Helping FarmersHelping Farmers 1936 - 1936 - Soil Conservation and Soil Conservation and

Domestic Allotment ActDomestic Allotment Act replaced AAA replaced AAA- Rewarded farmers for practicing soil - Rewarded farmers for practicing soil conservationconservation

New Agricultural Adjustment Act avoided New Agricultural Adjustment Act avoided unconstitutional provisionunconstitutional provision

Resettlement Administration gave loans to Resettlement Administration gave loans to small farmers to buy landsmall farmers to buy land

Farm Security AdministrationFarm Security Administration - loaned - loaned to tenant farmers to buy landto tenant farmers to buy land- FSA hires photographers to shoot - FSA hires photographers to shoot pictures of rural towns & farms pictures of rural towns & farms

Roosevelt Extends ReliefRoosevelt Extends Relief 22ndnd New Deal New Deal established a established a

series of programs to help series of programs to help youths, professionals & youths, professionals & other workers other workers

Works Progress Works Progress Administration (WPA)Administration (WPA)- WPA workers built - WPA workers built airports, roads, public airports, roads, public buildingsbuildings- Women workers sewed - Women workers sewed clothes for the needyclothes for the needy- WPA employed - WPA employed professional writers, artists, professional writers, artists, performersperformers- Gave aid to students in - Gave aid to students in exchange for part-time workexchange for part-time work

Roosevelt Extends ReliefRoosevelt Extends Relief

National Youth National Youth Administration Administration (NYA)(NYA) - provided - provided education, jobs, education, jobs, counseling & counseling & recreation to recreation to young people young people

Improving Labor and Other Improving Labor and Other ReformsReforms

Wagner ActWagner Act - replaced NIRA - replaced NIRA- Protected right to join unions & collective - Protected right to join unions & collective bargainingbargaining- Prohibited unfair labor practices (threatening - Prohibited unfair labor practices (threatening workers or firing union members)workers or firing union members)- Established National Labor Relations Board - Established National Labor Relations Board that heard testimony about labor practicesthat heard testimony about labor practices- Held elections to determine if workers wanted - Held elections to determine if workers wanted unionsunions

1938 - Fair Labor Standards Act sets maximum 1938 - Fair Labor Standards Act sets maximum hours & minimum wagehours & minimum wage- 44 hrs per week decreasing to 40 in two years - 44 hrs per week decreasing to 40 in two years & 25 cents per hr. & 25 cents per hr.

Social Security ActSocial Security Act

1935 - 1935 - Social Social Security ActSecurity Act created created Social Security Social Security system system

Provided insurance Provided insurance for retirees 65 or for retirees 65 or olderolder

Unemployment Unemployment compensationcompensation

Aid to disabled & Aid to disabled & families with childrenfamilies with children

Expanding and Regulating Expanding and Regulating UtilitiesUtilities

Rural Rural Electrification Electrification AdministrationAdministration ((REAREA) brought ) brought electricity to farmselectricity to farms- Rose from 12.6 % - Rose from 12.6 % in 1935 to 48% in in 1935 to 48% in 1945 to 90% in 1949 1945 to 90% in 1949

Public Utility Public Utility Holding Company Holding Company Act aims to stop Act aims to stop financial corruptionfinancial corruption

Section 3Section 3The New Deal Affects The New Deal Affects

Many GroupsMany GroupsNew Deal policies and actions New Deal policies and actions

affect various social and affect various social and ethnic groups.ethnic groups.

The New Deal Brings New The New Deal Brings New Opportunities for WomenOpportunities for Women

Several women were named to important Several women were named to important government positions government positions

Frances PerkinsFrances Perkins became first female cabinet became first female cabinet member (Secretary of Labor)member (Secretary of Labor)- FDR also appointed 2 women as diplomats & 1 - FDR also appointed 2 women as diplomats & 1 as a federal judgeas a federal judge

Women still faced discrimination in workplace Women still faced discrimination in workplace from male workersfrom male workers

National Recovery Administration (National Recovery Administration (NRANRA) set ) set some lower minimum wages for womensome lower minimum wages for women

Federal work programs hired far fewer women Federal work programs hired far fewer women than menthan men

African-American ActivismAfrican-American Activism FDR appointed more than FDR appointed more than

100 African Americans to 100 African Americans to governmentgovernment

Educator Educator Mary McLeod Mary McLeod BethuneBethune headed Division headed Division of Negro Affairs of NYAof Negro Affairs of NYA

Helped organize Helped organize “Black “Black CabinetCabinet” ”

Group of influential Group of influential African-American who African-American who advised FDR on racial advised FDR on racial issuesissues

The President Fails to Support The President Fails to Support Civil RightsCivil Rights

FDR was afraid of upsetting white FDR was afraid of upsetting white Southern Democratic votersSouthern Democratic voters

Refused to approve antilynching law & end Refused to approve antilynching law & end to poll taxto poll tax

New Deal agencies discriminated against New Deal agencies discriminated against African AmericansAfrican Americans

- pay them lower wages & favored whites- pay them lower wages & favored whites African- Americans generally supported African- Americans generally supported

Roosevelt administration & New DealRoosevelt administration & New Deal

- Saw them as the best hope for the future - Saw them as the best hope for the future

FDR Wins in 1936FDR Wins in 1936

New Deal CoalitionNew Deal Coalition - different groups that - different groups that support Democratic Partysupport Democratic Party

- Helped the democratic party dominate - Helped the democratic party dominate national politics throughout the 1930s & 1940s national politics throughout the 1930s & 1940s

Political organizations in large Northern cities Political organizations in large Northern cities supported FDRsupported FDR

Urban, religious, & ethnic groups also Urban, religious, & ethnic groups also supported FDRsupported FDR

- FDR appoints officials of urban-immigrant - FDR appoints officials of urban-immigrant backgroundbackground

Indian New DealIndian New Deal

Indian New Deal: gave Native Indian New Deal: gave Native Americans economic assistance and Americans economic assistance and greater control over their own greater control over their own affairsaffairs

Section 4Section 4Culture in the 1930sCulture in the 1930s

Motion pictures, radio, art, Motion pictures, radio, art, and literature blossom during and literature blossom during

the New Deal.the New Deal.

The Lure of Motion Pictures The Lure of Motion Pictures and Radioand Radio

About 65% of About 65% of population went to population went to movies once a weekmovies once a week- Movies were still - Movies were still affordableaffordable - People watched - People watched them to escape real them to escape real life life - - Grapes of WrathGrapes of Wrath- - Gone With the Gone With the WindWind- - The Wizard of OZThe Wizard of OZ

The Lure of Motion Pictures The Lure of Motion Pictures and Radioand Radio

90% of households had a 90% of households had a radioradio

Families listened together Families listened together every dayevery day

Dramas, variety shows Dramas, variety shows played in eveningplayed in evening- - Soap operas for Soap operas for homemakers broadcast in homemakers broadcast in middle of daymiddle of day- Children’s shows after - Children’s shows after school hoursschool hours- Immediate news - Immediate news coverage became coverage became customarycustomary--

The Lure of Motion Pictures The Lure of Motion Pictures and Radioand Radio

Orson WellesOrson Welles - - actor, director, actor, director, producer, & writerproducer, & writer

The Arts in Depression The Arts in Depression AmericaAmerica

Federal Art ProjectFederal Art Project paid artists to make art, paid artists to make art, & teach in schools& teach in schools

Aim to promote art Aim to promote art appreciation & positive appreciation & positive image of Americaimage of America

Murals typically Murals typically portrayed dignity of portrayed dignity of ordinary people at workordinary people at work

Federal Theater Federal Theater ProjectProject hired actors & hired actors & artistsartists

Singer, songwriter Singer, songwriter Woody GuthrieWoody Guthrie sung sung songs about the of plight songs about the of plight of poorof poor

Diverse Writers Depict Diverse Writers Depict American LifeAmerican Life

Federal Writers’ Federal Writers’ Project supported Project supported many who become many who become major writersmajor writers

Richard WrightRichard Wright - - African-American African-American author who wrote author who wrote Native SonNative Son

John SteinbeckJohn Steinbeck wrote wrote The Grapes of The Grapes of WrathWrath about Dust about Dust Bowl migrantsBowl migrants

Section 5Section 5The Impact of the The Impact of the

New DealNew DealThe New Deal affects The New Deal affects

American society not only in American society not only in the 1930s but also in the the 1930s but also in the

decades that follow.decades that follow.

The New Deal EndsThe New Deal Ends

By 1937, economic improvement By 1937, economic improvement convinced many that Depression was convinced many that Depression was endingending

Congress wanted to cut back Congress wanted to cut back programsprograms

By 1939 - By 1939 - New DealNew Deal was over was over

Supporters and Critics of the Supporters and Critics of the New DealNew Deal

Supporters Believed the New Deal Supporters Believed the New Deal helped country recover from economic helped country recover from economic difficultiesdifficulties

Conservatives though FDR made federal Conservatives though FDR made federal government too largegovernment too large

- stifled free enterprise & individual - stifled free enterprise & individual initiativeinitiative

Liberals thought New Deal didn’t do Liberals thought New Deal didn’t do enough to socialize economy* end enough to socialize economy* end inequalitiesinequalities

Effects of the New DealEffects of the New Deal Expanded power of federal government & Expanded power of federal government &

presidentpresident Social Security Act - Social Security Act - Federal government takes Federal government takes

responsibility for citizens’ welfare responsibility for citizens’ welfare - Provided aid for aged, disabled & needy- Provided aid for aged, disabled & needy

FDIC FDIC still protects individual investors in case of still protects individual investors in case of bank failurebank failure

SECSEC still monitors stock market, enforces laws on still monitors stock market, enforces laws on stock, bond salesstock, bond sales

New DealNew Deal laws set standards for wages & hours laws set standards for wages & hours- banned child labor - banned child labor - Permitted unions- Permitted unions

Civilian Conservation Corps (CCC )Civilian Conservation Corps (CCC ) - planted - planted trees, built hiking trails, & fire lookout towerstrees, built hiking trails, & fire lookout towers

Effects of the New DealEffects of the New Deal Soil Conservation ServiceSoil Conservation Service taught farmers how taught farmers how

to preserve soilto preserve soil- Contour plowing, terraces, & crop rotation- Contour plowing, terraces, & crop rotation

1934 - 1934 - Taylor Grazing ActTaylor Grazing Act reduced grazing on reduced grazing on public landspublic lands- Grazing had contributed to erosion that caused - Grazing had contributed to erosion that caused the dust bowl the dust bowl

Tennessee Valley Authority (TVATennessee Valley Authority (TVA) created ) created electricity, & prevented floodselectricity, & prevented floods

New Deal reduced suffering & gave people hopeNew Deal reduced suffering & gave people hope- Provided jobs, food & money- Provided jobs, food & money

New Deal didn't end depression New Deal didn't end depression WWIIWWII did did