The Great Depression and The New Deal b The Economy- trouble in paradise b The Crash of 1929 b Causes of the Depression b The Hoover Years b FDR and the

The Great Depression and The Great Depression and The New DealThe New Deal

The Economy- trouble in paradiseThe Economy- trouble in paradise The Crash of 1929The Crash of 1929 Causes of the DepressionCauses of the Depression The Hoover YearsThe Hoover Years FDR and the New DealFDR and the New Deal The First 100 DaysThe First 100 Days

Inequality of the Wealth in Inequality of the Wealth in the 1920sthe 1920s

Real wages increased 21%Real wages increased 21%


Real wages increased 21%Real wages increased 21% But corporate dividends went up But corporate dividends went up

66%66%



66%66% Richest 5% of population increased Richest 5% of population increased

its share of the wealth from 1/4 to its share of the wealth from 1/4 to 1/31/3



66%66% Richest 5% of population increased Richest 5% of population increased

its share of the wealth from 1/4 to its share of the wealth from 1/4 to 1/31/3

And the richest 1% controlled 20% And the richest 1% controlled 20% of all income in the nationof all income in the nation


Real wages increased 21%Real wages increased 21% But corporate dividends went up 66%But corporate dividends went up 66% Richest 5% of population increased Richest 5% of population increased

its share of the wealth from 1/4 to 1/3its share of the wealth from 1/4 to 1/3 And the richest 1% controlled 20% of And the richest 1% controlled 20% of

all income in the nationall income in the nation 16 million lived below poverty level of 16 million lived below poverty level of

$2000$2000

The Stock Market Crash The Stock Market Crash

The Stock Market Crash The Stock Market Crash 1924- 1001924- 100 1925- 1811925- 181 1927- 2451927- 245 1928- 3311928- 331 September 1929- peaked at 452 September 1929- peaked at 452

then started to fallthen started to fall October 1929- ended up at 224October 1929- ended up at 224

Herbert HooverHerbert Hoover

Some Causes of the Great Some Causes of the Great DepressionDepression


Overproduction and Overproduction and underconsumptionunderconsumption



Inequality of wealthInequality of wealth



Inequality of wealthInequality of wealth Overextension of creditOverextension of credit



Inequality of wealthInequality of wealth Overextension of creditOverextension of credit The Smoot-Hawley TariffThe Smoot-Hawley Tariff



Inequality of wealthInequality of wealth Overextension of creditOverextension of credit The Smoot-Hawley TariffThe Smoot-Hawley Tariff A series of natural disasters- The A series of natural disasters- The

Dust BowlDust Bowl

Hoover’s approach to the Hoover’s approach to the DepressionDepression

Top down- give money to Top down- give money to businesses and banks, to create businesses and banks, to create jobs (trickle-down economics)jobs (trickle-down economics)

Roosevelt and the New Roosevelt and the New DealDeal

The 100 DaysThe 100 Days The National Recovery Act (NRA)The National Recovery Act (NRA) The Tennessee Valley Authority (TVA)The Tennessee Valley Authority (TVA) The Safety NetThe Safety Net Nine Old Men- The court-packing Nine Old Men- The court-packing

schemescheme Keynes and Deficit SpendingKeynes and Deficit Spending The New Deal ReassessedThe New Deal Reassessed

Franklin Delano RooseveltFranklin Delano Roosevelt

Depression ScenesDepression Scenes

Food LinesFood Lines

HoovervilleHooverville

Migrant mother and familyMigrant mother and family

The Three “R”s of the New The Three “R”s of the New Deal Deal


Relief of Human sufferingRelief of Human suffering


Relief of Human sufferingRelief of Human suffering Recovery of the EconomyRecovery of the Economy


Relief of Human sufferingRelief of Human suffering Recovery of the EconomyRecovery of the Economy Reform (to prevent it from Reform (to prevent it from

happening again)happening again)

The New DealThe New DealThe 100 daysThe 100 days


A Bank “Holiday”A Bank “Holiday” Emergency Relief Banking Act- Emergency Relief Banking Act-

Created the FDICCreated the FDIC



Created the FDICCreated the FDIC Civilian Conservation CorpsCivilian Conservation Corps



Created the FDICCreated the FDIC Civilian Conservation CorpsCivilian Conservation Corps Federal Emergency Relief Act Federal Emergency Relief Act

(FERA)(FERA)



Created the FDICCreated the FDIC Civilian Conservation CorpsCivilian Conservation Corps Federal Emergency Relief Act Federal Emergency Relief Act

(FERA)(FERA) Agricultural Adjustment Act (AAA)Agricultural Adjustment Act (AAA)



Created the FDICCreated the FDIC Civilian Conservation CorpsCivilian Conservation Corps Federal Emergency Relief Act (FERA)Federal Emergency Relief Act (FERA) Agricultural Adjustment Act (AAA)Agricultural Adjustment Act (AAA) Home-owners Loan Corp. (HOLC)Home-owners Loan Corp. (HOLC)



Created the FDICCreated the FDIC Civilian Conservation CorpsCivilian Conservation Corps Federal Emergency Relief Act (FERA)Federal Emergency Relief Act (FERA) Agricultural Adjustment Act (AAA)Agricultural Adjustment Act (AAA) Home-owners Loan Corp. (HOLC)Home-owners Loan Corp. (HOLC) Civil Works Agency (CWA)Civil Works Agency (CWA)

National Recovery ActNational Recovery Act


Price fixing and codes of fair Price fixing and codes of fair competitioncompetition



Minimum wages and maximum Minimum wages and maximum hourshours



Minimum wages and maximum Minimum wages and maximum hourshours

Section 7a- Gave organized labor Section 7a- Gave organized labor right to organize and bargain right to organize and bargain collectivelycollectively



Minimum wages and maximum hoursMinimum wages and maximum hours Section 7a- Gave organized labor right Section 7a- Gave organized labor right

to organize and bargain collectivelyto organize and bargain collectively The Public Works Administration (PWA) The Public Works Administration (PWA)

spent $4 billion on 34,000 projectsspent $4 billion on 34,000 projects

The Tennessee Valley The Tennessee Valley AuthorityAuthority


ConservationConservation


ConservationConservation Govt. entered power-producing Govt. entered power-producing

businessbusiness



businessbusiness Served as a yardstick to see if Served as a yardstick to see if

private utilities were charging too private utilities were charging too muchmuch



businessbusiness Served as a yardstick to see if Served as a yardstick to see if

private utilities were charging too private utilities were charging too muchmuch

Produced Cheap ElectricityProduced Cheap Electricity



businessbusiness Served as a yardstick to see if private Served as a yardstick to see if private

utilities were charging too muchutilities were charging too much Produced Cheap ElectricityProduced Cheap Electricity Provided full employment for poor Provided full employment for poor

areaarea

The Social Security Act of The Social Security Act of 19351935


Unemployment InsuranceUnemployment Insurance


Unemployment InsuranceUnemployment Insurance Plan for old-age pensionsPlan for old-age pensions


Unemployment InsuranceUnemployment Insurance Plan for old-age pensionsPlan for old-age pensions Provisions made for disabled and Provisions made for disabled and

dependents dependents

John Meynard KeynesJohn Meynard Keynes

British economist who advocated British economist who advocated massive deficit spending by the massive deficit spending by the government to jump start the government to jump start the economy (Keynsian Economics)economy (Keynsian Economics)

Criticism of the New DealCriticism of the New Deal


Creeping SocialismCreeping Socialism


Creeping SocialismCreeping Socialism WastefulWasteful


Creeping SocialismCreeping Socialism WastefulWasteful Encouraged planned deficit Encouraged planned deficit

spendingspending



spendingspending Made people lazyMade people lazy



spendingspending Made people lazyMade people lazy Government had gotten too largeGovernment had gotten too large


Creeping SocialismCreeping Socialism WastefulWasteful Encouraged planned deficit spendingEncouraged planned deficit spending Made people lazyMade people lazy Government had gotten too largeGovernment had gotten too large Said FDR was pampering labor Said FDR was pampering labor

unionsunions


Creeping SocialismCreeping Socialism WastefulWasteful Encouraged planned deficit spendingEncouraged planned deficit spending Made people lazyMade people lazy Government had gotten too largeGovernment had gotten too large Said FDR was pampering labor unionsSaid FDR was pampering labor unions Failure to end the DepressionFailure to end the Depression

New Deal SucessesNew Deal Sucesses


ReliefRelief


ReliefRelief FDR probably saved capitalism by FDR probably saved capitalism by

staving off a possible revolutionstaving off a possible revolution



staving off a possible revolutionstaving off a possible revolution Provided a stable governmentProvided a stable government



staving off a possible revolutionstaving off a possible revolution Provided a stable governmentProvided a stable government Provided the foundations for the Provided the foundations for the

modern welfare state- the Safety modern welfare state- the Safety Net !Net !

Documents

The Great Depression and The New Deal b The Economy- trouble in paradise b The Crash of 1929 b Causes of the Depression b The Hoover Years b FDR and the