Prof.

Michael Stafford Mercy College Presents

1929-1939
Stock market crash Didnt realize the effect it would have No money to replenish what was borrowed

Many found being broke humiliating.

The Roaring 20s

The new concept of credit People were buying:
Automobiles Appliances Clothes

Fun times reigned

Dancing Flappers Drinking

Why was this bad?

Credit system
People didnt really have the money they were spending

WWI
The U.S. was a major credit loaner to other nations in need Many of these nations could not pay us back

The Stock Market

People bought stocks on margins
If a stock is $100 you can pay $10 now and the rest later when the stock rose

Stocks fall
Now the person has less than $100 and no money to pay back

And then.

With people panicking about their money investors tried to sell their stocks
This leads to a huge decline in stocks Stocks were worthless now People who bought on margins now could not pay Investors were average people that were now broke

 Herbert Hoover was president at the start Philosophy: Well make it! What He Did: Nothing The poor were looking for help and no ideas on how to correct or help were coming

 Farmers were already feeling the effects

Prices of crops went down Many farms foreclosed

People could not afford luxuries

Factories shut down Businesses went out

Banks could not pay out money People could not pay their taxes
Schools shut down due to lack of funds

Many families became homeless and had to live in shanties

Many waited in unemployment lines hoping for a job.

People in cities would wait in line for bread to bring to their family.

Some families were forced to relocate because they had no money.

Hooverville
Some families were forced to live in shanty towns
A grouping of shacks and tents in vacant lots

They were referred to as Hooverville because of President Hoovers lack of help during the depression.

A drought in the South lead to dust storms that destroyed crops.

The Dust Bowl

The South Was Buried

Crops turned to dust=No food to be sent out Homes buried Fields blown away South in state of emergency Dust Bowl the #1 weather crisis of the 20th century

Two Families During the Depression

A Farm Foreclosure

Some families tried to make money by selling useful crafts like baskets.

*FDR BEATS HOOVER 1932*

When he was inaugurated unemployment had increased by 7 million. Poor sections had 50% of the pop. unemployed Instated the New Deal

 People everywhere were effected by the depression It wasnt till President Roosevelt took over and tried to put the economy back together that people even saw a glimmer of hope

The Great Depression FDRs New Deal

THE NEW DEAL AFFECTED MANY GROUPS

African Americans
F.D.R. failed to support Civil Rights Afraid to upset Southern White Democrats Refused to pass anti-lynching laws Refused to end poll taxes Mary McLeod Bethune hired to run Division of Negro Affairs to make sure they hired African American Administrators and to provide job training to African Americans Organized the Black Cabinet to advise him on racial affairs. William Hastie and Robert Weaver appointed to the Department of the Interior Never before so many African American voices heard in government. Black activism grew under F.D.R. A. Philip Randolph organized the first black union. The Brotherhood of Sleeping Car Porters laid the groundwork for the Civil Rights Movement.

WOMAN
Nation Recovery Administration set wages lower for women. The Emergency Federal Relief Administration and the Civil Works Administration hired fewer women than men. Women still faced workplace discrimination. Francis Perkins became the first female cabinet member ( Sec. of Labor). Major role in Social Security system and supervised labor legislation.

Mexican Americans
Mexican immigrants came to the United States mainly in the 1920s mainly working as farmers. Farm laborers not governed by State or Federal labor laws. Attempts to unionized led to violence from employers. Their wages fell to 9 cents an hour. They were disqualified from most New Deal programs because they did not have permanent addresses.

Native Americans
Native Americans gained strong support from the F.D.R. Administration. Commissioner of Indian Affairs, John Collier, created the Indian Reorganization Act. Changed Indian policy from one of assimilation to autonomy. Restored some land to Tribal ownership. Government cant take Indian land and sell it to non-Indians. Number of boarding schools for Indians reduced and children began to be educated on Indian land. This benefited cultural rituals. Tribal Councils elected on reservations to run the day-by-day operations of the reservations.

NEW DEAL PROGRAMS 1933

EMERGENCY BANKING RELIEF ACT & GLASS-STEAGALL ACT CREATES THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) CIVILIAN CONSERVATION CORPS (CCC) BY EXECUTIVE ORDER NATIONAL INDUSTRIAL RECOVERY ACT (NIRA) CREATES NATIONAL RECOVERY ADMINISTRATION (NRA) OVERTURNED BY SUPREME COURT, 1935 FEDERAL EMERGENCY RELIEF ACT (FERA) PART OF NIRA PUBLIC WORKS ADMINISTRATION (PWA) UNDER FERA AGRICULTURAL ADJUSTMENT ACT (AAA) OVERTURNED BY SUPREME COURT, 1935 SECURITIES ACT TENNESSEE VALLEY AUTHORITY (TVA) SOIL CONSERVATION SERVICE (SCS) FARM CREDIT ACT CREATES THE FARM CREDIT ADMINISTRATION (FCA)

NEW DEAL PROGRAMS 1934

CIVIL WORKS AGENCY (CWA) (1934 ONLY) UNDER FERA FEDERAL HOUSING ACT CREATES FEDERAL HOUSING ADMINISTRATION (FHA) SECURITIES & EXCHANGE ACT CREATES THE SECURITIES & EXCHANGE COMMISSION (SEC) FEDERAL COMMUNICATIONS ACT CREATES THE FEDERAL COMMUNICATIONS COMMISSION (FCC) GOLD RESERVE ACT NATIONAL LABOR RELATION BOARD (NLRB) BY EXECUTIVE ORDER

NEW DEAL PROGRAMS 1935 & 1936

1935 EMERGENCY RELIEF APPROPRIATION (REPLACES FERA) FUNDS THE NEW WORKS PROGRESS ADMINISTRATION (WPA) RURAL ELECTRIFICATION AUTHORITY (REA) RESETTLEMENT ACT CREATES RESETTLEMENT ADMINISTRATION (RA) NATIONAL LABOR RELATIONS ACT (NLRA) CONFIRMS NATIONAL LABOR RELATIONS BOARD (NLRB) SOCIAL SECURITY ACT (SSA) CREATES SOCIAL SECURITY ADMINISTRATION & TRUST FUND SOIL CONSERVATION & DOMESTIC ALLOTMENT ACT (1935) CONFIRMS SCS 1936 FEDERAL TRADE COMMISSION (FTC) STRENGTHENED RURAL ELECTRIFICATION ACT (CONFIRMS REA)

NEW DEAL PROGRAMS 1937 AND 1938

1937 UNITED STATES HOUSING ACT (USHA) BONNEVILLE POWER ADMINISTRATION (BPA) FARM TENANCY ACT (FTA) FARM SECURITY ADMINISTRATION (FSA) CREATED OUT OF RESETTLEMENT ADMINISTRATION 1938 FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) NEW AGRICULTURAL ADJUSTMENT ACT (AAA) FAIR LABOR STANDARDS ACT (FLSA) CIVIL AERONAUTICS ACT (CAA)

NEW DEAL PROGRAMS 1939-1949

1939 - FEDERAL WORKS ADMINISTRATION (FWA) REORGANIZATION OF PUBLIC WORKS (WPA, PWA, USHA, BPA, ETC.) 1941 - WAR WITH JAPAN 1942 - PWA & CCC TERMINATED 1943 - WPA TERMINATED 1945 - DEATH OF PRESIDENT ROOSEVELT 1946 - FSA TERMINATED 1949 - FWA TURNED INTO A SMALLER GENERAL SERVICES ADMININSTRATION (GSA)

TWILIGHT OF THE NEW DEAL

During F.D.R.s term from 1933-1937 there was only a modest recovery In 1937 the economy took a turn for the worse because the new social security tax took a bite out of payroll.

F.D.R. BEATS LANDON 1936

F.D.R. BEATS WILKKIE 1940

F.D.R. BEATS DEWEY1944

CRITICISM OF THE NEW DEAL

Waste and confusion Too Communist: Rooseveltski Look before you leap spirit Bureaucratic interference and regimentation Huge National Debt Handout State people will expect it Caused greater class strife Private enterprise stifled F.D.R. too aggressive against the Supreme Court The New Deal did not cure the Great Depression

F.D.R. DEAD 1945

PRAISE OF THE NEW DEAL

Relief was granted Created balancing of the Human Budget Purged American society of capitalists worst abuses Socialist party died at this time Bold reform without a bloody revolution The greatest conservative since Hamilton because he supported Big Government. Also compared to Jefferson in his support to the Forgotten Man.