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GREAT DEPRESSION

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GREAT DEPRESSION Powered By Docstoc
					    GREAT DEPRESSION 1929-
            1939?
                   DO NOW
Why do you think the Great Depression was such
             a shock to America?
 Which social class do you think will suffer the
                most and why?
           Key Economic Statistics
   Unemployment 3% in early 1929 to 38% in 1933
   5,000 banks failed and did not pay out the savings
    that people had in the bank
       “Run on the banks”
   200,000 evictions in NYC in 1930
   # of businesses in US
       1929-33,000
       1930- 20,000
   GNP
       1929- $104 billion
       1932- $59 billion
   400,000 farms foreclosed between 1929 and 1932
          Hoovervilles
 Hoovervilles- shanty towns built
 by the homeless. Houses were
 made out of tar paper, cardboard,
 orange crates. Why were they
 called Hoovervilles???
 Blamed Hoover for Depression
 Hoover blanket, Hoover wagons
   Hoover flag etc.
    Health/Psychological Impact
 Belief in US superiority/ Manifest Destiny
  etc. questioned- Big hit to US ego!!!!!
 Increased anxiety of losing job led to
  depression
 Increased suicide rate
 Birth rate/ life expectancy decreased (1st
  time ever in US history)
 Overall health declined… Why???
    No $$$ = poor medical care
    Less food= poorer health
       Discrimination during the
              Depression
 Why would the Depression lead to an
  increase in discrimination??
    scapegoating
 African-American unemployment 56%
 Blacks often fired on the spot if white
  worker applied for the job
 Women fired if they got married
     Problems on the Farm/Dust Bowl
   Farmers never benefitted during Roaring 20’s….
    Farm prices dropped throughout the decade
   “Dust Bowl”- giant windstorm of dirt/dust in the
    Midwest
       Causes
            Long drought in early 30’s
            Overproduction/improper farming techniques
       Effects
            Led to huge population shift as people left the Midwest for
             California/West Coast
                Population still today in Midwest states is still lower than it
                 was during the 1920’s
            Health deteriorated
            Dust storms travelled with the weather… snow in New England
             was often brown!!
    Hoover’s Response to the Great
              Depression
   What do you think President Hoover will try to do
    to solve the Depression?
   Hoover felt the best thing to do was to do basically
    nothing!!!!! So much for the Great Humanitarian!
   “I do not believe the power and the duty of the
    General Government ought to be extended to the
    relief of individual suffering…. The lesson should
    be that the though the people support the
    government, the Government should not support
    the people”
   Why do you think Hoover felt it would hurt America
    if the government directly helped the people???
            Hoover Response
   Public works
     $500 million on projects
     Boulder (Hoover) Dam

 Reconstruction Finance Co.
 Cut taxes for lower class
 Balanced budget
     Hoover and the Bonus Army
   WWI veterans were promised a bonus for their
    efforts in WWI. This payment was due by 1945
   Many veterans were hurt by Depression and
    wanted their bonus now
   17,000 men marched on Washington D.C.
    demanding their bonus. They camped outside
    the capitol on the great lawn… Should Hoover
    and the government pay them??
   Hoover decides against paying them, and orders
    the current army (led by Gen. MacArthur) to use
    bayonets, tear gas and burn down their “houses”
   A few deaths
          Election of 1932
 “Anyone But Hoover”!!!
 Franklin Delano Roosevelt (FDR) crushes
  Hoover in election 472-59
 “Happy Days are Here Again”!!
 http://www.rhapsody.com/player?type=und
  efined&id=alb.15258247&remote=undefin
  ed&page=undefined&pageregion=undefin
  ed&guid=undefined&from=undefined&__p
  code=
Pump Priming vs. Trickle Down
   FDR= Pump Priming (Demand Side)
   Hoover= Trickle Down (Supply side)
    2  economic philosophies on how to have a successful
      economy in a country
       Same   goal!!!! Different way to operate economy to reach
         the goal!!!!
        Relief                 Recovery                  Reform
Immediate Action to Halt   Pump Priming            Permanent Programs to
the Economy’s              Temporary Programs to   Avoid Situation from
Deterioration              Restart the Flow of     Happening Again
                           Consumer Demand         Insurance for Citizens
                                                   against disaster

Bank Holiday               Agricultural        Securities and
                           Administration      Exchange
                                               Commission
Emergency                  National Industrial Federal Deposit
Banking Act                Recovery Act        Insurance Corp.

Federal                    Home Owners             Social Security
Emergency Relief           Loan Corp.              Administration
Act
Civil Works                Works Progress          National Labor
Administration             Administration          Relations Board
Hoover’s Trickle Down
           VVVV
                                         New Profits
           VVVV
Govt cuts taxes on Rich              New Jobs

New Investment and Plant Expansion   Plant Expansion

New Jobs                             New Investment to meet demand

Increased Production                 Increased Demand

More Wages in Circulation            New $$ in Circulation
Demand Increases                     Relief Payments/ Temporary Jobs


                                             ^^^^^^^^
                                         ^^^^^^^^^^^^^
                                     FDR’s Pump Priming
Hoover’s Trickle Down     
                                  New Profits
                           
       VVVV                  New Jobs

  Govt cuts taxes on Rich  Plant Expansion

  New Investment and       
                             New Investment to meet
  Plant Expansion            demand
                           
                             Increased Demand

  New Jobs                 
                             New $$ in Circulation

  Increased Production     
                             Relief Payments/

  More Wages in              Temporary Jobs
  Circulation             ^^^^^^^^

  Demand Increases
                          FDR’s Pump Priming
                  FDR’s 3 R’s
   Relief
       Immediate Action to Help the US
   Recovery
       Temporary Programs to Restore the Health of
        the US economy
   Reform
       Permanent Programs to Prevent Another
        Depression
                    FDR’s New Deal
   FDR inaugural address- “The only thing we have to fear
    is fear itself”
       http://www.americanrhetoric.com/speeches/fdrfirstinaugural.html
   FDR pushes program after program through Congress to
    provide relief, create jobs, and stimulate the economy
   FDR style
       Alphabet Soup Programs
       Fireside chats- weekly radio speeches by FDR to US public
            Give them hope, faith, and the government
            Direct line to the people
   Eleanor Roosevelt- 1st lady
       Most active 1st lady ever
       Initiated many of the New Deal programs
       Daily newspaper column “My Day”
                  FDR and the Banks
   FDR and the Banks
       FDR orders all banks closed
       Emergency Banking Act-
            only allowed solvent banks to reopen with government
             approval
            Passed on same day initiated, most of Congress didn’t even
             read it
            Led to creation of FDIC (Federal Deposits Insurance
             Corporation)
                 Government insured bank deposits up to $5,000 ($250,000
                  today)
                 Positives
                     Restore consumer confidence in banks
                     Re-energize the flow of $$$
                 Negatives
                     Government takes huge financial risk
                             New Deal
   SEC- Securities and Exchange Commission
       Regulated stock market
            Government oversees buying on margin
            Regulates all stock trades
   HOLC- Home Owners Loan Corporation
   AAA- Agricultural Adjustment Act
       Government paid $$$ to farmers to not grow crops
        and kill livestock…. HMMM?? I thought people were
        hungry during the depression????
            Goal was to raise farm prices by reducing supply
            Schechter Poultry vs. U.S.
                  Court ruled AAA was unconstitutional…. Why?????
                      Gov’t cant limit earnings of an individual
          Election of 1936
 FDR vs. Alfred Landon
 FDR wins 523-8 (Landon wins Maine and
  Vermont)
 Shows overwhelming popular support for
  New Deal programs
                   FDR vs. the Courts
   The Supreme Court had shot down some of FDR’s New Deal programs
    (most famously Schechter Poultry case which kills AAA)… FDR believed they
    were attacking him because they were too old and too out of touch with the
    US and the new problems of the Depression…. 6 of the 9 justices were over
    age 70
   Democrats first tried to make constitutional amendment to get rid of judicial
    review, but FDR felt that would take too long
   Instead, FDR got Congress to pass the Judiciary Reorganization Bill of
    1937
        Modernized court system
        Allowed for the number of justices to be raised by a max of 1 new judge for
         every judge that was over 70,,,, raising total from 9 to 15
   Is this a good idea?????
   Reasons he felt he could do it
        Constitution never specified the # of judges to be on the Supreme Court
        The # had changed before (6,5,6,7,9,10,7,8,9)
        The Depression represented an emergency situation
   Reasons against it
        Critics called it FDR’s Court Packing Scheme
        Next slide for main reason!!!!!!!!!!
   End result- see next slide!!
           FDR vs. the Constitution
   What has been odd in all of the New Deal laws that we have talked about
    this past week in regards to the 3 branches of government???
        We always talked about FDR making all these New Deal laws…… Presidents don’t
         make laws,,,, Congress does,,,, or does it?????
        If FDR got the expanded courts, the President picks the new appointees, and
         then he will also have total control over that branch also
        His nomination of Hugo Black( a friendly New Deal senator) to Court in 1937
         resulted in public backlash when it was revealed Black was a member of KKK
        Public outcry against court packing plan led to its demise
   FDR in 1940 seeks 3rd term of office
        Why do you think he is going to say its ok to break GW’s long standing
         tradition?????
             His success with Great Depression
             New crisis of WWII, although he pledges during campaign there will be no foreign war
              if he is elected
   FDR vs. Wendell Willkie
   FDR wins 449-82
   FDR becomes only president to ever serve a 3rd term (even gets 4th term in
    1944 election)
   Eventually 22nd amendment in 1947 limits presidency at 2 terms
           Critics of the New Deal
   Republicans felt he was taking the country towards socialism
      Huge deficit spending and increased taxes
      FDR the warmonger
      FDR the dictator
   Some on the left felt he didn’t go far enough
      Huey Long (“Kingfish”) wanted to give every person in US a
       $5,000 check to buy a new home
   Father Coughlin- Irish priest and radio talk show host
      At first New Deal supporter (he coined the phrase “Roosevelt or
       Ruin”), he started being outspoken critic of FDR by 1934
      1/3 of US listened to his weekly radio show
      Believed FDR was conspiring with Jews to control and horde the
       $$ supply of US
       "When we get through with the Jews in America, they'll think the
       treatment they received in Germany was nothing.“
       FDR got Joe Kennedy and a future pope to try and silence
       Coughlin
 New Deal Discrimination

 Most New Deal programs gave jobs
  to young, single, white male
  workers, not blacks or females
 Jesse Owens, 1936 Olympic hero,
  rebuked Hitler story, stating, “It
  wasn’t Hitler who snubbed me, it
  was FDR” (FDR invited US white
  Olympians to White House, not
  black Olympians)

				
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