FDR Offers Relief and Recovery by wufengmei007


									New Trends in Popular Culture
 Americans enjoy more
  leisure time
     The average work week in the
      city: 1850-70, 1910-55, 1930-45
     At the same time, salaries and
      wages were on the rise
   Americans Flock to the
     With more free time and more
      of a disposable income,
      Americans looked for new
Motion Pictures
 During the 1920s, 60-100
  million Americans went
  to the movies each week!
     Motion pictures
     transcended languages and
     literacy- unlike Broadway
   Charlie Chaplin, the most
    popular silent film star,
    played Little Tramp
   The Jazz Singer- (1927) The
    first movie with sound
    synchronized to the action
     Silent pictures faded out,
     replaced by “talkies”
The Radio and Phonograph
  Break Barriers
 Radios brought distant
  events into millions of
  homes in a way that
  newspapers no longer
 Phonographs allowed for
  people to listen to the
  songs they heard on the
  radio anytime they
   The Golden Age of Sports
     Babe Ruth
     Red Grange
     Jack Dempsey
     Bobby Jones
     Bill Tilden
   Americans needed hope
    after WWI, the 1920s sports
    heroes gave them just that.
    The Great Depression
   Causes of the Great Depression
    Problems in the Agricultural Sector
     Farmers were ¼ of the American workforce
     Demand for crops were still low (compared to time of war)
     Most were in debt from when they bought more land, and farm
       equipment to meet the demand of wartime crop production
    The Great Depression
2. Wealth was Distributed Unevenly
   1923-1929 Worker productivity increased by 32%,
    however, workers’ wages increased only 8%.... =
    corporate profits up 65%
        Rich got A LOT richer, poor got poorer
       1929, the top 1% of earners made the same amount
        of money as the bottom 42% of Americans.
        60% of all American families earned less than $2,000 per
        24,000 of the country’s wealthiest families earned
         $100,000 or more.
       PROBLEM- rich families did not eat 50x more, did
        not purchase 50x more= The wealthy few did not
        buy enough to keep the economy booming
3. Easy Credit hides the
  problems in the economy
 By 1929, 80% of radios and
  60% of cars were
  purchased on installment
 The majority of Americans
  were living beyond their
    The Great Depression
   The Stock Market Crashes
   October 23, 1929- Dow Jones
    drops 21 points in one hour=
    confidence lost in the market
   October 24 (Black Thursday)
    stock market continuing to
    drop, investors start to sell.
   October 29, Black Tuesday,
    “The Crash” – more than 16
    million shares were sold,
    BILLIONS of dollars lost.
   People that bought on the
    margin lost everything they
The Great Depression
The Banks Collapse
   1st institution to feel effects,
    depositors feared for their
    money and withdrew from the
   Monetary Policies- 1920s
    Federal Reserve cut interest
    rates to stimulate growth
     In 1929 the Fed limited the money
      supply to discourage
      overspeculation (lending).
     The result, there was too little
      money in circulation to help the
      economy after the crash. Banks
      were out of hard money had to
      ▪ 1929- 641 commercial banks closed
      ▪ 1930- 1,350 closed
      ▪ 1931- 1,700 closed
The Great Depression
Businesses Close, Unemployment
 The collapse of the stock market
  and reduced consumer spending,
  businesses began production
  cutbacks to save money.
 Companies began to close plants,
  laying off employees
 As more Americans lost their jobs,
  unemployment grew, incomes
  shrank, consumers spent less
  money… so businesses cut
  production even more.
 By 1933, 25% of all American
  workers were unemployed
The Great Depression
4. Hawley-Smoot Tariff raised
  prices of foreign imports to a
  level where they could not
  compete in American market.
 European countries enacted
  tariffs of their own, closing the
  international market to
  American producers.
 The ripple effect caused by the
  Hawley-Smoot Tariff helped to
  destroy international trade,
  devastating to global economy.
The Great Depression
Depression Goes Global
 WWI left global economic structure shaky,
  Germany borrowed from the U.S. to pay GB &
  France, and GB & France owed money to U.S.
  PLUS an international imbalance in trade. THE
 U.S. can’t loan money to Germany any longer,
  and well you get the idea…
 Europe experiences the same cycle of business
  failures, banks collapse and unemployment
    OK, so what REALLY caused the
    Great Depression?
   Influential economist, John Maynard Keyes argued that
    a lack of government interference led to the Great
   Lack of money supply (the Fed), unequal distribution of
    wealth (Harding/Coolidge pro-big business), stock
    speculation (buying on the margin), consumer
    spending (installment credit), productivity, and
    employment could have been controlled by a proactive
   But others disagree…
                             Causes of the
                            Great Depression

Availability of   Agricultural        Foreign trade Hurt   Uneven Distribution
 easy credit       problems               By Tariffs           Of Wealth
Americans Face Hard Times
Misery & Despair Grip America’s
 Many people lost jobs and were
  evicted from their homes, slept
  in parks, sewer pipes.
     Shantytowns- made up of shacks,
      also called Hoovervilles
   Bread Lines- lines of people
    waiting to receive food provided
    by charities.
Americans Face Hard Times
 Poverty Devastates Rural America
  Drought plagued the great Plains in the 1930s.
  Overproduction- farmers plowed through
   plains grasses that in the past and prevented
   the topsoil from blowing away during drought.
  The combination of high winds, drought, and
   loose topsoil resulted in massive dust clouds.
  This area of the Great Plains (Texas, Oklahoma,
   Kansas, New Mexico, Colorado) became known
   as the Dust Bowl
  1930-1934, 1 million farms failed to pay
   mortgages and lost their farms.
    Some farmers remained on their land as
      tenant farmers, worked for bigger
    Okies- Dust Bowl refugees, most headed
      west looking for jobs.
Americans Face Hard Times
Few Americans Escape Hard times
    Increase in mental illness -Suicides
    went up by 30%
   Families broke apart under the
    financial strain.
   People stopped going to the doctors
   No longer afford the “extras” like
    movies or entertainment
   300,000 became “Hoboes,” which
    were people who wandered the
    country, hitching rides on railroad
    boxcars and sleeping under bridges.
Hoover’s Response Fails
Cautious Response to Depression Fails
   Asked businesses to keep
    employment, wages, and prices at
    current level.
   Reduced taxes, lower interest rates,
    created public works program
   Asked the wealthy to donate and
   He encouraged, did not legislate.
    FAILED, businesses continued to do
    what was best for them.
   Hoover also believed in localism, the
    policy whereby problems could best
    be solved by local and state levels.
    States had no money to do so
   Hoover believed that public
    assistance is unconstitutional.
Hoover’s Response Fails
Hoover Adopts More Activists
Hoover tried to help by doing the
 Reconstruction Finance
  Corporation (RFC) 1932
     $1 billion gov’t loans to railroads,
     Trickle-down economics= give
      money to banks, banks loan to
      businesses, businesses hire workers,
      production and consumption
      increases, ending the depression.
   Hoover Dam
     Brought jobs to the southwest in the
      early 1930s
Hoover’s Response Fails
Americans Protest Hoover’s Failures
 Some Americans questioned capitalism- it
  created great inequalities, and the depression
  was a sign that it was about to collapse.
 The Bonus Army Marches on Washington,
 WWI Veterans seeking the bonuses Congress
  promised them, known as Bonus Army
     Adjusted Compensation Act (1924) promised a
      payment to veterans in 1945.
       ▪ Many out of work veterans argued that they
         should receive it in 1931.
   Congress passed the bill, Hoover vetoed
   20,000 veterans marched on Washington and
    camped out.
     Hoover called for General Douglas McArthur
      and federal troops to clear out the camps            “Don’t Pay, All Stay!”
     The use of tanks and tear gas were being used
      against veterans, destroying the little popularity
      that Hoover had left.                                Needless to say, Hoover
                                                           was not re-elected…
The New Deal (1932-1941)
  FDR Offers Relief and Recovery
Roosevelt Takes Charge
 Democratic presidential nominee in 1932
  election, pledged “a new deal for the
  American people”

“The country needs, and unless I mistake its
      temper, the country demands bold,
  persistent experimentation. It is common
  sense to take a new method and try it. If it
  fails, admit it frankly and try another. But
           above all, try something!”
                FDR, May 1932
FDR Offers Relief and Recovery
   Not only does FDR win, but
    the Democrats also gain
    control of the Senate as
   FDR collects a group of
    professionals and
    academics, whom were
    nicknamed the “Brain
   Advisors were made up of
    men and women,
    republicans and democrats
   Also valued the advice of
    wife Eleanor.
FDR Offers Relief and Recovery
FDR’s First 100 Days
 FDR proposed and
  Congress passed 15 bills
 3 Main Goals:
     RELIEF
     REFORM
   Restored the nation’s
     Start of the fireside chats
FDR Offers Relief and Recovery
   First 100 Days Activity
     Reforming the Financial
     Helped Farmers
     Rural Southerners
     Relief and Industrial
FDR Offers Relief and Recovery
Opposition to the New Deal Emerges
 Conservatives
     Gov’t was too powerful
     Gov’t determined how businesses operated, created huge
      national debt, destroying free enterprise.
   Liberals
     Gov’t was not doing enough to end depression, mostly
      socialists and communists
   Populists (spokesmen for poor Americans)
     Father Charles Coughlin, catholic priest/radio host,
      wanted to nationalize banks, anti-Semitic, supported….
     Huey Long, Louisana Senator, “Shar our Wealth” tax the
      rich and distribute to the poor. Many enemies, assisinated
    FDR Offers Relief and Recovery
The Second New Deal
   addressed the problems of
    the elderly, the poor, and the
    unemployed. It created new
    public-works projects;
    helped farmers; and enacted
    measures to protect workers
FDR Offers Relief and Recovery
Workers Progress Administration (WPA)
 built or improved a good part of the nation’s
  highways, dredged rivers and harbors, and
  promoted soil and water conservation.
 provided programs in the arts for
  unemployed artists.
 By 1943 the WPA employed 8 million people.
 Helped build the San Antonio River Walk and
  parts of the Appalachian Trail.
FDR Offers Relief and Recovery
Social Security Act
 Set up a system of pensions for retired workers.
 The law also created insurance for victims of work-
  related accidents, and provided aid for poverty-
  stricken mothers and children, the blind, and the
Rural Electrification Administration (REA)
 Loaned money to electric utilities to build power
 Provided affordable electricity for isolated rural
FDR Offers Relief and Recovery
 Fair Labor Standards Act
  Banned Child labor.
  Set the work week at 44 hours.
  Established a hourly minimum
    New Deal’s most controversial legacy
 National Labor Relations Act
   (Wagner Act)
  Outlawed unfair labor practices.
  Granted workers the right to
   organize unions and to use
   collective bargaining.
  Created the National Labor
   Relations Board (NLRB) to look into
   worker’s complaints.
FDR Offers Relief and Recovery
Challenges To The New Deal
 The Supreme Court struck down
  the AAA and the NIRA on the
  grounds that agriculture is a local
  matter and should be regulated
  by the state instead of the federal
  government (unconstitutional).
 FDR issued a plan to add up to six
  new justices to the nine-member
    Court Packing because all of the
     new justices would most likely
     support the New Deal legislation.
      ▪ Historical Significance: Critics saw
        FDR as trying to upset the balance
        of power between the 3 branches
        of government.
 FDR Offers Relief and Recovery
Effects of the New Deal
 Frances Perkins was the first
   female cabinet member,
   Secretary of Labor. Sec.
   Perkins was influential in
   establishing Social Security and
   winning approval for the Fair
   Labor Standards Act
 Mary McLeod Bethune helped
   to organize a “Black Cabinet” of
   influential African Americans to
   advise the Roosevelt
   administration on racial issues.
FDR Offers Relief and Recovery
 African Americans Make
   Advances & Face Challenges
  African Americans were one
   group that benefited from the
   New Deal. Mary McLeod
   Bethune worked to provide jobs
   for African Americans. FDR met
   with the “Black Cabinet” to
   discuss social issues that African
   Americans were facing. Did
   Roosevelt always listen to the
   “Black Cabinet?” Why?
       ▪ No. Needed the political support of
         whites in the South.
    Overall, African Americans still
     voted for FDR because he was
     their best hope for the future.
FDR Offers Relief and Recovery
 New Deal Aims at Other Groups
      Generally approved of the New Deal because the CCC &
       WPA helped some. The New Deal did not interfere with
       their work on farms.
      John Collier created the Indian Reorganization Act (Indian
       New Deal) of 1934, which moved away from the policy of
       assimilation, economic assistance, and greater control of
       their own affairs.
New Deal Coalition
 This was an alignment of diverse groups dedicated
  to supporting the Democratic Party.
     Southern Whites
     African Americans
     Blue collar industrial workers
     Immigrant roots
     Poor Midwestern farmers
   After 1932, democrats secured the Whitehouse in 6
    out of the next 8 presidential elections
Evaluating The New Deal
 The New Deal expanded the power of the government and the
     Regulated business.
     Settled labor and management disputes.
     The FDIC and SEC restored confidence in the banking and stock market.
   Government employed deficit spending.
     FDR left the country with a large debt.

   What had the greatest effect?
     Social Security – Assumed the responsibility for the social welfare of its
     Effects on Agriculture – Oversaw the nation’s agriculture by setting up
      quotas on the production of crops.
     Environmental Benefits – Conserved and promoted policies designed to
      protect the nation’s natural resources.
     FDR’s Legacy – Ranks 3rd in most Historical Rankings of Presidents.
       ▪ Why do you think? Who’s he behind?
         ▪ Helped the country in one of the most trying times in history.
         ▪ George Washington, Abraham Lincoln

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