Great Depression and New Deal

Great Depression and New Deal

ROARING

20’S

Black Thursday"Stock prices have reached what looks like a permanently high plateau.”

Black Tuesday

Hoovervilles

Brother Can You Spare A Dime?

The Mood of the People

Hooverisms…The Power of Language

1930’s & The New Deal• I. A Mandate for change

A. The Mood of the PeopleB. Facts on the EconomyC. Election of 1932

1. Candidates2. Background on FDR

a. Political Careerb. Experience, Character, Intellect

3. Timing (What the people needed)4. First-Rate Politician

a. Coalitionsb. Charmc. Communications

5. The Campaign6. The Interregnum

Election of 1932

1930’s and The New Deal• II. The New Deal

A. Broker-State Plan1. The Plan

2. The Brain Trust

3. A Major Shift***

B. The First Hundred Days1. National Bank Holiday 7. Federal Emergency Relief

Administration

2. Emergency Banking Relief Act 8. Civil Works Administration

3. Economy Act 9. Tennessee Valley Authority

4. First Fireside Chat 10. Agricultural Adjustment Act

5. Banking Act of 1933 11. Farm Credit Act

a. FDIC 12. National Industrial Recovery Act

6. Civilian Conservation Corps a. National Recovery Administration

b. Public Works Administration

Fireside Chats

• In order to receive this benefit member banks must follow certain liquidity and reserve requirements. Banks are classified in 5 groups according to their risk-based capital ratio:– Well capitalized: 10% or higher – Adequately capitalized: 8% or higher – Undercapitalized: less than 8% – Significantly undercapitalized: less than 6% – Critically undercapitalized: less than 2%

• When a bank becomes undercapitalized the FDIC issues a warning to the bank. When the number drops below 6% the FDIC can change management and force the bank to take other corrective action. When the bank becomes critically undercapitalized the FDIC declares the bank insolvent.

Civilian Conservation

Corps

Federal Emergency Relief

Administration

FERA cont’d

Flood Control Projects

School and Park Repairs

Public Works Admin. Projects

Triborough Bridge Connects The Bronx, Manhattan And QueensGrand Coulee Dame

Civil Works Administration

Tennessee Valley Authority

National Industrial Recovery Act

Recovery, Relief, Reform

Christmas Dinner

Dust Storm

Dorthea Lange’sMigrant Mother

"The land just blew away; we had to go somewhere."

-- Kansas preacher, June, 1936

When the Okies left Oklahoma and moved to California, they raised the average intelligence level in both states.

Will Rogers

Route 66

Ghost of Tom Joad• Men walkin' 'long the railroad tracks

Goin' someplace there's no goin' backHighway patrol choppers comin' up over the ridgeHot soup on a campfire under the bridgeShelter line stretchin' round the cornerWelcome to the new world orderFamilies sleepin' in their cars in the southwestNo home no job no peace no rest

The highway is alive tonightBut nobody's kiddin' nobody about where it goesI'm sittin' down here in the campfire lightSearchin' for the ghost of Tom Joad

He pulls prayer book out of his sleeping bagPreacher lights up a butt and takes a dragWaitin' for when the last shall be first and the first shall be lastIn a cardboard box 'neath the underpassGot a one-way ticket to the promised landYou got a hole in your belly and gun in your hand

• Sleeping on a pillow of solid rockBathin' in the city aqueduct

The highway is alive tonightBut where it's headed everybody knowsI'm sittin' down here in the campfire lightWaitin' on the ghost of Tom Joad

Now Tom said "Mom, wherever there's a cop beatin' a guyWherever a hungry newborn baby criesWhere there's a fight 'gainst the blood and hatred in the airLook for me Mom I'll be thereWherever there's somebody fightin' for a place to standOr decent job or a helpin' handWherever somebody's strugglin' to be freeLook in their eyes Mom you'll see me."

The highway is alive tonightBut nobody's kiddin' nobody about where it goesI'm sittin' downhere in the campfire lightWith the ghost of old Tom Joad

1930’s and the New Deal• III. Critics of the New Deal

A. ConservativesB. Radicals

1. Fascists2. Communists

C. Thunder on the Left1. Father Charles E. Coughlin2. Dr. Francis Townsend3. Huey P. Long – “King Fish”

a. Share the Wealth PlanD. The Supreme Court

1. Schechter v. United States2. United States v. Butler

E. Election of 1936F. Court Packing Plan

The largest vote recorded by the American Communist Party was for William Z. Foster in the presidential election in 1932. Foster polled 102,991 votes, but Norman Thomas, the Socialist Party Candidate got seven times that number.

William Foster

Earl Browder1929-32

1932-45

American Communist Party

Thunder on the Left…

One of his famous speeches was, "Your will is my strength and your need is my justice. They want to ruin me so they can ruin

you, and I won't let them!"

Old Age RevolvingPension Plan

The Radio Preacher

“Every Man A King”"Share Our Wealth"

• No person would be allowed to accumulate a personal net worth of more than 100 to 300 times the average family fortune, which would limit personal assets to between $1.5 million and $5 million. Annual capital levy taxes would be assessed on all persons with a net worth exceeding $1 million.

• Every family was to be furnished with a homestead allowance of not less than one-third the average family wealth of the country.

• Every family was to be guaranteed an annual family income of at least $2,000 to $2,500, or not less than one-third of the average annual family income in the United States.

• No person would be allowed an annual income in excess of 100 to 300 times the average annual family income. Income taxes would be levied to ensure this.

• An old-age pension would be made available for all persons.

Election of 1936

• Section 3 of the National Industrial Recovery Act was an unconstitutional delegation of legislative power to the Executive, and was not a valid exercise of congressional Commerce Clause power. Second Circuit Court of Appeals affirmed in part, reversed in part.

The Agricultural Adjustment Act is an unconstitutional exercise of power.

United States v. Butler

Schechter Poultry Co. v. United States

Supreme Court Chief Justice

Charles Evans Hughes

1930’s and The New Deal• IV. The Second New Deal

A. The Alphabet Soup Continues…1.Emergency Relief Appropriations Act

a. Works Progress Administration

b. National Youth Administration

2. Resettlement Administration

3. Rural Electrification Administration

4. National Labor Relations Act (Wagner Act)

a. National Labor Relations Board

5. Social Security Act

6. Banking Reform Act of 1935

7. Bankhead-Jones Farm Tennant Act

8. Fair Labor Standards Act

9. The Soil Conservation and Domestic Allotment Act

10. Second Agricultural Adjustment Act

11. National Housing Act (Wagner-Steagall)

12. Temporary National Economic Committee

13. Food, Drug, and Cosmetic Act

WorksProgress

Administration

WPA Achievements

WPA Art: Woodburn Hall – Indiana University (Thomas Hart Benton)

Cambridge City, Indiana Post Office

Liberty, Indiana Post Office

National Labor Relations Act

Red Scare

WagnerAct

Social Security

Ida May Fuller – First Recipient

Fair Labor Standards Act

Minimum Wage and Overtime (Time and a Half) Legislation

Temporary National Economic Committee

• The Temporary National Economic Committee was established by a joint resolution of Congress on June 16, 1938 and operated until its de-funding on April 3, 1941. The TNEC's function was to study the monopoly powers and to report to Congress with its findings.

• One of the many firms brought in for questioning was Brown Brothers Harriman & Co. who employed Prescott Bush, Father of former President George H.W. Bush and grandfather of former U.S. President George W. Bush.

Musical Selections

• Hello! Ma’ Baby

• We’re In The Money

• Brother Can You Spare a Dime?

• Dust Bowl Blues

• The Ghost of Tom Joad