1933-1941
David M Kennedy Example80,000 seat football stadium“You are now unemployed”2/3 will still be unemployed
in four yearsNext week – another 80,000
unemployedContinues for 162 weeks = 13 million unemployed
New DealNew DealFDR’s plan for ending the Great Depression
he saw a national emergencyNew Deal will permanently increase size and power of the
governmentThe National Debt reached a new highGovernment now responsible for Nation’s economy
(3R’s)
Relief - help to those who need it immediatelyRecovery - stimulate economic growthReform - prevent future economic crisis
1st 100 days (March to June 1933)
Assistance and ReformAssistance and ReformEmergency Banking Relief ActEmergency Banking Relief Actdeclared a Bank Holiday
close all banksTreasury Dept. inspected all banksthose that were solvent (good) were allowed to reopennot solvent, remained closed until good
People regain trust in banks and re-deposit money
1933 Glass – Stegall Act / FDIC reorganize bank system, strict standards to follow
creates Federal Deposit Insurance Corp.(FDIC) insures your money in the bank
Up to 5000 then, Today=250,000
1933 Federal Securities Act created Securities and Exchange Commission
(SEC) – supervises stock market, eliminates dishonest practices
Farm Relief/Rural DevelopmentFarm Relief/Rural DevelopmentAgricultural
Adjustment Act (AAA) paid farmers money to
not use parts of their land
reduced cropsraised prices of farm
products
Farm Relief/Rural DevelopmentFarm Relief/Rural Development
Tennessee Valley Tennessee Valley AuthorityAuthority TVA series of dams to
control flooding provide low cost
electrical powerProvided jobs
Employment ProjectsEmployment ProjectsCivilian Conservation Corps
(CCC)paid young men to
live/work in State/National Parks
received daily pay, free food, uniforms, lodging
planted 1.3 million trees by 1942
Employment ProjectsEmployment ProjectsFederal Emergency Relief Administration (FERA)
Helped states provide aid to the unemployed
Citizens wait outside a FERA in Calipatria, CA for relief checks
Employment ProjectsEmployment Projects
Public Works Administration (PWA)Created jobs on
government projects
PWA workers construct a public building in Hartford, Connecticut
Grand Grocery Company. Lincoln, Nebraska, 1942. http://extras.denverpost.com/archive/captured.html
CRITICS EMERGELiberals (left) felt FDR’s program was NOT doing
enough
Conservatives (right) felt that government intervention was TOO much and interfered with our free market economy
Huey LongHuey LongSenator from Louisiana
Nicknamed The Kingfishcritic of FDR
proposed a share the wealth planPut a limit on how much money the
rich could haveassassinated in 1935
About to run for president
1. A home for everyone2. Limit $$$ for rich3. Sets minimum income4. $$$ for elderly5. Education (including
college) for everyone
http://historymatters.gmu.edu/d/5109/
The Supreme CourtThe Supreme CourtBy the mid-1930s, the Supreme Court struck down
the NIRA as unconstitutional (citing too much government control over industry)
The Court also struck down the AAA on the grounds that agriculture was a local matter -- not a federal matter
The Supreme Court -- 1935
The Supreme CourtThe Supreme CourtAngered FDR
Proposed a bill to enable him to appoint more JusticesCritics said he was trying to “pack the court”
Eventually Justices began to resign FDR appointed new JusticesSupport began to favor The New Deal
Second New DealSecond New Dealmade more changes in
U.S. Economypushed for by FDR’s wife,
EleanorShe also pushed for a
bigger role in government for civil rights and women’s rights.
Employment ProjectsEmployment ProjectsWorks Progress
Admininistration (WPA)Created jobs in many
areas Ex. Construction jobs to
positions in symphony orchestras
WPA BUILDS AMERICA
850 airports, 651,000 miles of roads and
streets, and 125,000 public buildingsHired artists, writers and
photographers to create art
The Davis Street School Extension in Atlanta under construction as part of the Works Progress Administration
Program, November 2, 1936
SOCIAL SECURITY ACT
The Social Security Act, passed in 1935, had 3 parts:
Old-Age PensionUnemployment
compensationAid to families with
dependent children & disabled (welfare)
The Social Security [H. R. 7260]PREAMBLEAn act to provide for the general welfare by establishing a system of Federal old-age benefits, and by enabling the several States to make more adequate provision for aged persons, blind persons, dependent and crippled children, maternal and child welfare, public health, and the administration of their unemployment compensation laws; to establish a Social Security Board; to raise revenue; and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
Impact/Legacy of The New DealImpact/Legacy of The New Dealpermanently affected role of U.S. Government
increased size, power of Government created social welfare, regulatory agenciesAmericans accepted more involvement now expect Govern.
to solve problemssurvived an enormous crisis without stopping democracy
and freedom
Negative ImpactNegative Impact
increased federal debt ($16 billion -$42 billion)created a large deficit
FDR wins again in 1940 &1944 (four terms!)
Movies: Gone with the Wind“American classic in which a
manipulative woman and a roguish man carry on a turbulent love affair in the American south during the Civil War and Reconstruction.” IMDb
Top grossing movie of all time adjusted for inflation
Arts/LiteratureArts/Literature
artists/writers received support from New Deal
John Steinbeck“The Grapes of Wrath”
GUTHRIE’S MUSIC CAPTURES ERA
Singer Woody Guthrie used music to capture the hardship of the Great Depression
Guthrie traveled the country singing about America
Guthrie