Sirena Rowland Block 4. How did Roosevelt help the U.S. to overcome The Great Depression? Why did the NRA fail, but the PWA work for the American.

THE GREAT DEPRESSION

AND THE NEW DEAL

Sirena Rowland

Block 4

ESSENTIAL QUESTIONS How did Roosevelt help the U.S. to

overcome The Great Depression? Why did the NRA fail, but the PWA work

for the American people? In what ways did the New Deal help the

United States? In what ways did it hurt the country?

VOCABULARY Franklin Delanor

Roosevelt Three R’s The New Deal Emergency Banking

Relief Act Federal Deposit

Insurance Company Civilian Conservation

Corps Home Owners’ Loan

Corporation Civil Works

Administration

Works Progress Administration

John Steinbeck Mary Bethune National Recovery

Administration Schechtner Case Bureau of Indian Affairs Federal Housing

Authority Social Security Act The 20th Amendment The Hatch Act

FDR: A POLITICIAN IN A WHEELCHAIR Hoover tries to get reelected. Democratic Roosevelt runs against him

(FDR). Wife Elanor Roosevelt very involved in

politics as well.

PRESIDENTIAL HOPEFULS OF 1932 Democrats and FDR speak of confidence

and a bright future. Hoover tries to cover up the past with

slogans like “It might have been worse”. The people forget about Hoover and

love FDR.

HOOVER’S HUMILIATION IN 1932 FDR crushes Hoover. Black voters now switch to the

Democratic party rather than Republicans (saw the Democrats as a way to help them not be in last place anymore).

Hoover talks crap on FDR during the lame duck period when presidents are switching over.

Unemployment at 25%, ultimate high.

FDR AND THE THREE R’S: RELIEF, RECOVERY, AND REFORM Relief is food and shelter. This is instant

fixes. Recovery gets them out of the depression. Reform keeps them out of the same

situation. The democrats ruled Congress and listened

to whatever FDR wanted. Everything got passed.

“Bank Holiday” closes banks for a week to get everything straightened out.

The New Deal has begun. This is FDR’s solution to ending the Great Depression.

ROOSEVELT MANAGES THE MONEY Emergency Banking Relief Act (the bank

holiday is set up) Roosevelt used radios to get all his news

out to the public. Many families frequently listened.

Federal Deposit Insurance Company (FDIC) is set up. This insures the money people put in the banks.

ROOSEVELT MANAGES THE MONEY CONT. No more dollar on the gold standard. People had been hoarding gold and FDR

didn’t like it. FDR increased inflation so it was easier

to pay back debts. Made gov’t pay more for gold so people

would release it. He then put US back on gold standard

with foreign countries in 1934 to fix things.

CREATING JOBS FOR THE JOBLESS Agricultural Adjustment Act (low interest

on loans to farmers) Home Owners’ Loan Corporation (homes

at lower interest rates) Federal Relief Administration (FERA)

Gave people government moneyHeaded by Harry Hopkins

Civilian Conservation Corps (CCC)Young men worked in the national forests.Basically like boy scouts, but they got paid

for it.

CREATING JOBS FOR THE JOBLESS CONT. End of the Great Migrations

Black in the south moving up to the north from 1910-1930

Civil Works AdministrationProvide jobs for the people through winterMany made-up jobs “boondoggling”

A DAY FOR EVERY DEMAGOGUE Father Charles Coughlin (catholic priest)

talks on radio about “Social Justice” Didn’t like the New Deal, made to stop his

talks by higher clergy Senator Huey Long of Louisiana wanted to

give $5000 to every poor family. IMPOSSIBLE.

Dr. Francis Townsend wants $200 to seniors a month. IMPOSSIBLE.

Works Progress Administration created. $11 billion to build public things. Gave people jobs. John Steinbeck (won Nobel Prize) originally counted dogs as a job from this.

NEW VISIBILITY FOR WOMEN Frances Perkins first female cabinet

member. (Secretary of Labor) Mary Bethune headed Office of Minority

Affairs (highest ranking in FDR’s admin.) Ruth Benedict was anthropologist with

Margaret Mead Pearl S. Buck wrote book The Good

Earth and won a Nobel peace prize in 1938

HELPING INDUSTRY AND LABOR National Recovery Administration (NRA)

to help industry and the unemployed find labor.

Maximum work hours and minimum wages created.

Labor unions allowed, and child labor slowed.

NRA eventually hated because it tried to run businesses for themselves.

The Schechtner case rules the NRA unconstitutional.

HELPING INDUSTRY AND LABOR CONT. The Public Works Administration (PWA)

is created. Created to build Public Works. Headed by Harold Ickes 21st Amendment also passed. Legalizes

beer and alcohol again.

PAYING FARMERS NOT TO FARM Agricultural Adjustment Act (AAA) paid

farmers not to farm. Animals slaughtered and made into

fertilizer. Farm incomes rose, but so did farmer

unemployment. Second Agricultural Adjustment Act

passed to have farmers plant less but also get paid by gov’t. Same concept as before.

DUST BOWLS AND BLACK BLIZZARDS Drought of 1933 in the lower Plains so

people went west to California in search of jobs.

Inspired Steinbeck’s novel The Grapes of Wrath.

Resettlement Administration tried to move farmers to better soil.

Bureau of Indian Affairs changing. Wants the indians to stay with their original ways, but many saw this as a rude thing for the whites to do.

BATTLING BANKERS AND BIG BUSINESS The Federal Securities Act requires

companies to be honest on financial reports.

Securities Exchange Commission watched the companies.

Samuel Insull had a multi-billion dollar company that crashed.

Public Utility Holding Company created to stop things like this.

THE TVA HARNESSES THE TENNESSEE RIVER Electricity companies targeted with New

Deal. They overcharged customers and wanted in to reach out to rural areas.

Tennessee Valley Authority build dams along Tennessee River to provide jobs and electricity.

2.5 million people helped.

HOUSING REFORM AND SOCIAL SECURITY Federal Housing Authority offers lower

interest on home loans. Very popular program and lasted longer

than FDR and the New Deal. Social Security sets up payment plan for

the old age, delinquent children, handicapped.

Payments from taxes. Opposed by Republicans and seen as a

socialistic measure.

A NEW DEAL FOR LABOR Many strikes, and some are violent. The

Wagner Act is passed so unions can organize and bargain with the management.

John Lewis organized the Committee for Industrial Organization (split from AfofL)

Won against General Motors and the U.S. Steel Corporation.

Fair Labor Standards Act passed with minimum wage, max working hours, and no one under 16 can work.

LANDON CHALLENGES “THE CHAMP” Republican candidate Alfred M. Landon

criticized FDR’s spending, but supported the same programs he was bashing.

American Liberty League formed with some Republicans and Democrats against socialism.

FDR defeats Landon by a landslide.

NINE OLD MEN ON THE BENCH The 20th Amendment cut the lame duck

period by 6 weeks, so the president was now sworn in during January, not March.

Congress still with FDR, but the Supreme Court not so much.

FDR wanted to make 15 justices on the court, but Congress did not agree with this (a first time disagreement) and they said NO. 9 justices is enough.

THE COURT CHANGES COURSE FDR seen as a bit of a dictator. Justice Owen J. Roberts was no longer

conservative, and started to be more liberal.

The court began to favor FDR. The Congress wasn’t so sure of FDR

anymore because of his court-packing scheme. Less New-Deal bills were passed.

TWILIGHT OF THE NEW DEAL Unemployment drops from 25 to 15

percent from in 1937, but the depression outlasted FDR’s first term.

“Roosevelt Recession” caused another fall in the economy from gov’t spending.

FDR slows spending, then increases it again. John Keynes said it was good to have “deficit spending”.

TWILIGHT OF THE NEW DEAL CONT. Congress agrees with the more

spending too. The Reorganization Act passed allowed

administrative reforms by FDR. The Hatch Act stopped any federal

official who was not one of the highest officers from campaigning.

NEW DEAL OR RAW DEAL? New Deal was a ton of spending and

almost nothing accomplished. FDR was thought to be moving towards

communism, rather than the usual capitalism.

U.S. debt rose from 19 billion to 40 billion by 1939.

Americans looked for many government handouts, without working for them.

The U.S. still in the Depression. It takes WWII to get out of it.

FDR’S BALANCE SHEET The New Deal was said to help the

Depression from getting any worse than it was.

FDR ended up hated by both socialists and capitalists. He avoided radical change during this time.

He still remembered the common man, and helped the “little people”.

FDR’s true leadership wasn’t seen until WWII.

REVIEW TIME! What union won the fight again General

Motors and the U.S. Steel Corporation? A. The AF of LB. The Committee for Industrial

OrganizationC. The Knights of LaborD. The New Deal strikers

REVIEW CONT. Answer: B

REVIEW CONT. Who was the Republican candidate that

ran against FDR for his second term in office?

REVIEW CONT. Answer: Alfred M. Landon

REVIEW CONT. Which of FDR’s programs outlasted his

presidency and The New Deal?A. The Federal Housing AuthorityB. The Public Works AdministrationC. Resettlement AdministrationD. Agricultural Adjustment Act

REVIEW Answer: A

REVIEW CONT. What were FDR’s 3 R’s?

REVIEW CONT. Answer: Relief, Reform, Recovery

REVIEW CONT. Which company helped out 2.5 million

people with electricity and jobs?A. The Federal Housing AdministrationB. The Tennessee Valley AuthorityC. The Reorganization ActD. The Hatch Act

REVIEW CONT. Answer: B