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The American Nation Chapter 26 The Great Depression, 1929– 1941 © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River, NJ. All rights r
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The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

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Page 1: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

The American NationThe American Nation

Chapter 26The Great Depression,

1929–1941

Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River, NJ. All rights reserved.

Page 2: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

The American NationThe American Nation

Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River, NJ. All rights reserved.

Section 1: The Great Crash

Section 2: FDR and the New Deal

Section 3: Response to the New Deal

Section 4: The Nation in Hard Times

Chapter 26: The Great Depression, 1929–1941

Page 3: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 1

The Great CrashThe Great Crash

• What were the signs of economic trouble that led to the crash of 1929 and the Great Depression?

• How did the hard times affect American families?• How did President Hoover’s response to the

depression lead to the actions of the Bonus Army?

Page 4: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 1

Signs of Economic TroubleSigns of Economic Trouble

Seven months after Herbert Hoover’s inauguration in 1929, the stock market crashed. It was the beginning of the worst economic depression in United States history. How did it happen?

Early signs of trouble• Many Americans had not shared in the prosperity of the

1920s—textile workers and coal miners, for example.• Farmers faced hard times. Over-production kept farm

prices low.• In the mid-1920s, the economy began to slow down, but no

one noticed because at that time the government did not keep detailed statistics.

Page 5: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 1

Signs of Economic TroubleSigns of Economic Trouble

The Crash• By August 1929, some investors worried that the boom might end, so

they began selling their stocks.• Other investors noticed the sell-off and began to sell their stocks,

too. Stock prices began to fall.• Many investors had bought stocks on margin, that is, they had put

down only part of the cost of the stock when they bought it and borrowed the rest from their stockbrokers. With prices falling, brokers asked investors to pay what they owed. Those who could not pay had to sell their stock to get money. Panic set in as desperate investors tried to sell millions of shares. Stock prices fell further.

• When the stock market opened on Tuesday, October 29, a wild stampede of selling took place. Stock prices plunged. Stocks that had been valuable were now suddenly worthless. The day came to be known as Black Tuesday.

Page 6: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 1

The period of economic hard times that followed the crash is known as the Great Depression. It lasted from 1929 to 1941. The stock market crash did not cause the Great Depression, but it did shake people’s confidence in the economy. What had happened to the prosperity of the 1920s?

Overproduction Farms and factories produced vast amounts of goods in the 1920s, but wages did not keep up with prices. Thus, workers could not afford to buy many goods. As orders slowed, factories closed or laid off workers.

Weakness in the banking system

• In the 1920s, banks made unwise loans. For example, they lent money to people to buy stocks. When the stock market crashed, borrowers could not repay loans. Without money from the loans, banks could not give depositors their money back if they asked for it.

• Between 1929 and 1932, more than 5,000 banks closed.

Signs of Economic TroubleSigns of Economic Trouble

Page 7: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 1

Signs of Economic TroubleSigns of Economic Trouble

Each economic disaster led to others

• The stock market crash ruined many investors. Without money from investors, businesses could not grow and expand.

• Businesses could not borrow from banks because banks were in trouble.

• As factories cut back on production, they cut wages and laid off workers. Unemployed workers had little money to spend, so demand for factory goods fell further. Many businesses went bankrupt—they were unable to pay their debts—so even more people lost jobs.

• The Great Depression led to worldwide economic crisis. American banks had loaned money worldwide. When they stopped making loans and demanded repayment of loans, banks in other countries began to fail

Page 8: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 1

Hard TimesHard Times

Unemployment 1929–1941

Page 9: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 1

Hard TimesHard Times

• In the 1930s, many Americans no longer lived on farms. Millions lived in cities and worked in factories. When factories closed, the jobless had no money for food and no land on which to grow it.

• As the depression spread, unemployment soared. By the early 1930s, one in every four workers was jobless. Others worked short hours or took pay cuts.

• On city streets, people sold apples and pencils, shined shoes, begged for money, and picked through garbage dumps.

• Marriage and birthrates dropped.• Some families split up. Fathers, and even children as young as 13 or

14 years old, left home. Jobless men and women drifted from town to town looking for work. Some “rode the rails,” living in railroad cars.

• People shared what they had. Some families doubled up, taking in relatives.

• Jobless people suffered from the feeling that they had failed.

Page 10: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 1

President Hoover ResponsesPresident Hoover Responses

• President Hoover was concerned about the suffering, but he believed that the government should not become directly involved in ending the crisis, or it might become too powerful. He thought it was up to businesses to end the downslide.

• At first, Hoover opposed government relief programs—programs to help the needy. He called on business leaders to provide jobs, instead.

• Hoover also called on private charities to help. Churches set up soup kitchens, places where the hungry could get a free meal.

• As conditions grew worse, Hoover set up public works programs to provide jobs. Public works are projects built by the government for public use, such as schools, dams, and highways.

• Hoover asked Congress to approve the Reconstruction Finance Corporation (RFC), which loaned money to banks, railroads, and insurance companies. Hoover hoped that saving these businesses would save jobs.

Page 11: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 1

President Hoovers RespondsPresident Hoovers Responds

• Hoover did more to reverse hard times than any previous President, still his efforts were too little too late.

• Many people blamed the President for doing too little. They gave the name Hoovervilles to the shacks of the homeless.

• Some World War I veterans took action to help themselves. • After the war, Congress had voted to give veterans a bonus, or sum

of money on top of their wages, to be paid in 1945. • In 1932, more than 20,000 jobless veterans marched to Washington

to demand the bonus right away. This Bonus Army camped in a tent city along the Potomac River.

• After the Senate rejected a bill that called for paying the bonuses immediately, local police tried to force the veterans to leave. Four people were killed. Finally the army moved into the camp and burned it to the ground. After the attack on the Bonus Army, Hoover lost what little public support he had left.

Page 12: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Section 1 AssessmentSection 1 AssessmentChapter 26, Section 1

One of the chief causes of the Great Depression wasa) overproduction, that is, farms and factories were producing more than

people could buy.b) the stock market crash of 1929.c) factories and farms were paying workers wages that were too high.d) farms and factories were not producing as many goods as people

wanted to buy.

As conditions grew worse, President Hoover set up public works programs in which

a) the government gave money directly to the needy. b) private charities set up places where hungry people could find meals. c) the government provided jobs by building projects for public use.d) the government loaned money to big business.

Want to connect to the American History link for this section? Click here.

Page 13: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Section 1 AssessmentSection 1 AssessmentChapter 26, Section 1

One of the chief causes of the Great Depression wasa) overproduction, that is, farms and factories were producing more than

people could buy.b) the stock market crash of 1929.c) factories and farms were paying workers wages that were too high.d) farms and factories were not producing as many goods as people

wanted to buy.

As conditions grew worse, President Hoover set up public works programs in which

a) the government gave money directly to the needy. b) private charities set up places where hungry people could find meals. c) the government provided jobs by building projects for public use.d) the government loaned money to big business.

Want to connect to the American History link for this section? Click here.

Page 14: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 2

FDR and the New DealFDR and the New Deal

• Why did voters elect Franklin D. Roosevelt President in 1932?

• What was the Hundred Days, and what were its accomplishments?

• How did the New Deal provide relief and promote recovery?

• What economic reforms were aimed at preventing another depression?

Page 15: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 2

Franklin Delanor RooseveltFranklin Delanor Roosevelt

Who was Franklin D. Roosevelt?• Franklin Roosevelt, known as FDR, came from a wealthy family. In 1905, he

married Anna Eleanor Roosevelt. • During World War I, FDR had served as assistant secretary of the navy. He

later became governor of New York.• In 1921, Roosevelt was stricken with a severe case of polio, a disease caused

by a virus. His legs were totally paralyzed.• In 1932, the Democrats made him their presidential candidate.What did Roosevelt say he would do as President?• Roosevelt declared: “I pledge myself to a new deal for the American people.”

He did not spell out what he meant, but he struck a hopeful note.• In campaign speeches, he promised to help the jobless, poor farmers, and

the elderly.• Voters responded to his confident manner and personal charm.• On his inauguration day, he spoke with optimism. Then, he issued a call to

action. People welcomed his energetic approach.

Page 16: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 2

The Hundred DaysThe Hundred Days

The new President moved forward on many fronts. He urged his staff to “take a method and try it. If it fails, admit it and try another. But above all try something.” The President sent many bills to Congress during his first three months in office. Between March 9 and June 16, 1933, Congress passed 15 major new laws. This period is called the Hundred Days.

Roosevelt’s first challenge was the nation’s crumbling banking system.• On his second day in office, he declared a bank holiday. He closed every

bank in the country for four days. • He then asked Congress to pass the Emergency Banking Relief Act. Under

this act, only banks with enough funds to meet depositors’ demands could reopen. The others had to stay closed.

• Then, he spoke to Americans by radio. The President told the people, “it is safer to keep your money in a reopened bank than under your mattress.” People began to return their money to banks.

Page 17: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 2

The Hundred DaysThe Hundred Days

• Altogether, Roosevelt made 30 radio speeches while in office. He called them fireside chats because he spoke from a chair near a fireplace in the White House.

• Roosevelt’s program for economic recovery was called the New Deal. New Deal programs had three main goals: relief for the jobless, plans for economic recovery, and reforms to prevent another depression.

• The President’s New Deal programs changed the relationship between government and the economy. From then on the federal government took an active role in managing the American Economy.

Page 18: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 2

New Deal programs tried to get people back to work.

Civilian Conservation Corps (CCC)

• The CCC hired unemployed single men between the ages of 18 and 25. They planted trees, built bridges, worked on flood-control, and developed new parks.

• The CCC served a double purpose: it conserved natural resources, and it gave jobs to young people.

Federal Emergency Relief Administration (FERA)

FERA gave federal money to state and local agencies. These agencies then distributed the money to the unemployed.

Works Progress Administration (WPA)

• The WPA put the jobless to work making clothes and building hospitals, schools, parks, and airports.

• Part of the WPA was the Federal Theatre, which put on new plays for adults and children, as well as classics.

• WPA writers collected information about American life. One group of writers interviewed African Americans who had lived under slavery.

New Deal Programs to Provide ReliefNew Deal Programs to Provide Relief

Page 19: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 2

Roosevelt tried to boost both industry and farming. His New Deal programs greatly expanded the government’s role in the economy.

National Recovery Administration (NRA)

• Congress passed the National Industrial Recovery Act (NIRA), which created the NRA.

• Under this law, each industry wrote a code for production, wages, prices, and working conditions. The NIRA tried to end price cutting and worker layoffs.

• The government encouraged people to do business with companies that displayed the NRA eagle.

• Many companies ignored the codes, however. Also, small businesses felt the codes favored the biggest firms.

Public Works Administration (PWA)

• The NIRA also set up the PWA.• The PWA hired workers for thousands of public works

projects, including Grand Coulee Dam, public schools in Los Angeles, two aircraft carriers, and a deep-water port in Brownsville, Texas.

New Deal Programs to Promote RecoveryNew Deal Programs to Promote Recovery

Page 20: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 2

Agricultural Adjustment Act (AAA)

• Under the AAA, in order to discourage overproduction, the government paid farmers not to grow certain crops.

• The government also paid farmers to plow surplus crops under the soil and to destroy surplus cows and pigs.

Rural Electrification Administration (REA)

• The REA was created to help people in rural areas get the same electrical service as people in urban areas. The number of farms with electricity rose from 10 percent to 25 percent.

• Electricity saved many farms from ruin. For example, it brought refrigeration to dairy farmers.

New Deal Programs to Promote RecoveryNew Deal Programs to Promote Recovery

Page 21: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 2

Tennessee Valley Authority (TVA)

• TVA was perhaps the boldest program of the Hundred Days.• The TVA was a daring experiment in regional planning.• To control flooding, TVA engineers built 49 dams in seven

states. The dams also provided electric power.• The TVA deepened river channels for shipping.• It planted new forests to conserve soil and developed new

fertilizers to improve farmland.• It set up schools and health centers.• Critics said that the government had no right to take business

away from private companies in the region.• Supporters said that the TVA showed how the government

could use its resources to help private enterprise.• TVA transformed a desperately poor region into a prosperous

and productive area.

New Deal Programs to Promote RecoveryNew Deal Programs to Promote Recovery

Page 22: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 2

The Tennessee Valley AuthorityThe Tennessee Valley Authority

Page 23: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 2

The New Deal aimed to prevent another depression by reforming the economic system.

Truth-in-Securities Act

This act was designed to end the risky buying and selling of stocks in hopes of making a quick profit.

Federal Deposit Insurance Corporation (FDIC)

The FDIC insured savings accounts in banks approved by the government. If a bank insured by the FDIC failed, the government would make sure depositors received their money.

Pure Food and Drug Act

In 1938, a new law extended the Pure Food and Drug Act. It protected consumers by requiring manufacturers to list ingredients. It made sure that new medicines passed tests before they were put on the market.

New Deal Reforms to Prevent Another DepressionNew Deal Reforms to Prevent Another Depression

Page 24: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 2

Section 2 AssessmentSection 2 Assessment

The New Deal changed the relationship between government and the economy. After the New Deal,

a) the government left running the economy mostly to bankers. b) private businesses cooperated to manage the nation’s economy.c) the federal government took a more active role in managing the

American economy.d) unemployed workers got the most help from private charities and not

from the government.

The Tennessee Valley Authority helped the nation recover from the Great Depression by

a) seeing to it that manufacturers listed ingredients in certain products.b) turning a desperately poor part of the country into a prosperous and

productive area.c) ending overproduction by paying farmers not to grow certain crops.d) setting rules for production, wages, prices, and working conditions.

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Page 25: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 2

Section 2 AssessmentSection 2 Assessment

The New Deal changed the relationship between government and the economy. After the New Deal,

a) the government left running the economy mostly to bankers. b) private businesses cooperated to manage the nation’s economy.c) the federal government took a more active role in managing the

American economy.d) unemployed workers got the most help from private charities and not

from the government.

The Tennessee Valley Authority helped the nation recover from the Great Depression by

a) seeing to it that manufacturers listed ingredients in certain products.b) turning a desperately poor part of the country into a prosperous and

productive area.c) ending overproduction by paying farmers not to grow certain crops.d) setting rules for production, wages, prices, and working conditions.

Want to connect to the American History link for this section? Click here.

Page 26: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 3

Response to the New DealResponse to the New Deal

• How did critics of the New Deal propose to end the depression?

• Why did FDR try to expand the Supreme Court?• What New Deal measures were meant to provide

labor reform and social security?• On balance, did the New Deal benefit or hurt the

country?

Page 27: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 3

By 1934, New Deal programs had restored hope, but they had not brought back prosperity. Some people believed that government was doing too much. Others believed that it was doing too little.

Senator Huey Long of Louisiana

• Long believed that the New Deal had not gone far enough to help the poor. He called for heavy taxes on the rich to provide every American family with a house, a car, and a decent annual income.

• People cheered. They overlooked the fact that he had used bribery and threats to win political power.

Dr. Francis Townsend

• Townsend’s plan was to give everyone over age 60 a pension of $200 a month. A pension is a sum of money paid to people on a regular basis after they retire.

• People receiving the pension would be required to retire to free up a job for someone else and spend the pension money at once to boost the economy.

Critics of the New DealCritics of the New Deal

Page 28: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 3

Liberty League This conservative group complained that the New Deal interfered too much with business and people’s lives. They said that the government was taking away basic freedoms.

Critics of the New DealCritics of the New Deal

Page 29: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 3

Dr FDR and the Supreme CourtDr FDR and the Supreme Court

• In 1935, the Supreme Court ruled that the National Industrial Recovery Act was unconstitutional. The Court said it gave too much power to the President. A year later, the Court struck down the Agricultural Adjustment Act. Then, the Court overturned eight other New Deal laws.

• Roosevelt’s plan for the Court• After his inauguration in January 1937, Roosevelt put forth a plan to

enlarge the federal courts. He called for raising the number of Supreme Court Justices from 9 to 15. This would make it possible for him to appoint six new Justices who supported his programs.

• Reaction to Roosevelt’s plan• Both supporters and critics of the New Deal accused him of trying to

“pack” the Court with Justices who supported his views. • They said his move threatened the principle of separation of powers.• Roosevelt fought for his plan for six months. Finally, he withdrew his

proposal.

Page 30: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 3

Labor ReformsLabor Reforms

• FDR supported programs to help workers. In 1935, Congress passed the National Labor Relations Act, or Wagner Act. Senator Robert Wagner of New York had sponsored the act.

• The Wagner Act protected workers from unfair management practices, such as firing a worker for joining a union.

• The act also guaranteed workers the right to collective bargaining, the process by which a union negotiates with management on behalf of a group of workers. The Wagner Act helped union membership grow.

• Union membership got a further boost when John L. Lewis set up the Congress of Industrial Organizations (CIO), which represented workers in whole industries, such as steel, automobiles, and textiles.

• Despite the Wagner Act, employers tried to stop workers from joining unions. Violence often resulted. Then workers tried a new strategy. At the Goodyear Tire Factory in Akron, Ohio, workers staged a sit-down strike. They stopped all machines and refused to leave the factory until Goodyear recognized their union.

Page 31: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 3

Social SecuritySocial Security

• The President also sought to help the elderly. In the 1930s, the United States was the only major industrial nation that did not have a formal pension program. Roosevelt and Secretary of Labor Frances Perkins pushed to enact an old-age pension.

• The new law—the Social Security Act—had three parts. It set up a system of pensions for older people. Payments from employers and employees supported this system.

• The new act set up the nation’s first system of unemployment insurance.

• The act gave states money to support dependent children and people with disabilities.

• Some liberals criticized Social Security because it did not include farm workers, domestic servants, or the self-employed.

• Some conservatives criticized Social Security as another way for the government to take money away from working people.

Page 32: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 3

The New DealThe New Deal

Civilian Conservation Corps

Program Initials Begun Purpose

CCC 1933 Provided jobs for young men to plant trees, build bridges and parks, and set up flood-control projects

Tennessee Valley Authority TVA 1933 Built dams to provide cheap electric power to seven southern states; set up schools and health centers

Federal Emergency Relief Administration

FERA 1933 Gave relief to unemployed and needy

Agricultural Adjustment Administration

AAA 1933 Paid farmers not to grow certain crops

National Recovery Administration

NRA 1933 Enforced codes that regulated wages, prices, and working conditions

Public Works Administration

PWA 1933 Built ports, schools, and aircraft carriers

Page 33: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 3

The New Deal, continuedThe New Deal, continued

Federal Deposit Insurance Corporation

Program Initials Begun Purpose

FDIC 1933 Insured savings accounts in banks approved by the government

Rural Electrification Administration

REA 1935 Loaned money to extend electricity to rural areas

Works Progress Administraion

WPA 1935 Employed men and women to build hospitals, schools, parks, and airports; employed artists, writers, and musicians

Social Security Act SSA 1935 Set up a system of pensions for the elderly, unemployed, and people with disabilities

Page 34: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 3

Effects of the New DealEffects of the New Deal

Short-Term Effects• Social Security payments

enable people to retire with pensions

• Union membership and power grow

• Farmers benefit from agricultural price supports

• The FDIC insures bank deposits

• The Securities and Exchange Commission oversees the stock market

Long-Term Effects• Social Security protects

millions of Americans but may not be able to pay full benefits in the future

• High-wage and low-wage earners continue to have different kinds of protection and benefits

• Americans have economic safeguards provided by the government

• A split between liberals and conservatives still affects public life

Page 35: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 3

The New Deal Balance SheetThe New Deal Balance Sheet

Arguments Against the New Deal• The federal government grew in size and power. Many people

complained that the government was intruding in people’s lives, threatening individual freedoms and private property. These critics called for a return to the policy of laissez faire—the idea that government should play as small a role as possible in the economy.

• Critics were alarmed because the government was spending more than it took in. This practice of deficit spending was creating a huge increase in the national debt, or the total sum of money the government owes.

• Other critics said that the New Deal had not achieved its major goal of ending the depression. Full recovery did not come until 1941, when the United States was about to fight World War II.

Page 36: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 3

The New Deal Balance SheetThe New Deal Balance Sheet

Arguments for the New Deal• Supporters noted that FDR had steered the nation through the

worst days of the depression. New Deal legislation had ended the banking crisis, protected farmers, and found work for the jobless.

• Supporters also argued that the government had a responsibility to use its power to help all of its citizens, not just businesses and the wealthy.

• Most important, supporters argued that the New Deal had saved the nation’s democratic system. Elsewhere in the world, people turned to dictators to lead them out of hard times. Roosevelt restored the nation’s economic health while preserving its liberties.

Page 37: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 3

Section 3 AssessmentSection 3 Assessment

Which of the following statements was NOT a criticism of the New Deal?a) The federal government is spending more on New Deal programs than

it is taking in, making the national debt too big.b) Under the New Deal, the government is doing too much. It is

interfering in business and people’s lives. c) The New Deal has not gone far enough to help the poor. It should take

more drastic steps.d) Under the New Deal, the government is doing what it has always done

—not getting involved in the economy.

The Social Security Act was passed toa) set up a system of pensions for older people.b) establish schools where people could learn how to behave.c) build ports, schools, and aircraft carriers.d) insure savings accounts in banks approved by the government.

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Page 38: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 3

Section 3 AssessmentSection 3 Assessment

Which of the following statements was NOT a criticism of the New Deal?a) The federal government is spending more on New Deal programs than

it is taking in, making the national debt too big.b) Under the New Deal, the government is doing too much. It is

interfering in business and people’s lives. c) The New Deal has not gone far enough to help the poor. It should take

more drastic steps.d) Under the New Deal, the government is doing what it has always done

—not getting involved in the economy.

The Social Security Act was passed toa) set up a system of pensions for older people.b) establish schools where people could learn how to behave.c) build ports, schools, and aircraft carriers.d) insure savings accounts in banks approved by the government.

Want to connect to the American History link for this section? Click here.

Page 39: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 4

The Nation in Hard TimesThe Nation in Hard Times

• What caused the Dust Bowl?• How did the depression affect women?• How did the New Deal reach out to help African

Americans and other groups of Americans?• How did the creative arts reflect the needs of

Americans during the depression?

Page 40: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 4

The Dust BowlThe Dust Bowl

• During the 1930s, states from Texas to the Dakotas suffered a severe drought. Topsoil dried out. High winds carried the soil away in blinding dust storms. The area became known as the Dust Bowl.

• What caused the Dust Bowl?• Years of overgrazing by cattle and plowing by farmers destroyed the

grasses that once held the soil in place.• The drought dried out the soil, and high winds blew it away.

• Who was affected by the dust storms?• Hardest hit were poor farmers in Oklahoma and other Great Plains

states. Hundreds packed their belongings into cars and trucks and headed west.

• They became migrant workers—people who move from one region to another in search of work.

• Once the migrants reached the West Coast, they faced a new hardship—they were not wanted. Sometimes, angry crowds blocked the way and sent the migrants away.

Page 41: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 4

The Dust BowlThe Dust Bowl

Page 42: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 4

Women in the DepressionWomen in the Depression

• Traditional roles took on added importance during the depression. Some women took in laundry or boarders to help pay the rent.

• Working women faced special problems. If jobs were available, employers hired men before they would hire women. The federal government refused to hire a woman if her husband had a job.

• Still, millions of women worked to support themselves and their families. The number of married women in the work force increased by 52 percent.

• Some women workers went on strike for better pay when employers lowered their wages.

• Eleanor Roosevelt created a new role for the First Lady. She toured the nation as the President’s “eyes and ears.” Further, she used her position to speak out for women’s rights.

Page 43: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 4

African Americans Face the DepressionAfrican Americans Face the Depression

• When hard times hit, African American workers were often the first to lose their jobs. They were often denied public works jobs, too. Some charities even refused to serve blacks.

• Eleanor Roosevelt and others close to the President urged him to improve the situation of African Americans.

• FDR invited black leaders to the White House. These unofficial advisers became known as the Black Cabinet. The President appointed Mary McLeod Bethune to head the National Youth Administration’s Division of Negro Affairs. She was the first African American to head a government agency.

• Often, Roosevelt followed the advice of the Black Cabinet. However, when African American leaders pressed him to support an antilynching law, he refused. He feared losing the support of southerners in Congress.

• Many black leaders called on African Americans to unite to obtain their civil rights—the rights due to all citizens. Slowly, they made a few gains.

Page 44: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 4

Hard times often created fear and insecurity among Americans, sometimes leading to violence and discrimination against minority groups.

Mexican Americans

• Mexican American farmworkers in the West and Southwest faced discrimination in education and jobs and at the polls.

• In good times, employers encouraged Mexicans to come north to work. When hard times struck, many Americans wanted Mexicans sent back to Mexico. More than 400,000 people were rounded up and sent to Mexico. Some of them were American citizens.

Asian Americans

• Some Americans resented Asian workers who competed with them for jobs.

• The government sought to reduce the number of Asians in the United States. In 1935, FDR signed a law that provided free transportation for Filipinos who agreed to return to the Philippines and not come back

Other Americans Face the DepressionOther Americans Face the Depression

Page 45: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 4

Native Americans

• In 1924, Congress made all Native Americans citizens. Still, most lived in poverty.

• In the 1930s, Congress passed a series of laws known as the Indian New Deal. The laws gave Native American nations greater control over their own affairs.

• John Collier, new head of the Bureau of Indian Affairs, ended the government policy of breaking up Indian landholdings.

• In 1934, Congress passed the Indian Reorganization Act (IRA). It protected and even expanded landholdings of Native American reservations.

• The Roosevelt administration let Indian reservations organize corporations and develop their own business projects.

• The government set up the Indian Emergency Conservation Work Group, which employed Indians in soil-erosion control, irrigation, and land development.

Other Americans Face the DepressionOther Americans Face the Depression

Page 46: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 4

Painting and photography

• Thomas Hart Benton painted huge murals of frontier life.• In American Gothic, Grant Wood painted an Iowa farmer and

his daughter who express the will to survive.• The government sent out photographers, including

Dorothea Lange and Margaret Bourke-White, to create a lasting record of American life during the Great Depression.

Radio • Comedians George Burns and Gracie Allen made people forget their troubles.

• Daytime radio shows—soap operas—which told stories of families, became popular.

The Arts During the DepressionThe Arts During the Depression

Artists portrayed the hardships of depression life. In his 1939 novel The Grapes of Wrath, John Steinbeck told the story of the Okies streaming over the mountains trying to find new homes in California.

Page 47: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 4

The Arts During the DepressionThe Arts During the Depression

Radio • The most famous radio broadcast took place in 1938. On Halloween night, Orson Wells presented a “newscast” based on a science-fiction novel, The War of the Worlds. Many people mistook the program for real newscast and frantically sought ways to escape the Martian invasion.

Movies • To help escape the depression, movies told optimistic stories of love and success.

• Child star Shirley Temple became hugely popular.• A popular movie was Walt Disney’s Snow White and the

Seven Dwarfs, the first full-length animated film.• In 1939, Judy Garland won American hearts in The Wizard of

Oz.• The most expensively made and most popular movie of the

1930s was Gone With the Wind. It showed the Civil War in a romantic light. It made people feel that Americans had survived hard times before. They could do it again.

Page 48: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 4

Section 4 AssessmentSection 4 Assessment

Because of the Dust Bowl, many Great Plains farmers became migrant workers, which means that they

a) asked the government to send Mexican workers back to their own country.

b) moved from one region to another in search of work.c) took jobs as erosion control agents on Indian reservations.d) found work as miners in West Virginia.

The famous novel by John Steinbeck that tells the story of suffering farmers heading west during the depression is

a) The War of the Worlds.b) American Gothic.c) Gone With the Wind.d) The Grapes of Wrath.

Want to connect to the American History link for this section? Click here.

Page 49: The American Nation Chapter 26 The Great Depression, 1929–1941 Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River,

Chapter 26, Section 4

Section 4 AssessmentSection 4 Assessment

Because of the Dust Bowl, many Great Plains farmers became migrant workers, which means that they

a) asked the government to send Mexican workers back to their own country.

b) moved from one region to another in search of work.c) took jobs as erosion control agents on Indian reservations.d) found work as miners in West Virginia.

The famous novel by John Steinbeck that tells the story of suffering farmers heading west during the depression is

a) The War of the Worlds.b) American Gothic.c) Gone With the Wind.d) The Grapes of Wrath.

Want to connect to the American History link for this section? Click here.