“Brother, Can you Spare a Dime?”

Bing Crosby, 1932

They used to tell me I was building a dream

And so I followed the mob. When there was earth to plow or guns to

bear, I was always there, right on the job They used to tell me I was building a

dream, With peace and glory ahead. Why should I be standing in line? Just waiting for bread?

Once I built a railroad. I made it run, Made it race against time. Once I built a railroad. Now it’s done Brother, can you spare a dime?

Once I built a tower up to the sun, Brick and rivet and lime. Once I built a tower. Now it’s done. Brother can you spare a dime?

Once in khaki suits, Gee, we looked swell, Full of that Yankee doodley-dum. Half a million boots went slogging

through hell, And I was the kid with the drum! Say don’t you remember? They called

me Al. It was Al all the time. Why don’t you remember? I’m your

pal. Say, buddy, can you spare a dime?

Wednesday, March 14th

Essay #2 due at the START of labs on March 15th or 16th

Remember to submit paper via blackboards Turn-It-In function before

labs and hard copy at the start of labs.

Failure to do both will result in a late penalty or not accepted at all.

Don’t forget to come into the American Heritage Review Room (173 A

SWKT) for help on papers and concepts

Open Lab Review on Saturday, March 17th from 10:00 am to 2:00 pm

in 173A, 337, and 350 SWKT

Midterm #2: March 20th – 23rd

Tuesday, March 20th, Wednesday, March 21st (NO FEE)

Thursday, March 22nd -- $5 late fee

Friday, March 23rd -- $7 late fee – must have the test in

hand by 11:00 am

Fighting the Machine

Part II

The Great Depression

The Great Depression

Possible causes of recession: Shocks to

the Market System

Overspending

Drought

Wealth gap

Burst of stock bubble

Runs on banks > bank failures

Consequences of the Great

Depression

Severe Economic Hardship

Economic Impact of the Great

Depression

5000 bank failures

25% Unemployment (50% for African

Americans: “Last hired, first fired”)

Stocks lost 75% of their value

Over 1 million people lost their homes

Comparing Post-WWII Recessions

Comparing Post-WWII Recessions

Dorothea Lange photographs of

the Great Depression

Drought and Dust Storms

75% of country impacted by drought by

1934

27 states severely affected

Dust storms widespread > “Dust bowl”

“Black Blizzard” of April, 1935

Consequences of the Great

Depression

Political Upheaval

The Election of 1932: Roosevelt defeats Hoover

Political Impact of the Great

Depression

1928 Democrat Republican

Popular Vote 15 million 21 million

Electoral Vote 87 444

Senate 39 56

House 167 267

1937 Democrat Republican

Popular Vote 23 million 16 million

Electoral Vote 472 59

Senate 60 35

House 310 117

FDR’s “New Deal”

Tools:

Leadership: Roosevelt as father figure

Experts: the “Brain Trust”

Bold experimentation: Willingness to try

anything

New Deal Approaches

The Visible Hand: Cartels

National Recovery Act (NRA)

Agricultural Adjustment Administration

(AAA)

Keynesian Economics

Keynesian Economics

“Priming the Pump”

Deficit spending during crisis

Building up budget surplus during times

of economic growth

New Deal Work Programs

Civilian Conservation Corps (CCC)

Federal Emergency Relief

Administration (FERA)

Public Works Administration (PWA)

Works Progress Administration (WPA)

New Deal Economic

Regulations

Securities Exchange Commission (SEC) Regulate stock market

National Labor Relations Board (NLRB) Mediate between workers and business

Federal Deposit Insurance Corporation (FDIC) Guarantee bank deposits

Fair Labor Standards Act Set minimum wage

Social Security Unemployment, disability, retirement insurance

The Success of the New Deal

Short-term relief (especially after start of

WWII)

Long-term protections/programs

Social Security

SEC (Securities and Exchange

Commission)

9/11: SEC shut down stock market for a week

The Long-term Impact of the

New Deal

Increase in government regulation

Reliance on deficit spending

Growth of dependency, sense of

entitlement, “rights talk”

Federal Budget as a Percentage of Gross

Domestic Product (GDP)

Progressive Era

1880 3%

1910 6%

New Deal

1929 11%

1939 22%

Civil Rights Era to Present

1960 28%

1980 37%

2009 45%

iClicker quiz: Should the government have

intervened in our current financial crisis,

the “Great Recession”?

A) Yes

B) No