USH2 UNIT 3: CONFLICT AND COMPROMISE SHAPES POLITICS, ECONOMICS, AND CULTURE OF THE US

LESSON 3.4 = THE GREAT DEPRESSION AND THE NEW DEAL

ACTIVATING

What did you learn yesterday in regard to labor unrest in the US?

https://www.youtube.com/watch?v=GCQfMWAikyU

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FRAYER MODEL / SPECULATION

THE CAUSES OF THE GREAT DEPRESSION ALTHOUGH THE 1920’S

WERE PROSPEROUS, SPECULATION IN THE STOCK MARKET, RISKY LENDING POLICIES, OVERPRODUCTION, AND UNEVEN INCOME DISTRIBUTION EVENTUALLY UNDERMINED THE ECONOMY AND LED TO THE GREAT DEPRESSION.

THE ELECTION OF 1928

HERBERT HOOVER, THE REPUBLICAN NOMINEE, RAN AGAINST DEMOCRAT ALFRED E SMITH, A CATHOLIC

MANY PROTESTANTS FEARED THE CATHOLIC CHURCH WOULD RULE THE WHITE HOUSE

HOOVER AND THE REPUBLICANS TOOK THE CREDIT FOR PROSPERITY OF THE 20’S, AND WON EASILY

THE STOCK MARKET SOARS

AFTER THE ELECTION, THE STOCK PRICES CONTINUED TO INCREASE

THE LATE 1920’S SAW A LONG BULL MARKET, OR PERIOD OF RISING STOCK PRICES

MANY INVESTORS BEGAN BUYING STOCK ON MARGIN = SMALL DOWN PAYMENT AND TOOK OUT LOAN TO PAY REST

IF PRICES FELL, THE STOCKBROKER ISSUED A MARGIN CALL = PAY BACK THE LOAN

POINT IS, A LOT OF PEOPLE INVESTED IN STOCK MARKET THAT SHOULD NOT HAVE!

STOCK MARKET SOARS - CONTINUED

BEFORE THE LATE 1920’S, INVESTORS WHO PAID FOR STOCK WERE INVESTING IN LONG TERM FUTURE

BY LATE 20’S, MANY BUYERS HOPED TO MAKE A QUICK PROFIT AND PRACTICED “SPECULATION”.

THE GREAT CRASH

BY 1929, THE STOCK MARKET WAS RUNNING OUT OF NEW CONSUMERS

PROFESSIONAL INVESTORS BEGAN SELLING OFF THEIR HOLDINGS

PRICES DECREASED. AND DECREASED. AND DECREASED

OCT. 29, 1929 = BLACK TUESDAY = STOCK DIVED

SERIOUSLY UNDERMINED THE ECONOMY!

AP 1: STOCK MARKET COLLAPSE

BANKS BEGIN TO CLOSE

MANY BANKS HAD LENT MONEY TO STOCK SPECULATORS, AND INVESTED DEPOSITORS MONEY IN STOCK MARKET

MANY COULD NOT REPAY LOANS, AND BANK LOST MONEY ON THEIR INVESTMENTS

BANKS HAD TO CUT BACK ON LOANS = HELPED SEND ECONOMY INTO RECESSION

BANKS CLOSE - CONTINUED

MANY BANKS WERE FORCED TO CLOSE, AND PEOPLE LOST ALL THEIR SAVINGS

BANK RUNS CAUSED MANY MORE BANKS TO COLLAPSE

AP 2: BANK FAILURES

THE ROOTS OF THE GREAT DEPRESSION

UNEVEN DISTRIBUTION OF WEALTH

CREDIT DEBT HIGH TARIFFS = FEW AMERICAN

PRODUCTS SOLD OVERSEAS (Hawley Smoot Tarrif)

MISTAKES BY THE FEDERAL RESERVE:

(1) LOW INTEREST RATES ENCOURAGED BANKS TO MAKE RISKY LOANS

(2)LOW INTEREST RATES MADE BUSINESS LEADERS THNK THE ECONOMY WAS STILL EXPANDING = OVERPRODUCTION = LAYOFFS!!

AP 3: WORD SPLASH / GREAT DEPRESSION

ACTIVITY

Boom to BustComplete question

sheet321

LEARNING LOG What is a Bull Market? What factors contributed to Herbert Hoover’s election in

1928? What effect did speculation have on the stock market? What were some of the causes of the stock market

collapse in 1929? In what two ways did the stock market collapse severly

weaken the nations banking system? What is a bank run? What were some of the causes of the Great Depression? What effect did the Hawley-Smoot Tariff have on the

Great Depression? What mistakes by the Federal Reserve contributed to the

Great Depression?

THE GREAT DEPRESSION AND NEW DEAL

Part 2

ACTIVITY

List as many causes of the Great Depression that you can.

HOOVER RESPONDS TO THE DEPRESSION

SETTING THE STAGE

PRESIDENT HOOVER TRIED TO FIX THE ECONOMY BY PROVIDING LOANS TO BANKS AND CORPORATIONS AND BY STARTING PUBLIC WORKS PROJECTS. LATER, HE RELUCTANTLY SUPPORTED DIRECT AID TO IMPOVERISHED FAMILIES. BY THE EARLY 1930’S, MORE AMERICANS WERE DEMANDING THE GOVERNMENT’S HELP.

FRAYER MODEL / PUBLIC WORKS

PROMOTING RECOVERY

PUBLICLY, HOOVER REASSURED THE PUBLIC THAT THE ECONOMY WAS ON THE RIGHT TRACK

PRIVATELY, HE WAS WORRIED.

HE BROUGHT TOGETHER BUSINESS, AS WELL AS GOV’T AND LABOR LEADERS

INDUSTRY LEADERS PROMISED NOT TO CUT FACTORIES AND WAGES. BY 1931 ALL HAD BROKEN PROMISE

PROMOTING RECOVERY - CONTINUED

HOOVER INCREASED PUBLIC WORKS, OR GOV’T FINANCED BUILDING PROJECTS TO CREATE JOBS

IT WASN’T ENOUGH, FOR WORK TO MAKE A DENT, HE NEEDED TO MASSIVELY INCREASE GOV’T SPENDING

HE WOULD EITHER HAVE TO RAISE TAXES OR RUN A DEFICIT = NEITHER OPTION DESIRABLE

TRYING TO RESCUE THE BANKS

HOOVER SET UP THE NATIONAL CREDIT CORPORATION AND THE RECONSTRUCTION FINANCE CORPORATION =

PROVIDE MONEY FOR BANKS AND BUSINESSES

NEITHER MET THE NATION’S NEEDS

AP 1 = TWITTER

In 140 characters or less, summarize Hoover’s strategy in combating the Great Depression.

DIRECT HELP FOR CITIZENS

HOOVER OPPOSED RELIEF = MONEY GIVEN DIRECTLY TO FAMILIES = RUGGED INDIVIDUALISM

BY THE SPRING OF 1932, LOCAL AND STATE GOVERNMENTS WERE RUNNING OUT OF MONEY

CONGRESS PASSED AN ACT TO PROVIDE LOANS TO STATES FOR DIRECT RELIEF

HOOVER SIGNED IT, BUT THE PROGRAM COULD NOT REVERSE THE ECONOMY’S DOWNWARD SPIRAL

BY 1931 HOVER’S NAME IS ASSOCIATED WITH FAILURE = HOOVERVILLES AND HOOVER FLAGS

AP 2; ANALOGY

Using an anaology, explain to your partner how Hoover’s lack of popularity led to the term “hoovervilles’.

IN AN ANGRY MOOD

AFTER THE STOCK MARKET CRASH OF 1929, PEOPLE WERE PREPARED TO ACCEPT BAD TIMES

BY 1931, PEOPLE WANTED MORE GOVERNMENT HELP = PEOPLE BEGAN TO REVOLT

FARMS WERE HEAVILY MORTGAGED TO PAY FOR SUPPLIES

MANY LOST FARMS WHEN CREDITORS FORECLOSED

OTHER FARMERS BEGAN DESTROYING CROPS TO RAISE PRICES

OTHERS BLOCKED FOOD DELIVERIES AND DUMPED MILK IN DITCHES

THE BONUS MARCHERS

CONGRESS HAD SCHEDULED BONUS PAYMENTS OF $1,000 TO WW1 VETERANS FOR 1945.

IN 1931, A CONGRESSMAN INTRODUCED A BILL TO DISTRIBUTE MONEY EARLY

A GROUP OF VETERANS – DUBBED THE BONUS ARMY – MARCHED TO THE CAPTITAL TO LOBBY

THE SENATE VOTED DOWN THE BILL = SOME MARCHERS REFUSED TO LEAVE = CAMPED OUT IN “HOOVERVILLES”

WHEN HOOVER ORDERED BUILDINGS TO BE CLEARED, POLICE KILLED TWO MARCHERS

THE ARMY IS CALLED IN, AND GENERAL DOUGLAS FORCED ALL MARCHERS OUT, BURNED CAMPS

NEWSREEL IMAGES OF EVENT FURTHER DAMAGED HOOVERS REPUTATION

IN THE END, HOOVER FAILED TO END THE GREAT DEPRESSION, BUT EXPANDED THE ROLE OF GOV’T MORE THAN ANY PREVIOUS

https://www.youtube.com/watch?v=9H7NhI2pn5M

AP 3

LEARNING LOG

Today I learned…………………. What are public works? What is direct relief? What two major strategies did president Hoover

use to promote economic recovery? What did WWI veterans do to try to get their

service bonuses early? How did Hoover respond to the Bonus March? How did the Bonus March affect Hoovers

presidency?

THE GREAT DEPRESSION AND NEW DEAL

Part 3

THE FIRST NEW DEAL

ACTIVATING

What made Hoover so unpopular and ineffective in dealing with the Great Depression?

SETTING THE STAGE

FRANKLIN DELANO ROOSEVELT WAS ELECTED PRESIDENT IN 1932, FOLLOWING HIS PROMISE OF A “NEW DEAL” FOR AMERICANS. IN HIS FIRST 100 DAYS IN OFFICE, HE LET LOOSE A FLOOD OF LEGISLATION DESIGNED TO RESCUE BANKS, INDUSTRY, AND AGRICULTURE AND PROVIDE JOBS FOR THE UNEMPLOYED.

ROOSEVELT’S RISE TO POWER

ROOSEVELT WAS A DISTANT COUSIN OF TR

BORN INTO A WEALTHY FAMILY, HE GRADUATED FROM HARVARD AND COLUMBIA LAW SCHOOL.

HIS EARLY POLITICAL CAREER WAS A WILD SUCCESS

AFTER BEING STRICKEN WITH POLIO IN 1921, ELEANOR ROOSEVELT KEPT HIS CAREER ALIVE WHILE HE RECOVERED

BY 1928, FDR WAS ACTIVE IN POLITICS AGAIN = GOVERNOR OF NY = OVERSAW CREATION OF A RELIEF AGENCY

HIS POPULARITY PAVED WAY TO PRESIDENCY, WINNING 1932 ELECTION BY A LANDSLIDE

FDR OFFERED “A NEW DEAL” GOVERNMENT MUST MEET NEEDS OF

PEOPLE REQUIRED DEFICIT SPENDING https://www.youtube.com/watch?v=3ccG

6PTxh9I&list=PLzlNIxHFD4Gd6-AGdS_FdGbQJ3fJESqey

AP 1

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THE HUNDRED DAYS

ROOSEVELT BEGAN HIS TERM BY SENDING BILL AFTER BILL TO CONGRESS

DURING THE FIRST 3 MONTHS, CONGRESS PASSED 15 MAJOR ACTS TO ATTACK THE ECONOMIC CRISIS = hundred days

BANKS AND DEBT RELIEF

FDR REALIZED HE MUST RESTORE PEOPLE CONFIDENCE IN BANKS

HE DECLARED A NATIONAL BANK HOLIDAY TO PREVENT BANK RUNS, THEN CALLED A SPECIAL SESSION IN CONGRES

HOUSE AND SENATE PASSED THE EMERGENCY BANKING RELIEF ACT = FEDS WOULD LICENSE ONLY HEALTHY BANKS

BANKS AND DEBT RELIEF - CONTINUED

ON MARCH 12, FDR ADDRESSED THE NATION ON THE RADIO IN THE FIRST OF MANY “FIRESIDE CHATS”

THE NEXT DAY THERE WERE FAR MORE BANK DEPOSITS THAN WITHDRAWALS

FDR PUSHED FOR REGULATION OF BANKS AND STOCK MARKET =

SECURITES ACT OF 1933 = COMPANIES MUST BE TRUTHFUL W/ INVESTORS

GLASS-STEAGALL BANKING ACT = CREATED FDIC = INSURED BANK DEPOSITS TO A SET AMOUNT

HOMEOWNERS LOAN CORPORATION = HELP PEOPLE PAY MORTGAGES

FARM CREDIT ADMINISTRATION TO HELP FARMERS REFINANCE MORTGAGES

FARMS AND INDUSTRY

GOVERNMENT PAID FARMERS NOT TO RAISE CERTAIN LIVESTOCK AND CROPS TO RAISE PRICES =

AGRICULTURAL ADJUSTMENT ADMINISTRATION

NATIONAL INDUSTRIAL RECOVERY ACT = SUSPENDED ANTI-TRUST LAWS

THE NATIONAL RECOVERY ADMINISTRATION RAN PROGRAM, EVENTUALLY RULED UNCONSTITUTIONAL

RELIEF PROGRAMS

RELIEF PROGRAMS MEANT TO GET MONEY IN THE HANDS OF INDIVIDUALS=

CIVILIAN CONSERVATION CORPS = HIRED MEN TO PLANT TREES, FIIGHT FOREST FIRES, BUILD RESERVOIRS

FEDERAL EMERGENCY RELIEF ADMINISTRATION = PROVIDED FED. MONEY TO STATE AND LOCAL GOV

PUBLIC WORKS ADMINISTRATION = BUILD HIGHWAYS, DAMS, SEWER SYSTEMS, SCHOOLS, BUILDINGS

CIVIL WORKS ADMINISTRATION = PLACED WORKERS DIRECTLY UNDER FEDERAL PAYROLL

NEW DEAL PROGRAMS INSPIRED HOPE AND RESTORED FAITH IN OUR COUNTRY!!!!

DID NOT END DEPRESSION!!!!

AP 2

THE SECOND NEW DEAL

IN RESPONSE TO CRITICISMS OF THE NEW DEAL, PRESIDENT ROOSEVELT INTRODUCED SEVERAL MAJOR PIECES OF LEGISLATION IN 1935. THESE LAWS CREATED THE WORKS PROGRESS ADMINISTRATION, THE NATIONAL LABOR RELATIONS BOARD, AND THE SOCIAL SECURITY ADMINISTRATION

CRITICISM FROM THE LEFT AND RIGHT

BY 1935, THERE WERE MANY CRITICS OF THE NEW DEAL

THE RIGHT OPPOSED FDR’S DEFICIT SPENDING = BORROWING MONEY TO FINANCE PROGRAMS

OTHER CHALLENGES CAME FROM THE LEFT = NOT DOING ENOUGH

HUEY LONG, FATHER COUGHLIN, AND FRANCIS TOWNSEND THREATENED FDR’S RE-ELECTION IN 1936

HUEY LONG = SHARE THE WEALTH FATHER COUGHLIN =

NATIONALIZE BANKING SYTEM DR. TOWNSEND = PENSIONS FOR

ELDERLY

LAUNCHING THE SECOND NEW DEAL

FDR ASKED CONGRESS FOR FUNDS TO PROVIDE WORK RELIEF AND JOBS

FDR CALLED UPON CONGRESS TO PASS NEW PROGRAMS TO KEEP VOTER SUPPORT

REFORMS FOR WORKERS

KNOWING THE LABOR VOTE WOULD BE IMPORTANT TO THE 1936 ELECTION, CONGRESS PASSED THE WAGNER ACT=

GAURANTEED WORKERS RIGHT TO FORM UNIONS AND BARGAIN COLLECTIVELY

ALSO CALLED FOR BINDING ARBITRATION = ARGUMENTS FROM BOTH SIDES HEARD BY 3RD PARTY TO DECIDE

THE WAGNER ACT STIMULATED MORE UNION ACTIVITY = UNITED MINE WORKERS

THE COMMITTEE FOR INDUSTRIAL ORGANIZATIONS ORGANIZED THE AUTO AND STEEL WORKERS

REFORMS - CONTINUED

UNION ORGANIZERS STARTED USING SIT-DOWN STRIKES = STOPPED WORK INSIDE FACTORY AND REFUSED TO LEAVE

THE UNITED AUTO WORKERS ORGANIZED MANY SUCCESSFUL SITDOWN STRIKES

THE SOCIAL SECURITY ACT

LAW MEANT TO PROVIDE MONEY AND SECURITY FOR OLDER AMERICANS AND UNEMPLOYED WORKERS

IN THE SOCIAL SECURITY SYSTEM, WORKERS PAY PREMIUMS, TAX PAID TO FEDERAL GOV

GOVERNMENT THEN DISTRIBUTES MONEY

RETIRED WORKERS OVER AGE OF 65 CAN COLLECT MONTHLY RETIREMENT BENEFIT

UNEMPLOYED COULD RECEIVE TEMPORARY INCOME

POOR MOTHERS W/ CHILDREN COULD RECEIVE WELFARE PAYMENTS

MIXED LEGACY = DIDN’T HELP FARMERS AND DOMESTIC WORKERS

HELPED ESTABLISH IDEA THAT THE GOVERNMENT SHOULD TAKE CARE OF THOSE THAT DON’T WORK

THE NEW DEAL COALITION

President Roosevelt won a landslide reelection victory in 1936. Early in his second term, however, his court packing plan and a new recession hurt him politically. The Fair Labor Standards Act, the last significant peace of New Deal legislation, provided new protection for workers.

AP 3: 5 WORDS

THE NEW DEAL COALITION

Court packing plan:

What was the coalition?

What is the legacy of the New Deal? https://www.youtube.com/watch?v=6b

Mq9Ek6jnA

ACTIVITY

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LEARNING LOG Summarize in your own words what you learned about the New Deal in 5-7

sentences. What ailment did FDR suffer from? What was FDR’s plan called to combat the Great Depression? How would you define the New Deal….what did the New Deal call for and

attempt to do? What actions did FDR take during the Hundred Days? How did FDR restore peoples confidence in Banks? How did the government regulate the stock market? How did the AAA affect farm prices? What does deficit spending mean? What groups belonged to the New Deal coalition? What is the historical significance of Roosevelt’s “court packing” plan? What caused a recession early in Roosevelt’s second term? How did the New Deal expand federal power over the economy? What were some of Roosevelt’s achievements of his second term? What were Roosevelt’s defeats during his second term? What effect did the New Deal have on America during the Great Depression?