New DealThe Problems and

Solutions of the Great Depression

Herbert Hoover

• Republican President

• Blamed for Depression because he was too hands off (laissez-faire)

• Blamed for helping rich

Bonus Army

• Veterans wanted their pensions early

• Marched and camped on White House lawn

• Hoover called out the National Guard to rid of them

• Violence erupts

Hoovervilles

• Shanty towns• One was in Central

Park• Crime, poverty, once

middle class people

Election of 1932

• Franklin Delano Roosevelt (FDR)

• President 1933-1945 (3 terms)

• Democrat• People unhappy with

Republicans• First 100 Days: trying to

pass legislation and programs

Fireside Chats

How does she defy the traditional role of the First Lady?

If you were President

How would you fix the Depression?

3 R’s

• Relief-for the people/unemployed

• Recovery-to normal economic levels

• Reform-financial system so another depression can be avoided

BANKS - PROBLEMS

• NO MONEY TO LOAN (40% go

out of business)

• PEOPLE ARE TAKING OUT THEIR SAVINGS

• (Bank Runs)

• PEOPLE CAN’T REPAY THEIR LOANS

BANKS- SOLUTIONS

• RECONSTRUCTION FINANCE CORP (RFC)

-GOVERNMENT GAVE CREDIT TO BANKS SO THEY CAN EXTEND LOANS

Gold Reserve Act 1934

• Can not pay in gold

• Money can be free floating so can print more needed to start economy flowing

• Raised value of gold

Second New Deal

• Legislation to help the common people

• 1935-1938

BANKS- SOLUTIONS

• FEDERAL INSURANCE CORP. (FDIC)

-INSURE DEPOSITS UP TO $5000

• EMERGENCY BANKING ACT/Bank Holiday

-CLOSE BANKS AND INSPECT

FARMS-PROBLEMS

• DUST BOWL

• CROP PRICES ARE LOW

• CAN’T REPAY THEIR BANK LOANS

• PROHIBITION

FARMS- SOLUTIONS

• AGRICULTURAL ADJUSTMENT ADMINISTRATION (AAA)

-PAID FARMERS NOT TO RAISE CERTAIN ANIMALS OR GROW CROPS

FARMS-SOLUTIONS

• FARM CREDIT ADMINISTRATION

(FCA)

-GAVE MONEY TO REFINANCE FARM MORTGAGES SO DON’T LOSE THEIR FARM

• Tennessee Valley Administration

-Gave electricity to farms, built dams, etc.

-Modernize faming areas in and around Tennessee

Farms-Solutions

• 21st Amendment-1933

• Rids of Prohibition

• Can sell grain for alcohol

BUSINESS-PROBLEMS

• OVERPRODUCTION/

SURPLUS

• STOCK VALUES DECREASE

• SOME PEOPLE DON’T MAKE ENOUGH TO BUY LARGE ITEMS

BUSINESS-SOLUTIONS

• NATIONAL INDUSTRIAL RECOVERY ACT (NIRA)

-SET MINIMUM WAGE

-GAVE COLLECTIVE BARGAINING RIGHTS

• Public Works Administration

-Managed public works programs of NIRA

Business-Solutions

• National Recovery Act (NRA)

• Businesses display blue eagle symbol to show they have fair labor codes

• *1933 Philly Eagles get their name

STOCK MARKET-PROBLEMS

• OVERSPECULATION

• BUYING ON MARGIN

• STOCK VALUES DROPPING

• PEOPLE PANIC AND SELL THEIR STOCK

STOCK MARKET-SOLUTIONS

• SECURITIES EXCHANGE COMMISSION (SEC)

-REGULATE AMOUNT OF STOCK CAN BE SOLD

-REGULATE BUYING ON MARGIN

WORKERS-PROBLEMS

• BOUGHT TOO MUCH STUFF ON CREDIT

• PAY CUTS/LOSS OF JOBS

WORKERS-SOLUTIONS

• CIVIL CONSERVATION CORP (CCC)

-GAVE JOBS TO YOUNG,UNMARRIED MEN TO RESTORE PARKS, FORESTS, BEACHES

WORKERS-SOLUTIONS

• WORKERS’ PROGRESS ADMINISTRATION (WPA)

-GAVE JOBS TO ARTISTS

-GAVE JOBS TO BUILD PLAYGROUNDS, HOSPITALS, SCHOOLS

• Civil Works Administration(CWA)-Jobs building highways, airports,

sewer lines

• Food Stamps 1939

Workers-Solutions

• National Labor Relations Act (NLRB or Wagner Act)

-National Labor Board enforces labor laws

• Fair Labor Standards Act

-Minimum Wage & Maximum Hours

WORKERS-SOLUTIONS

• HOME OWNERS’ LOAN CORP (HOLC)

-GAVE MONEY TO REFINANCE MORTGAGE SO DON’T LOSE HOMES

WORKERS-SOLUTIONS

• SOCIAL SECURITY ACT

-OLD AGE PENSIONS-SURVIVOR BENEFITS

FOR FAMILIES OF ACCIDENT VICTIMS

-UNEMPLOYMENT INSURANCE

-DISABILITY INSURANCE

Veterans

• Second Bonus March:

• Eleanor sets up tents for the veterans and tries to calm the situation

Opponents

• Political Left-Not doing enough

• Huey Long• Francis Townsend• Father Charles

Coughlin

Opponents

• Political right- Doing too much

• Conservatives• Wealthy• Supreme Court• Court Packing Plan• Hurt FDR’s reputation

Impact of the New Deal

• Expands President’s Power

• 1937-dipped back into a recession

• Recovered fully with WWII

Impact on Women & African Americans

• African Americans-did not end segregation, many times did not get access to programs

• Black Cabinet: “unofficial” help with the New Deal Programs

• Women-men seen as breadwinners so aid really for men

Mary McLeod Bethune

Dorothea Lange PhotosN.J. born

1939-Marian Anderson sings at Lincoln Memorial “My

Country Tis of Thee”•1st she was told she could not

sing at Constitution Hall

Depression Impact on Europe?

• Many parts of Europe fall into a deeper depression since the U.S. can not give loans to Europe and trade suffers