transcript
722
Depressionand FDR
1929ndash1941Why It Matters
The prosperous times of the 1920s had hidden problems These problems came out inthe open in 1929 when the nationrsquos economy crumbled The New Deal was President
Rooseveltrsquos way of dealing with the Depression
The Impact TodayThe New Deal actively involved the government in social and economic concerns and
created the Social Security system which still affects us all
The American Journey Video The chapter 25 video ldquoFear Itselfrdquoexamines the impact of FDR and his New Deal programs on the Great Depression
1929bull Stock market crashes
1932bull Unemployment
reaches 25 percent
1931bull Japan invades Manchuria
1933bull Hitler comes to power
in Germany
Hoover1929ndash1933
The
1934bull Indian
Reorganization Act Passed
CHAPTER 25 The Depression and FDR
1929 1931 1933
1930bull Droughts plague
Great Plains
1933bull Roosevelt proposes
New Deal
F Roosevelt1933ndash1945
null
40385292
723
1939bull Gone With the Wind
premieres
1935bull Italy invades
Ethiopia
1939bull Hitler invades
Poland WorldWar II begins
HISTORY
Chapter OverviewVisit tajglencoecom andclick on Chapter 25mdashChapter Overviews to pre-view chapter information
Work for the Unemployed Programs like the Works ProgressAdministration provided jobs during the Great Depression
CHAPTER 25 The Depression and FDR
1935 19391937
1936bull Spanish Civil War begins
bull German Jews lose right to vote
1935bull Social Security
Act Passed
Step 1 Fold a sheet of paper into thirds from topto bottom
Cause-Effect Study Foldable Make this foldableto help you organize what you learn about theGreat Depression and the New Deal
Reading and Writing As you read the chapteruse your foldable to record the causes and effectsof the Great Depression and the New Deal
Step 2 Open the paper and refold it into thirdsfrom side to side
Step 3 Unfold the paper and draw lines alongthe folds
Step 4 Label your table foldable as shown
This formsthree rows
Thisforms threecolumns
Fold itinto thirds
EVENT CAUSES EFFECTS
GreatDepression
NewDeal
C C
1929Stock market crashes
1930sThe Great Depressionstrikes
1932Bonus Army marcheson Washington DC
Main IdeaThe Great Depression was a world-wide business and economic slumpthat lasted through the 1930s
Key Termsstock exchange on margin defaultrelief public works
Reading StrategyOrganizing Information As you readthe section re-create the diagrambelow and explain how the GreatDepression affected each of thesegroups
Read to Learnbull what caused the stock market crashbull how the Great Depression plunged
many Americans into povertybull how Hoover reacted to the Great
Depression
Section ThemeEconomic Factors Many factors con-tributed to the economic crisis knownas the Great Depression
The GreatDepression
The bubble of American prosperity burst when the New York stock market collapsedin October 1929 Thousands of investors lost all their savings Wall Streetmdashthe nationrsquosfinancial centermdashwas in a state of shock Many Americans suddenly found themselvesout of work In 1932 the popular actor and humorist Will Rogers remarked ldquoWersquoll holdthe distinction of being the only nation in the history of the world that ever went to thepoorhouse in an automobilerdquo
The Stock MarketIn the booming economy of the 1920s confident business and government
leaders said the nation had entered a new era of prosperity for all The chairmanof General Motors advised people to invest money in the stock market everymonthmdashand many followed his advice ldquoGrocers motormen plumbers seam-stresses and waiters were in the marketrdquo reported writer Frederick LewisAllen The ldquomarket had become a national maniardquo
724 CHAPTER 25 The Depression and FDR
1928Herbert Hoover is elected president
Preview of Events
Guide to Reading
1928 1930 1932
Stock market crash headline
Effects of the Great Depression
industrial farmers home-workers owners
null
6394828
725CHAPTER 25 The Depression and FDR
Suddenly in October 1929 everythingchanged Almost overnight the value of stocksplunged Millionaires lost fortunes and thou-sands of less wealthy investors lost their sav-ings The United States was about to enter itsworst domestic crisis since the Civil War
The BoomA stock exchange is an organized system for
buying and selling shares or blocks of invest-ments in corporations In the late 1920s thevalue of stocks on the New York Stock Exchangeclimbed to dizzying heights reaching recordlevels in September 1929
Because many investors lacked the money to continue purchasing stock they bought onmargin This means they paid only a fraction ofthe stock price and borrowed the rest from theirbrokers Brokers in turn borrowed their moneyfrom banks As long as the value of stocks con-tinued to rise the buyer could sell later payback what had been borrowed and make aprofit If that value fell though investors andbrokers would not have enough cash to pay offthe loans
The CrashFearing that the boom market would end
some investors began selling their stocks in lateSeptember These sales made stock prices fallBrokers began to demand repayment of loansforcing investors who had bought on margin tosell their stock
Prices declined steadily until October 21 butmost financial experts thought the market wasexperiencing nothing more than a ldquoperiod ofreadjustmentrdquo Then for three straight daysstock prices plunged as investors sold millions ofshares each day Panicked traders sold almost 13million shares on October 24 a day that becameknown as ldquoBlack Thursdayrdquo
Following a few days of calm the decline andconfusion continued on Monday On TuesdayOctober 29 the crisis worsened By the end ofthe day more than 16 million shares hadchanged hands and stock prices had plum-meted Journalist Jonathan Norton Leonarddescribed the scene
ldquoThe selling pressure was coming fromeverywhere The wires to other cities werejammed with frantic orders to sell So were thecables radio and telephones to Europe and therest of the world Buyers were few sometimeswholly absentrdquo
The New York Stock Exchange closed for afew days to prevent more panic selling Shockspread across the country
Explaining What is buying stockldquoon marginrdquo
The Great DepressionDuring the next two years the United States
slid into a severe economic crisis called theGreat Depression The nationrsquos total economicoutput dropped 43 percent in three years from$104 billion in 1929 to $58 billion in 1932
Stock Prices 1920ndash1932
Source Standard amp Poorrsquos Security Price Index Record Prices based on combined average of 50 stocks
Dolla
rs p
er sh
are
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
1931
1932
50
100
150
200
250
300
350
400
Year
Stock prices rose dramatically in the mid-1920s causing a boom in the economy
Comparing During what years did thestock price average pass $200 per share
null
16979686
CHAPTER 25 The Depression and FDR726
While the stock market crash shook peoplersquosconfidence in the economy it did not cause theDepression Other factors working togethersent the economy into a long tailspin
An Unbalanced EconomyThe problems that led to the Great Depression
began to give out warning signals in the early1920s Farm income shrank throughout thedecade Industries also declined In the monthsbefore the stock market crash the automobileand construction industries suffered from lag-ging orders As a result employers cut wagesand laid off workers With their incomesslashed many Americans could no longer affordthe consumer goods that the nationrsquos industrieshad been churning out
Another factor that fueled the Depression wasthe growing gap in wealth between rich peopleand most Americans The prosperity of the1920s did not help all Americans equally In 1929less than 1 percent of the population ownednearly one-third of the countryrsquos wealth At thesame time about 75 percent of American fami-lies lived in poverty or on the very edge of it
Credit CrisisBorrowed money fueled much of the economy
in the 1920s Farmers bought land equipmentand supplies on credit Consumers used credit tobuy cars Investors borrowed to buy stocksMany small banks suffered when farmersdefaulted or failed to meet loan paymentsLarge banks which had bought stocks as aninvestment suffered huge losses in the stock
market crash These losses forced thousands ofbanks across the nation to close between 1930and 1933 millions of depositors lost their money
International DepressionWeaknesses in the American economy also
sapped the strength of foreign economies Euro-pean countries needed to borrow money fromAmerican banks and to sell goods to Americanconsumers in order to repay their World War Idebts to the United States During the late 1920sbank funds for loans dried up Internationaltrade slowed down because without Americanloans other nations had less money to spend
Joblessness and PovertyAs the Depression tightened its grip on the
United States millions lost their jobs In 1932 25percent of American workers were out of workThe unemployment rate remained near 20 per-cent throughout the decade Industrial cities werehardest hit Workers who managed to keep theirjobs worked only part-time or for reduced wages
The newly unemployed felt devastated NewYorker Sidney Lens who lost his job wroteabout developing
ldquoa feeling of worthlessnessmdashand loneliness I began to think of myself as a freak and misfitrdquo
Long lines of hungry people snaked throughthe streets of the nationrsquos cities They waited forhours to receive a slice of bread a cup of coffeeor a bowl of soup from soup kitchens run bylocal governments or charities
Forced to pay off debts for stocks that weresuddenly worthless Walter Thornton shownhere in October 1929 advertises his car forsale What was ldquoBlack Thursdayrdquo
History
null
17564886
Unemployed people tried to earn a few centsby shining shoes or selling apples on street cor-ners Those who had lost their homes built shel-ters out of old boxes and other debrissometimes grouped together in pitiful ldquoshanty-townsrdquo Some referred bitterly to the shanty-towns as Hoovervilles because of PresidentHooverrsquos failure to act Across the countryAmericans wondered why the president didnothing to end the suffering (See page 974 of the
Primary Sources Library for one account of life during the Depression)
Describing What percentage ofAmerican workers were out of work in 1932
Hoover and the CrisisPresident Hoover thought the economic cri-
sis was only temporary and that prosperity wasldquojust around the cornerrdquo He also believed thatthe ldquodepression cannot be cured by legislativeaction or executive pronouncementrdquo Instead
Hoover called on business leaders not to cutwages or production of goods and on charitiesto do their best for the needy Voluntary actionby private citizens and local governmentsHoover said would pull the nation throughtough times
Charities churches and volunteers workedheroically to provide reliefmdashaid for the needy So did state and local governments Some citieswithheld part of city workersrsquo wagesmdashalreadyreducedmdashto fund soup kitchens But the numberwho needed help was simply overwhelming
Government ActionEventually Hoover recognized that the federal
government had to take steps to combat theDepression In 1931 he authorized additional fed-eral spending on public worksmdashprojects such ashighways parks and librariesmdashto create newjobs State and local governments ran out ofmoney however and the combined spending byall three levels of government declined
CHAPTER 25 The Depression and FDR 727
Brother Can You Spare a Dime
ldquoBrother Can You Spare a Dimerdquo was a popular songin the 1930s during the Great Depression In those daysprices were so low that if you were lucky enough tohave a dime you could actually buy something with it
The Great Depression saw ldquoHoovervillesrdquosuch as this one in New York City andunemployed workers standing on streetcorners pleading for jobs
Listed here are Depression-eraprices for selected foods Read thelist to see how far that ldquodimerdquo fromyour ldquobrotherrdquo would go
Prices During 1932ndash1934Sirloin steak (per pound)
Chicken (per pound)
Bread (20-ounce loaf)
Potatoes (per pound)
Bananas (per pound)
Milk (per quart)
Cheese (per pound)
Tomatoes (16-ounce can)
Oranges (per dozen)
Cornflakes (8 ounces)
$029
22
05
02
07
10
29
09
27
08
null
1046973
Checking for Understanding
1 Key Terms Write a conversationbetween two friends at the time ofthe Great Depression Include theseterms in your writing stockexchange on margin defaultrelief public works
2 Reviewing Facts What did theBonus Army want Where did it setup camp
Reviewing Themes
3 Economic Factors How did buyingstocks on margin contribute to thestock market crash
Critical Thinking
4 Drawing Conclusions Do you think President Hoover followed theproper course in his handling of theGreat Depression
5 Determining Cause and Effect Re-create the diagram below and iden-tify four major factors that led to theGreat Depression
Analyzing Visuals
6 Graph Skills Study the graph on page725 When did the average price ofstocks reach its peak During whatyears did the average drop below $100per share
Hoover tried a different measure in January1932 when he asked Congress to create theReconstruction Finance Corporation (RFC)The RFC lent money to businesses It also pro-vided funds for state and local programs pro-viding relief However the RFCrsquos directors werereluctant to make risky loans and much of itsbudget remained unspent
The Bonus ArmyThe march on Washington by the Bonus
Army turned many Americans who werealready blaming Hoover for the Depressionfirmly against the president Congress had
agreed to give each veteran of World War I a$1000 bonus in 1945 Jobless veterans wantedthe bonuses right away In the summer of 1932they formed the Bonus Army and marched toWashington DC to demand their money Atits peak the Bonus Army included about 20000veterans Congress and the president turned theveterans down Most of the veterans left butabout 2000 joined by their families vowed toremain until the bonuses were paid When thepolice tried to disband the veteransrsquo camp con-flict broke out and two people were killed
Hoover responded by calling in the army Withtanks machine guns and cavalry troops led byArmy chief of staff General Douglas MacArthurand his aide Dwight D Eisenhower entered theprotestersrsquo camp Veterans and their families fledin terror as the troops burned their camp
Hoover announced that ldquoa challenge to theauthority of the United States government hasbeen metrdquo Many Americans were horrified thatthe government had attacked its own citizensparticularly war veterans Hoover seemed colddistant and out of touch with ordinary peopleMany people thought the time had come for achange in government
Explaining What did the Recon-struction Finance Corporation provide
728 CHAPTER 25 The Depression and FDR
Great Depression
Bonus Army set up its camp near the Capitol
Economics Using the food priceson page 727 make a grocery list ofwhat you could buy on a budget of$300 a week Make another list of which of the same items youcould buy today if you only had$300 a week
Checking for Understanding
1 Key Terms Write a conversationbetween two friends at the time ofthe Great Depression Include theseterms in your writing stockexchange on margin defaultrelief public works
2 Reviewing Facts What did theBonus Army want Where did it setup camp
Reviewing Themes
3 Economic Factors How did buyingstocks on margin contribute to thestock market crash
Critical Thinking
4 Drawing Conclusions Do you think President Hoover followed theproper course in his handling of theGreat Depression
5 Determining Cause and Effect Re-create the diagram below and iden-tify four major factors that led to theGreat Depression
Analyzing Visuals
6 Graph Skills Study the graph on page725 When did the average price ofstocks reach its peak During whatyears did the average drop below $100per share
Hoover tried a different measure in January1932 when he asked Congress to create theReconstruction Finance Corporation (RFC)The RFC lent money to businesses It also pro-vided funds for state and local programs pro-viding relief However the RFCrsquos directors werereluctant to make risky loans and much of itsbudget remained unspent
The Bonus ArmyThe march on Washington by the Bonus
Army turned many Americans who werealready blaming Hoover for the Depressionfirmly against the president Congress had
agreed to give each veteran of World War I a$1000 bonus in 1945 Jobless veterans wantedthe bonuses right away In the summer of 1932they formed the Bonus Army and marched toWashington DC to demand their money Atits peak the Bonus Army included about 20000veterans Congress and the president turned theveterans down Most of the veterans left butabout 2000 joined by their families vowed toremain until the bonuses were paid When thepolice tried to disband the veteransrsquo camp con-flict broke out and two people were killed
Hoover responded by calling in the army Withtanks machine guns and cavalry troops led byArmy chief of staff General Douglas MacArthurand his aide Dwight D Eisenhower entered theprotestersrsquo camp Veterans and their families fledin terror as the troops burned their camp
Hoover announced that ldquoa challenge to theauthority of the United States government hasbeen metrdquo Many Americans were horrified thatthe government had attacked its own citizensparticularly war veterans Hoover seemed colddistant and out of touch with ordinary peopleMany people thought the time had come for achange in government
Explaining What did the Recon-struction Finance Corporation provide
728 CHAPTER 25 The Depression and FDR
Great Depression
Bonus Army set up its camp near the Capitol
Economics Using the food priceson page 727 make a grocery list ofwhat you could buy on a budget of$300 a week Make another list of which of the same items youcould buy today if you only had$300 a week
null
124444855
729
1934Securities and ExchangeCommission is created
Main IdeaPresident Franklin Roosevelt promisedto take action to get America out ofthe Great Depression
Key TermsHundred Days New Deal workrelief subsidy
Reading StrategyClassifying Information As you readthe section re-create the diagrambelow and identify each of the listeditems
Read to Learnbull how Roosevelt tried to restore the
confidence of the American peoplebull what programs were created in
FDRrsquos first 100 days
Section ThemeGovernment and Democracy NewDeal legislation affected banking thestock market industry agricultureand welfare
Rooseveltrsquos New Deal
CHAPTER 25 The Depression and FDR
What is it
The New DealTVACCCFDIC
1933Programs during the HundredDays improve the economy
Preview of Events
Guide to Reading
1932 1933 1934
Roosevelt inauguralbutton 1933
Washington DC was dark and dreary on March 4 1933 President Franklin DRoosevelt stood bareheaded in the chilly wind tightly gripping the sides of the readingstand in front of him His face was stern as he began his Inaugural Address ldquoThisnation asks for action and action nowrdquo he cried
As Roosevelt spoke his voice had an electric effect on the masses of people beforehim The crowd shouted back its approval To millions of despairing Americans Rooseveltrsquos voice was the symbol of hope It seemed that the gloom was starting to lift
Franklin D RooseveltWith the nationrsquos economy crumbling the Democrats believed they had a
good chance of winning the presidency Meeting in Chicago in June 1932 theDemocrats chose Governor Franklin D Roosevelt of New York as their can-didate Rooseveltmdashor FDR as he was calledmdashseemed to bring a freshapproach to politics
1932Franklin Roosevelt iselected president
null
7481477
When Roosevelt learned that he had beennominated he flew to Chicago to deliver thefirst acceptance speech ever made at a conven-tion He told the Democratsmdashand the nationmdashldquoIpledge you I pledge myself to a new deal forthe American peoplerdquo
As the Republicans and Democrats held theirconventions in 1932 the Depression grew worseThe Republicans met in Chicago and nominatedPresident Hoover for reelection With the coun-tryrsquos economy in trouble Hooverrsquos chances forwinning reelection looked poor
Early Years of PromiseFranklin D Roosevelt a distant cousin of for-
mer president Theodore Roosevelt came from awealthy family Ambitious and charming FDRdecided on a career in politics In 1905 he mar-ried Theodore Rooseveltrsquos niece Eleanor Roose-velt and she became a tireless partner in hispublic life
FDRrsquos political career began with his electionto the New York state senate in 1910 In 1913 hebecame assistant secretary of the navy and in1920 the Democrats chose him as their candidate
for vice president The Democrats lost the elec-tion to Warren G Harding but Franklin Roose-veltrsquos political future seemed bright
Then in 1921 polio struck Roosevelt paralyz-ing both his legs Yet FDRrsquos will remained strongldquoOnce I spent two years lying in bed trying tomove my big toerdquo he said later ldquoAfter that any-thing else seems easyrdquo
Return to PoliticsAfter a few years FDR decided to return to
politics He never publicly mentioned his para-lyzed legs and he asked journalists not to photo-graph his leg braces or wheelchair Electedgovernor of New York in 1928 and reelected in1930 Roosevelt earned a national reputation as areformer He drew on the advice of a group ofprogressive lawyers economists and socialworkersmdashknown as the Brain Trustmdashto developrelief programs for the state When he decided torun for president he counted on the Brain Trustto help him guide the nation to recovery
730 CHAPTER 25 The Depression and FDR
President Roosevelt explained his policies directly to the people in his ldquofireside chatsrdquo over the radio What effect didRooseveltrsquos radio talks have on the American people
History
Franklin Roosevelt who was paralyzed bypolio as a young man is shown with Ruth Biethe daughter of the caretaker at FDRrsquos estate
null
12820628
During the 1932 campaign Roosevelt declaredthat ldquothe country needs and demands boldpersistent experimentationrdquo He also spoke oftrying to help ldquothe forgotten man at the bottom ofthe economic pyramidrdquo
Identifying Who were the Republi-can and Democratic candidates for president in 1932
FDR Takes ChargeThe American people were charmed by Roose-
veltrsquos confidence and his promise of action OnNovember 8 they went to the polls and electedRoosevelt in a landslide He captured all but sixstates and received 472 of the 531 electoral votesDemocrats won important victories in Congressalso People clearly wanted a change
In the months before Roosevelt took officethe economy worsened Protests in some citieserupted into violence Meanwhile the bankingsystem was collapsing As more people rushed
to withdraw their deposits more and morebanks went out of business People becamedesperately afraid
At his inauguration on March 4 1933 Roose-velt told the nation that ldquothe only thing we haveto fear is fear itselfmdashnameless unreasoningunjustified terrorrdquo He reassured people andpointed out that the ldquogreatest primary task is toput people to workrdquo He also promised immedi-ate action on the banking crisis
Restoring Confidence in BanksTwo days after the inauguration Roosevelt
ordered all banks closed for four days He alsocalled Congress to a special session at which hepresented the administrationrsquos plan for handlingthe banking problem About seven hours laterCongress had passed and Roosevelt had signedthe Emergency Banking Relief Act The act pro-posed a wide range of presidential powers overbanking and set up a system by which bankswould open again or be reorganized By mid-March half of the nationrsquos banks had reopened
Flood victims stand in line waiting for food and clothing They are a sharpcontrast to the happy family on the billboard
null
12225068
At the end of his first week in office FDR assuredAmericans in a radio broadcast ldquothat it is safer tokeep your money in a reopened bank than underthe mattressrdquo The next day deposits far exceededwithdrawals The banking crisis had ended
The presidentrsquos radio talk was the first ofmany He called these informal talks firesidechats because he sat next to a fireplace in theWhite House as he spoke These fireside chatshelped FDR gain the publicrsquos confidence
The Hundred DaysAfter solving the banking crisis President
Roosevelt quickly tackled other areas of nationalconcern He sent Congress a stack of proposals
The New Deal
Civilian Conservation Corps CCC 1933 Provided jobs for young men to plant trees and build bridges
Tennessee Valley Authority TVA 1933 Built dams to provide cheap electric power to seven Southernstates set up schools and health centers
Federal Emergency Relief FERA 1933 Gave relief to unemployed and needyAdministration
Agricultural Adjustment AAA 1933 Paid farmers not to grow certain cropsAdministration
National Recovery Administration NRA 1933 Helped set standards for production prices and wages
Public Works Administration PWA 1933 Built ports schools and aircraft carriers
Federal Deposit Insurance FDIC 1933 Insured savings accounts in banks approved by theCorporation government
First New Deal Program
Second New Deal Program
Initials Begun Purpose
Rural Electrification Administration REA 1935 Loaned money to extend electricity to rural areas
Works Progress Administration WPA 1935 Employed men and women to build hospitals schools parksand airports employed artists writers and musicians
Social Security Act SSA 1935 Set up a system of pensions for the elderlyunemployed and people with disabilities
Farm Security Administration FSA 1937 Lent money to sharecroppers set upcamps for migrant workers
Fair Labor Standards Act FLSA 1938 Established minimum wages andmaximum hours for all businessesengaged in interstate commerce
Under the Roosevelt New Deal during the 1930s the federal governmentassumed responsibility for the welfare of many citizens
Analyzing Information Why did setting up the FDIC help all Americans
732 CHAPTER 25 The Depression and FDR
for new programs to deal with the nationrsquos eco-nomic problems In all Roosevelt sent 15 pro-posals to Congress and Congress approvedevery one of them
Lasting about three months the special ses-sion of Congress that Roosevelt called to launchhis programs came to be called the HundredDays It was an amazingly productive timeOptimism swept through the capital JournalistThomas Stokes recalled ldquoThe gloom the tense-ness the fear of the closing months of theHoover administration had vanishedrdquo
Identifying What law set up a planto reorganize the nationrsquos banks
null
7627756
733CHAPTER 25 The Depression and FDR
The New Deal Takes ShapeThe new laws that Congress passed during
the Hundred Daysmdashand in the months andyears that followedmdashcame to be called the NewDeal New Deal laws and regulations affectedbanking the stock market industry agriculturepublic works relief for the poor and conserva-tion of resources These laws changed the face ofAmerica dramatically
Frances Perkins Rooseveltrsquos secretary oflabor later recalled those early exciting days ofthe New Deal
ldquoIn March 1933 the New Deal was not aplan It was a happy phrase [FDR] hadcoined during the campaign It made peoplefeel better and in that terrible period of depres-sion they needed to feel betterrdquo
EconomicsJobs and Relief
Roosevelt gave high priority to creating jobsHe planned to help the unemployed with workrelief programs giving needy people govern-ment jobs During his first month in office FDRasked Congress to create the Civilian Conserva-tion Corps (CCC) Over the next 10 years theCCC employed about 3 million young men towork on projects that benefited the publicplanting trees to reforest areas building leveesfor flood control and improving national parks
Roosevelt made aid to the poor and sufferinganother priority FDR established the FederalEmergency Relief Administration (FERA) togive money to the states for use in helping peo-ple in need Roosevelt appointed Harry Hop-kins a New York social worker to lead theFERA Hopkins became one of FDRrsquos closestadvisers and got involved in several other NewDeal programs
Roosevelt did not forget agriculture On May12 Congress passed the Agricultural Adjust-ment Act (AAA) The act had two goals toraise farm prices quickly and to control pro-duction so that farm prices would stay up overthe long term
$
In the AAArsquos first year though the supply offood outstripped demand The AAA could raiseprices only by paying farmers to destroy cropsmilk and livestock To many it seemed shockingto throw food away when millions of peoplewent hungry The New Dealers claimed theaction was necessary to bring prices up
To control production and farm prices theAAA paid farmers to leave some of their landuncultivated If market prices of key farm prod-ucts such as wheat and cotton fell below a cer-tain level the AAA would pay farmerssubsidiesmdashgrants of moneymdashto make up thedifference In the first three years of the NewDeal farmersrsquo incomes rose by about 50 percentThe Supreme Court ruled that the AAA wasunconstitutional in United States v Butler (1936)for invading the reserved powers of the states
Rebuilding a RegionOne of the boldest programs launched during
the Hundred Days was the Tennessee ValleyAuthority (TVA) The TVA aimed to control flood-ing promote conservation and development andbring electricity to rural areas along the TennesseeRiver By building new dams and improving oth-ers the TVA ended the regionrsquos disastrous floodsAnd with hydroelectric powergenerating affordable electricitythousands of farms and homes insome Southern states were wiredfor electricity for the first time
Some critics charged thatfunds for the TVA should be usedto support programs nation-wide Power companiesalso attacked the programas unfair and communis-tic When the spring rainscame in 1937 however thesystem workedmdashthe damsprevented the TennesseeRiver from flooding Inthe end most observersagreed that the TVAwas an example ofsuccessful social andeconomic planning
Driller Fort LoudonDamTennessee
null
2233531
Checking for Understanding1 Key Terms Write sentences about
the New Deal use these vocabularyterms Hundred Days work reliefsubsidy
2 Reviewing Facts For what regiondid the Tennessee Valley Authorityprovide electricity
Reviewing Themes3 Government and Democracy
Describe the actions that Roosevelttook to restore confidence in banksand in the stock exchange
Critical Thinking4 Comparing Compare Hooverrsquos and
Rooseveltrsquos programs to combat theDepression
5 Organizing Information Re-createthe diagram below and list threeNew Deal programs that Rooseveltestablished to create jobs or aid society as a whole
Analyzing Visuals6 Chart Skills Examine the table on
page 732 Which programs were setup primarily to help farmers andrural areas What was the purpose of the TVA
Helping Business and LaborOn the last day of the Hundred Days Congress
passed the National Industrial Recovery Act(NIRA) which Roosevelt called ldquothe most impor-tant and far-reaching legislationrdquo ever passed inthe United States The NIRA aimed to boost theeconomy by helping business regulate itself
The NIRA crea ted the National RecoveryAdministration (NRA)which encouraged busi-nesses to set a minimumwage and abolish childlabor In addition theNRA tried to set upcodes governing pricingand other practices forevery industry HughJohnson a former generalnamed to head the NRA launched a campaignto promote the agency Before long the agencyrsquosblue eagle symbol and sloganmdashldquoWe Do OurPartrdquomdashappeared everywhere
Another program that the NIRA launched wasthe Public Works Administration (PWA) Its goalwas to stimulate the economy through the build-ing of huge public works projects that neededlarge numbers of workers The agency employedpeople to work on the construction of roads ship-yards hospitals city halls and schools Many
PWA projectsmdashsuch as New York Cityrsquos LincolnTunnel and Kentuckyrsquos Fort Knoxmdashstill stand ThePWA spent its funds slowly though and did nothave much immediate impact on unemployment
To avoid future banking crises Rooseveltcalled for reform of the nationrsquos financial systemCongress established the Federal Deposit Insur-ance Corporation (FDIC) to insure bank depositsThe government guaranteed that money placedin a bank insured by the FDIC would not be lostif the bank failed
Congress also passed a law regulating the saleof stocks and bonds and created the Securitiesand Exchange Commission (SEC) This 1934law gave the SEC the power to punish dishoneststockbrokers and speculators
Assessing the Early New DealThe New Deal did not cure the nationrsquos ills
The Depression dragged on bringing continuedhardship Farmers continued to lose their landUnemployment remained at high levels Manypeople still struggled to survive and to makeends meet
Yet the darkest days had passed The panic of1932 and 1933 had receded and the flurry ofactivity from the nationrsquos capital had restoredsome measure of confidence
Describing What were the goals of the Agricultural Adjustment Act
734 CHAPTER 25 The Depression and FDR
Government Create a table thatlists the positive and negativeaspects of the New Deal farm program Summarize in a briefparagraph what conclusions youcan draw from your table
New Deal programs
The Blue Eagle symbol of the NRA
null
16201161
735
1932Hattie Caraway is electedfirst woman senator
1934Indian Reorganization Act is passed
Main IdeaThe Depression was a difficult timefor Americans because many facedunemployment and the loss of landand other property
Key TermsDust Bowl migrant worker
Reading StrategyClassifying Information As you readthe section re-create the diagrambelow and describe how differentgroups of people coped with difficulttimes
Read to Learnbull how the Depression affected
minority groupsbull what radical political movements
gained influence
Section ThemeEconomic Factors The Depressionmade life difficult for all Americansand many migrated to other regionshoping for a better life
Life During the Depression
CHAPTER 25 The Depression and FDR
ldquoThey hung around street corners and in groups They felt despised they wereashamed of themselves They cringed they comforted one another They avoidedhomerdquo With these words a social worker described unemployed Pennsylvania coalminers Their pain was echoed across America by countless men women and childrenwhose hopes were being crushed by the Depression
Hard Times in AmericaNot every worker lost a job during the Depression Not every family needed
aid Most Americans however had to make do with less less income less foodand less security
Some families survived the Depression by pulling together Parents and chil-dren shared homes with grandparents or other relatives to save moneyAlthough the birthrate had decreased school enrollment actually increasedbecause fewer young people could find work they remained in school
1939Gone With the Windfilm is released
Soup kitchen
Preview of Events
Guide to Reading
1930 1935 1940
Effects of the Great Depression
Hispanic Great Plains AfricanAmericans farmers Americans
null
672919
736 CHAPTER 25 The Depression and FDR
African AmericanCharles Drew was bornand raised in the segre-gated city of WashingtonDC and refused to letracial prejudice stop himHis early interests werein education particularlyin medicine but he wasalso an outstanding ath-lete He starred at DunbarHigh School in footballbaseball basketball andtrack and field
He graduated fromAmherst College in Mass-achusetts and earned his medical degree atCanadarsquos McGill Univer-sity In the 1930s Drewconducted pioneeringresearch on blood plasmaand he created the modelfor blood and plasma stor-age that is used by theRed Cross today Whenthe United States enteredWorld War II Drew was
in charge of the militaryrsquosblood plasma program
Drewrsquos researchchanged transfusionmethods so that storedplasma could be given to soldiers wounded onthe battlefieldmdasha med-ical advance that savedmany lives Drew laterresigned to protest themilitaryrsquos decision tomaintain racially segre-gated blood banks
The strain shattered other families howeverNearly two million menmdashand a much smallernumber of womenmdashabandoned their homesThey took to the road drifting to warm placessuch as Florida and California
Women Go to WorkMany people thought that women should
not hold jobs as long as men were unemployedDespite such prejudices desperation drove alarge number of women into the workforceMany families survived on a womanrsquosincomemdasheven though American womenearned less than men
Women also worked harder at home to makeends meet Instead of buying clothes or gro-ceries they sewed their own clothing bakedtheir own bread and canned their own vegeta-bles Some women started home businessessuch as laundries or boardinghouses
The New Deal era opened doors for womenin public life President Roosevelt appointed thefirst woman ever to serve in the cabinet FrancesPerkins He also named more than 100 otherwomen to federal posts OnemdashEllen Sullivan
Woodwardmdashstarted a program to give jobs towomen In 1932 Hattie Caraway of Arkansasbecame the first woman to be elected to theUnited States Senate
The best-known woman in American publiclife was Eleanor Roosevelt who often acted asher husbandrsquos ldquoeyes and earsrdquo She made manyfact-finding trips for the president because poliohad limited his mobility Mrs Roosevelt cam-paigned vigorously for women and minoritiesand other humanitarian concerns She wrote adaily newspaper column and used her bound-less energy to meet people all over the country
Identifying Who was the firstwoman to serve in a presidentrsquos cabinet How many otherwomen were appointed to federal posts at this time
The Dust BowlTo make matters worse the southern Great
Plains suffered an environmental disaster dur-ing the 1930s Hardest hit were western Kansasand Oklahoma northern Texas and eastern Col-orado and New Mexicomdashthe region dubbed theDust Bowl
null
121362564
737CHAPTER 25 The Depression and FDR
GeographyWhat Caused the Dust Bowl
Using new technology such as tractorsand disc plows farmers had cleared mil-lions of acres of sod for wheat farming Theydid not realize that the roots of the grass hadheld the soil in place When a severedrought struck in 1931 crops died and thesoil dried out Strong prairie winds simplyblew the soil away
Each storm stripped away more soil Onestorm in 1934 carried about 300 million tons ofsoil depositing some of it on ships 300 milesout in the Atlantic Ocean The droughtmdashandthe stormsmdashcontinued for years
People called the storms ldquoblack bliz-zardsrdquo A Texas boy wrote
ldquoThese storms were like rolling black smokeWe had to keep the lights on all day We wentto school with headlights on and with dustmasks onrdquo
Thousands of Dust Bowl farmers went bank-rupt and had to give up their farms About400000 farmers migrated to California andbecame migrant workers moving from place toplace to harvest fruits and vegetables So manycame from Oklahoma that people called themldquoOkiesrdquo One observer described their arrival
ldquoThey came in decrepit [broken-down]square-shouldered [cars] that looked likerelics of some antique culture piled highwith mattresses and cooking utensils and chil-dren with suitcases jugs and sacks strapped tothe running boardsrdquo
Explaining Where did many families move to escape the Dust Bowl
The Plight of MinoritiesThe Depression fell especially hard on the
minority groups who were already on the lowerrungs of the American economic ladder Thesegroups included African Americans NativeAmericans and Hispanic Americans
African AmericansIn the South more than half of the African
American population had no jobs African Amer-icans who lived and worked in Southern citiesfound their jobs taken by white people who hadlost theirs The collapse of farm prices crushedAfrican American farmers
Seeking more opportunity about 400000African American men women and childrenmigrated to Northern cities during the decade ofthe 1930s These migrants did not fare much bet-ter there however The jobless rate for AfricanAmericans remained high
African Americans did make some politicalgains during the Depression President Roose-velt appointed a number of African Americansto federal posts He had a group of advisersknown as the Black Cabinet that includedRobert Weaver a college professor and RalphBunche who worked for the State DepartmentMary McLeod Bethune who establishedBethune-Cookman College in Florida alsoserved as an adviser
African Americans continued to fight againstprejudice In 1939 opera singer Marian Ander-son was denied permission to sing in Constitu-tion Hall because she was black Mrs Roosevelthelped arrange for Anderson to give a historicconcert at the Lincoln Memorial
Dorothea Lange photographed a homeless Oklahomafamily during Dust Bowl days
null
18285936
Native AmericansThe 1930s did bring some benefits to Native
Americans The new head of the Bureau ofIndian Affairs John Collier introduced a set ofreforms known as the Indian New Deal
Collier halted the sale of reservation land gotjobs for 77000 Native Americans in the CivilianConservation Corps and obtained Public WorksAdministration funds to build new reservationschools Most important he pushed Congress topass the Indian Reorganization Act of 1934This law restored traditional tribal governmentand provided money for land purchases toenlarge some reservations
Hispanic AmericansAt the beginning of the 1930s about two
million people of Hispanic descent lived in theUnited States mostly in California and theSouthwest Many had emigrated from MexicoThey worked as farmers migrant workers andlaborers As the Great Depression deepenedresentment against Mexican Americans grewMany lost their jobs Politicians and laborunions demanded that Mexican Americans beforced to leave the United States
The government encouraged Mexican immi-grants to return to Mexico Authorities gavethem one-way train tickets to Mexico or simplyrounded them up and shipped them southacross the border More than 500000 MexicanAmericans left the United States during the earlyyears of the Depression often involuntarily
Explaining What was the purposeof the Indian Reorganization Act
Radical Political MovementsHard times helped radical political groups
gain ground in the United States during the1930s Radical groups advocate extreme andimmediate change Socialists and Communistsviewed the Depression not as a temporary eco-nomic problem but as the death of a failed sys-tem They proposed sweeping changes
Communism attracted workers minority-rights activists and intellectuals with promisesto end economic and racial injustice Althoughboth socialism and communism had significantinfluence neither became a major political forcein the United States
738 CHAPTER 25 The Depression and FDR
Thrills and ChillsYoung people flocked to the movies to see cartoons and monsters
EscapeRadio programs comics like LittleOrphan Annie (right) and new novelty games provided an escape from the harsh reality of the Great Depression
Teen Entertainment
For a teenager in the 1930s a dime wouldbuy a round trip fare on a streetcar
or two apples from a corner vendor or a malt at thedrugstore fountain or an afternoon at the movies
null
13301286
Another political development that caughtthe attention of many Americans was the rise offascists in Germany and Italy Fascism is a polit-ical philosophy that holds the individual sec-ond to the nation and advocates government bydictatorship In 1936 the Spanish Civil Warbegan Germany and Italy supported fascistswho were trying to take over the Spanish gov-ernment Although the United States remainedneutral more than 3000 Americans went toSpain to fight the fascists
Explaining What is fascism
Entertainment and the ArtsThe Depression produced two separate
trends in entertainment and the arts One wasescapismmdashlight or romantic entertainment thathelped people forget about their problems Theother was social criticismmdashportraits of the injus-tice and suffering of Depression America
Radio became enormously popular during the1930s Daytime dramas sponsored by laundrydetergents earned the nickname ldquosoap operasrdquoAdventure programs such as Dick Tracy The LoneRanger and Superman had millions of listeners asdid variety shows featuring comedians GeorgeBurns Gracie Allen and Jack Benny
Checking for Understanding1 Key Terms Define Dust Bowl and
migrant worker2 Reviewing Facts Describe three of
the benefits that Native Americansreceived from the Indian New Dealincluding the Indian ReorganizationAct
Reviewing Themes3 Economic Factors Why did many
African Americans migrate from theSouth to the North during the 1930s
Critical Thinking4 Determining Cause and Effect Why
did radical political movements gainpopularity during the 1930s
5 Classifying Information Re-createthe diagram below and list theaccomplishments of three individualsdiscussed in Section 3
Analyzing Visuals6 Picturing History Look at the pho-
tograph by Dorothea Lange on page737 Write a paragraph in which you describe why the family is leaving its home and where they are going
CHAPTER 25 The Depression and FDR 739
Descriptive Writing Think of amodern story idea that would beconsidered social criticism Usingthe outline of the story write ashort scene in which the characterspoint out a flaw in their society
Individual Accomplishments
1
2
3
At the MoviesEvery week about 85 million people went to
movie theaters usually to escape their cares andworries Some movies did explore serious topicsFor example The Grapes of Wrath (1940) was ascreen version of John Steinbeckrsquos powerfulnovel about farm families fleeing the Dust BowlThe 1939 film of Margaret Mitchellrsquos novel GoneWith the Wind set in the Civil War era also por-trayed people coping with hard times
Images of the TimesMany writers and painters portrayed the
grim realities of Depression life RichardWrightrsquos novel Native Son told the story of anAfrican American man growing up in ChicagoWriter James Agee and photographer WalkerEvans depicted poor Southern farm families inLet Us Now Praise Famous Men
Photographer Margaret Bourke-White alsorecorded the plight of American farmers andDorothea Lange took gripping photographs of migrant workers Painters such as GrantWood and Thomas Hart Benton showed ordi-nary people confronting the hardships ofDepression life
Analyzing Would you considerGone With the Wind social criticism or escapism Explain
null
15051662
Dodge City
Los Angeles
Portland
SanFrancisco
W A S H I N G T O N
O R E G O N
K A N S A S
U T A H
I D A H O
N O R T H D A K O T A
S O U T H D A K O T A
N E B R A S K A
O K L A H O M A
M O N T A N A
W Y O M I N G
C O L O R A D O
N E W M E X I C O
A R I Z O N A
CA
LI
FO
RN
IA
T E X A S
ampGEOGRAPHY HISTORY
This desperate mother soldthe tires from her car tobuy food for her children
In
ch
es
0
10
1930 1935 1940
20
30
Annual Rainfall Dodge City Kansas
Average yearly rainfall 215
Population change 1930ndash1940
501 or more
101ndash200
205ndash500
01ndash100
00ndash -72
Percent change by state
After years of drought many families abandoned their farms and headed west
740
1 Which states suffered the most severe damage
2 What states grew by more than 20 percent inpopulation during 1930s Why do you thinkthese states experienced the greatest growth
DUST BOWLDURING THE 1930s dust storms ravaged the GreatPlains This area was labeled the ldquoDust Bowlrdquo Duststorms dubbed ldquodustersrdquo or ldquoblack blizzardsrdquo sweptacross the region darkening the sky and buryingfences fields and even houses and barns
LIVING ON THE PLAINS
Settlers had flocked to the plains and plowed up thegrasses to plant wheat and other crops Repeated deepplowing destroyed the protective root layer of the toughgrasses and sod that held moisture and anchored the soil
DARK CLOUDS
In the early 1930s a severe drought struck the regionand the wind began to blow the fine-grained soil awayThe drought lasted for years and caused many duststorms Sometimes the storms lasted for weeks Highwinds blew topsoil all the way to the Atlantic OceanDesperate farmers watched their crops shrivel and blow away
HEADING WEST
Many families lost their jobs and their farms Theyfinally crammed their belongings into their old jalopiesand headed west During the 1930s half a millionmigrants traveled west searching for jobs The migrantsmany of them living out of their cars would travel fromfarm to farm hoping to find work picking fruit vegeta-bles or cotton
RELIEF
New Deal programs finally brought relief to victims of the Dust Bowl In addition to helping migrants thefederal government taught farmers in the Dust Bowl new conservation measures to preserve their land Rains
eventually fell but true prosperity did not returnto America until factories geared up productionfor World War II
Dust Bowl
Damage
Severe damage
Migration route
Most severe damage
0
0
200 miles
200 kilometers
These Dust Bowl refugeeswere stranded on the high-way when their truck brokedown in New Mexico
Dust storm in Hugoton Kansas
L E A R N I N G f r o m G E O G R A P H Y
741
null
11368296
Main IdeaAs the Great Depression continuedand the administration became thetarget of increasing criticism Rooseveltlaunched the Second New Deal
Key Termspension Second New Deal SocialSecurity Act unemployment insur-ance
Reading StrategyClassifying Information As you readthe section re-create the diagrambelow and describe the aims of theprograms and laws listed
Read to Learnbull why people criticized Roosevelt and
the New Dealbull how the Second New Deal created
new economic and social roles forgovernment
Section ThemeGovernment and DemocracyRoosevelt continued to launch newprograms to improve the economy
Effects of theNew Deal
742 CHAPTER 25 The Depression and FDR
Program AimsWorks ProgressAdministration
Social Security Act
Fair Labor Standards Act
1935FDR launches theSecond New Deal
1936FDR wins reelection
1937Sit-down strike occursin Flint Michigan
Preview of Events
Guide to Reading
1934 1935 1936 1937
Anti-New Dealbutton
Support for Franklin D Rooseveltrsquos efforts to end the Great Depression was far fromunanimous Many wealthy and conservative people attacked the presidentrsquos ldquoradicalrdquopolicies A political cartoon of the 1930s showed a boy writing the word ROOSEVELT onthe sidewalk in front of his rich familyrsquos house His sister calls out ldquoMother Wilfredwrote a bad wordrdquo
New Deal OpponentsIn the early days of his presidency FDR counted on big business to support
his efforts to revive the economy The National Recovery Administration forexample invited participation from the business community In general how-ever the business world opposed the New Deal
Business leaders accused Roosevelt of spending too much government moneyand of trying to destroy free enterprise In 1934 some of these conservative crit-ics formed the Liberty League to ldquodefend and uphold the Constitutionrdquo TheLeague wanted government to let business alone and play a less active role in
null
749715
743
the economy Although the Liberty League didnot win widespread support its existence con-vinced FDR that big business was against him
Demanding More ReformAt the same time Roosevelt drew fire from
liberal critics They wanted a more active gov-ernment Three men gained wide popularitywith schemes to help the average American
One of Rooseveltrsquos critics was Father CharlesCoughlin a Detroit priest who reached millionsof listeners through his weekly radio programCoughlin once a Roosevelt supporter attackedFDR for not dealing firmly enough with big busi-ness calling him ldquoFranklin Double-CrossingRooseveltrdquo Coughlin used his radio show toattack bankers Jews Communists and laborunions as well as the New Deal In time Cough-lin lost support because of his extreme views
Francis Townsend a California doctor roseto fame with his plan for a monthly pension orpayment for older people Older workers whoquit their jobs making them available toyounger people would receive a pensionTownsendrsquos plan received little support fromCongress It did however force many Ameri-cans to think about the plight of the elderly poorand the needs of retired people
Of greatest concern to Roosevelt howeverwas Senator Huey Long of Louisiana When hewas governor of Louisiana Long had won widesupport with public works projects and attackson big businesses
In 1932 Long supported FDR but within ayear the two men had split One of Longrsquos majorcomplaints against the president was that hehad not taken steps to redistribute wealth in theUnited States By 1934 Long had developed hisown plan for doing so His ldquoShare Our WealthPlanrdquo called for taxing the rich heavily thenusing that money to give every American ahome and $2500 a year As his appeal spreadLong became a threat to Roosevelt Polls indi-cated that in 1936 he might receive as many asfour million votes on a third-party ticket But in1935 he was assassinated
Describing What group wasTownsendrsquos pension plan designed to help
Economics
The Second New DealBy the mid-1930s the economy had improved
slightly but the Depression was far from overFDR took bolder steps
$
FDRrsquos critics Huey Long (left)and Father Coughlin (right)
null
14962836
To bring in more government funds Roose-velt pushed Congress to pass the Revenue Actof 1935 The act raised taxes on wealthy peopleand corporations Critics accused him of ldquosoak-ing the richrdquo to pay for his programs but manyAmericans cheered
In 1935 President Roosevelt launched a newset of programs and reforms often called theSecond New Deal The laws passed at this timechanged American life even more than the Hun-dred Days had done
Creating JobsMillions of peoplemdash20 percent of the work-
forcemdashwere still unemployed in 1935 In AprilCongress created the Works Progress Adminis-tration (WPA) to give people jobs and help thecountry Led by Harry Hopkins the WPA keptabout two million people employed between1935 and 1941 WPA workers built or repairedabout 800 airports 125000 public buildings75000 bridges and 650000 miles of roads
The WPA also found work for unemployedwriters artists and musicians WPA paintersdecorated the new public buildings withmurals Writers and photographers documentedlife throughout America The writers producedLife in America 150 volumes that recorded folk-tales and songs African American narrativesand Native American traditions
744 CHAPTER 25 The Depression and FDR
Help for Those in NeedBefore the Second New
Deal America was theonly advanced industrialnation without a nationalgovernment program tohelp the needy In August1935 Congress passed theSocial Security Act
The Social Security Act created a tax onworkers and employers That money providedmonthly pensions for retired people Anothertax on employers alone funded unemploy-ment insurance payments to people who losttheir jobs In addition Social Security helpedpeople with disabilities the elderly poor andchildren of parents who could not support them
With the Social Security Act the federal gov-ernment took responsibility for the welfare ofall citizens It launched the American welfaresystem
Explaining How did the govern-ment raise money for Social Security
The Labor MovementLabor unions grew stronger as workers battled
the Depression In 1937 workers at the GeneralMotors plant in Flint Michigan used a new
techniquemdashthe sit-down strikeStrikers continuously occupiedthe plant and refused to workuntil management agreed tonegotiate with them about theirdemands For 44 days families
HISTORY
Student Web ActivityVisit tajglencoecom andclick on Chapter 25mdashStudent Web Activitiesfor an activity about livingduring the Great Depres-sion
The glass sign was hand-painted by amember of the United Mine WorkersUnion How did workers benefit fromthe New Deal
History
null
1604441
745CHAPTER 25 The Depression and FDR
and friends of the Flint strikersbrought them food Finally thestrikers won the right to organizetheir union
The most influential labor leaderduring the 1930s was John LLewis head of the United MineWorkers To increase laborrsquospower Lewis strived to uniteworkers in every industry in a single unionMost unions in the American Federation ofLabor (AFL) represented only skilled workersLewis called for industrial unions to includeunskilled workersmdashthe largest group in thelabor force
In 1935 Lewis formed a new union called theCongress of Industrial Organizations (CIO)which helped create industrial unions By 1938the CIO had four million members includinglarge numbers of women and African Americans
Unions found support in the New Deal The1935 National Labor Relations Actmdashalso calledthe Wagner Act after its sponsor Senator RobertWagner of New Yorkmdashguaranteed workers theright to form unions to bargain collectively withemployers The act also created the NationalLabor Relations Board to enforce its provisionsIn 1938 Congress passed the Fair Labor Stan-dards Act (FLSA) which banned child labor andset a minimum wage of 40 cents an hour TheFLSA and the Wagner Act form the basis ofAmerican labor rights today
Comparing How did the CIO differfrom the AFL
The Supreme CourtThose who opposed the New Deal challenged
many of its laws in the courts claiming that theywere unconstitutional Several important casesreached the Supreme Court
In May 1935 the Supreme Court ruled that theNational Industrial Recovery Act was unconsti-tutional In the opinion of the Court Congresshad exceeded its lawful power to regulate inter-state commerce In January 1936 the SupremeCourt struck down the Agricultural AdjustmentAct Cases were also pending against the WagnerAct the Social Security Act and the TennesseeValley Authority It seemed as though theSupreme Court might destroy the New Deal
A Second TermThe presidential campaign of 1936 was based
on a single issue Did the American people sup-port FDR and the New Deal
To run against Roosevelt the Republicansnominated Alfred M Landon governor ofKansas Landon attracted dissatisfied Demo-crats as well as Republicans FDR campaigned
Packing the Court This cartoon uses farmimages to suggest New Deal programs Theeagle was a familiar symbol of the NationalRecovery Administration The plant suggests theAgricultural Adjustment Act and the water bar-rel suggests the Tennessee Valley AuthorityWhat group does the donkey symbolize
Analyzing Political Cartoons
null
15370386
Checking for Understanding1 Key Terms Write sentences about
the Second New Deal use thesevocabulary terms pension SocialSecurity Act unemployment insurance
2 Reviewing Facts Summarize theeconomic plan of Huey Long
Reviewing Themes3 Government and Democracy What
was the aim of Social Security andexactly whom did it help
Critical Thinking4 Making Generalizations Why did
many business leaders opposeRooseveltrsquos New Deal
5 Determining Cause and Effect Whydid Roosevelt propose to change thenumber of justices on the SupremeCourt Re-create the diagram belowand list one cause and two effects ofFDRrsquos proposal
Analyzing Visuals6 Political Cartoons Review the car-
toon ldquoPacking the Courtrdquo on page745 Does the cartoon show supportfor or opposition to the plan Howcan you tell
as the champion of the average American Hedenounced big business and the rich who ldquoareunanimous in their hate for memdashand I wel-come their hatredrdquo
On Election Day FDR received 61 percent of the popular vote the biggest landslide in anAmerican presidential election to that timeRooseveltrsquos support came from progressives andliberals the poor and unemployed urban work-ers and African Americans These groupswould form the core of the Democratic Party fordecades to come
Rooseveltrsquos ldquoCourt-Packingrdquo PlanSoon after his reelection FDR took action to
prevent the Supreme Court from undoing theNew Deal He asked Congress to increase thenumber of justices on the Court from 9 to 15saying that the 9 justices were overworked andneeded additional help FDR would appoint the6 new justicesmdashselecting of course justices whowould uphold the New Deal
The proposal aroused bitter opposition Crit-ics accused the president of trying to ldquopackrdquo theCourt and ruin the system of checks and bal-ances set up in the Constitution The issue diedwhen the Court ruled in favor of the Wagner Actand the Social Security Act The New Deal wasno longer in serious danger from the Court The
unpopularity of the court-packing plan how-ever cost Roosevelt a great deal of support andtriggered a split in the Democratic Party
The Roosevelt RecessionBy the summer of 1937 the national income
had nearly returned to its 1929 level Believingthat the Depression was finally over Roosevelttried to reduce the governmentrsquos debt by cuttingspending on relief and job programs
The economy faltered immediately Farmprices dropped Four million people lost theirjobs Times nearly as hard as 1932ndash1933returned The new economic downturn knownto some as the Roosevelt Recession lasted into1938 Roosevelt helped to reverse it with a floodof government spending on public works
The End of the New DealThe court-packing fight and the Roosevelt
Recession cost FDR support in Congress Theeconomy had not fully recovered in spite of thewide-ranging New Deal programs As the 1930sdrew to a close however world events causedAmericans to turn their attention from domesticto foreign affairs Dangerous forces were on therise in Asia and Europe
Explaining Why was Rooseveltrsquosplan to change the Supreme Court criticized
746 CHAPTER 25 The Depression and FDR
Government Research the effectof the New Deal in your commu-nity Find out if the federal govern-ment in the 1930s supported anylocal projects in conservation construction or the arts
FDRrsquos proposal
null
14978511
CHAPTER XX Chapter Title
Analyzing News MediaWhy Learn This Skill
Every citizen needs to be aware of current issuesand events to make good decisions when exercisingcitizenship rights
Learning the SkillTo get an accurate profile of current events you
must learn to think critically about the news Thesteps below will help you think critically
bull First think about the source of the news storyReports that reveal sources are more reliablethan those that do not If you know the sourcesyou can evaluate them Can all facts be verified
bull Many news stories also interpret events Suchanalyses may reflect a reporterrsquos biases Look forbiases as you read or listen to news stories
bull Ask yourself whether the news is even-handedand thorough Is it reported on the scene or secondhand Does it represent both sides of anissue The more sources cited for a fact themore reliable it usually is
Practicing the SkillOn this page is an excerpt from the New YorkTimes newspaper of February 6 1937 Read theexcerpt then answer the following questions
1 What point is the article trying to make
2 Is the article reporting something on the sceneor secondhand
3 Does the article reflect bias or strong opinionabout the news item
4 Is only one side of the issue presented Explain
Applying the SkillAnalyzing News Media Think of an issue inyour community on which public opinion isdivided Read newspaper features and editorialsabout the issue and listen to television reports Canyou identify biases Which reports more fairly rep-resent the issue and the solutions Which reportsare the most reliable
Glencoersquos Skillbuilder InteractiveWorkbook CD-ROM Level 1 providesinstruction and practice in key social stud-ies skills
Social StudiesSocial Studies
747
AIM TO PACK COURT DECLARES HOOVER
President Rooseveltrsquos message to Con-gress asking for authority to appoint newFederal judges whenever existing ones wereover 70 years old was characterized lastnight by Herbert Hoover his predecessor inthe White House as a proposal for ldquopack-ingrdquo the Supreme Court to get through NewDeal measures
ldquoThe Supreme Court has proved many ofthe New Deal proposals as unconstitutionalInstead of the ample alternatives of theConstitution by which these proposalscould be submitted to the people throughconstitutional amendment it is now pro-posed to make changes by lsquopackingrsquo theSupreme Court It has the implication ofsubordination of the court to the personalpower of the Executiverdquo
null
9644304
748
The Depression and FDR
Causesbull Income gap between rich and
poor grows
bull High tariffs and war debts
bull Overuse of credit to make purchases
bull Industry and agriculture supply exceeds demand
bull Sales lag
bull International market falters
bull Stock market crash financialpanic
Reviewing Key TermsOn a sheet of paper use at least six of the following terms to write a paragraph on the Great Depression or the New Deal1 default relief public works Hundred Days New Deal
Dust Bowl migrant worker pension Social SecurityAct subsidy unemployment insurance
Reviewing Key Facts2 What did the Bonus Army want the government to do3 What was the New Deal4 How did the CCC benefit the unemployed as well as
the nation5 In what region was the Dust Bowl centered6 Summarize the advances made by African Americans
and women during the Great Depression7 What was the purpose of the Social Security Act8 Describe two laws passed during the Second New
Deal that helped workers and unions
Critical Thinking9 Economic Factors How did the trend of buying
on credit in the 1920s affect banks during the Depression
10 Determining Cause and Effect How did new technol-ogy help cause the Dust Bowl disaster
11 Reviewing Themes Government and DemocracyRe-create the diagram below and list two ways thefederal government changed during Rooseveltrsquosadministration
Practicing Skills12 Analyzing News Media Find two articles one in a
current newspaper and the other in a newsmagazineon a topic involving the economy Compare the arti-cles Did either of the articles show any biases Listany unsupported claims
Changing role of government
Effectsbull Millions lose jobs poverty is
widespread
bull Businesses and banks close
bull Depression spreads to othercountries
bull Roosevelt wins presidency
bull New Deal legislation enacted
bull Despite periods of economic upturn the Depression remains
The Great Depression
Citizenship Cooperative Activity17 Research Work with members of your group to prepare
a photo essay to document the hardships of the Depres-sion Photocopy some of the photos and display them inan interesting way on a sheet of cardboard Write cap-tions for each photo provide photo credits and write atitle for your essay Then with the rest of the class createa walk-through gallery to display all the photo essays
Alternative Assessment18 Portfolio Writing Activity Both Eleanor and Franklin
Roosevelt received many letters from the public duringthe Depression asking for jobs money food and cloth-ing Write a letter from either of the Roosevelts respond-ing to a plea for help Explain in your letter what you canor cannot do for this person Use what you have learnedabout the Rooseveltsrsquo personalities to make your lettersrealistic
Self-Check QuizVisit tajglencoecom and click on Chapter 25mdashSelf-Check Quizzes to prepare for the chapter test
HISTORY
CHAPTER 25 The Depression and FDR 749
Directions Choose the bestanswer to the following question
All of the following programs were created byRoosevelt in the First New Deal EXCEPT the
A Agricultural Adjustment Act (AAA)B Civilian Conservation Corps (CCC)C Fair Labor Standards Act (FLSA)D Tennessee Valley Authority (TVA)
Test-Taking TipBe careful when you see the word EXCEPT in a questionRead carefully all the answer choices and choose the onethat doesnrsquot fit with the question Many times there arespecific words in the question that tell you something
specific Here the question asks about the First New Deal not the Second New Deal
Standardized Test Practice
Geography and History ActivityStudy the map below and answer these questions
13 Place What physical feature made Tennessee particularlysuited for the Tennessee Valley Authority project
14 Region Which states were supplied with power from the TVA
15 Location On the map what dams are located along theTennessee River
Economic Activity16 Use the Internet and other resources to research the vari-
ous types of credit available to consumers today Assessthe advantages and disadvantages of each type of creditDo you think consumer credit today could contribute toan economic depression like that of the 1930s
100 kilometers0Lambert Equal-Area projection
100 miles0N
S
EW
Cumberland R
Ten
nes
see
R
Be
ar C r
LittleTennessee R
Ohio R
Elk R
Mis
siss
ippi
R
WheelerDam
WilsonDam
KentuckyDam
Norris Dam CherokeeDam
Douglas DamWatts BarDam
Chickamauga Dam
GuntersvilleDam
ALA
GA
TENN
ILL
KY
MISS
SC
WVA
VAMO
IND
NC
Asheville
Bristol
Oak Ridge
Knoxville
Nashville
BowlingGreenCairo Paducah
Memphis
Corinth HuntsvilleChattanooga
The Tennessee ValleyAuthority
Area supplied withpower from the TVA
Dam
Steam power plant
Citizenship Cooperative Activity17 Research Work with members of your group to prepare
a photo essay to document the hardships of the Depres-sion Photocopy some of the photos and display them inan interesting way on a sheet of cardboard Write cap-tions for each photo provide photo credits and write atitle for your essay Then with the rest of the class createa walk-through gallery to display all the photo essays
Alternative Assessment18 Portfolio Writing Activity Both Eleanor and Franklin
Roosevelt received many letters from the public duringthe Depression asking for jobs money food and cloth-ing Write a letter from either of the Roosevelts respond-ing to a plea for help Explain in your letter what you canor cannot do for this person Use what you have learnedabout the Rooseveltsrsquo personalities to make your lettersrealistic
Self-Check QuizVisit tajglencoecom and click on Chapter 25mdashSelf-Check Quizzes to prepare for the chapter test
HISTORY
CHAPTER 25 The Depression and FDR 749
Directions Choose the bestanswer to the following question
All of the following programs were created byRoosevelt in the First New Deal EXCEPT the
A Agricultural Adjustment Act (AAA)B Civilian Conservation Corps (CCC)C Fair Labor Standards Act (FLSA)D Tennessee Valley Authority (TVA)
Test-Taking TipBe careful when you see the word EXCEPT in a questionRead carefully all the answer choices and choose the onethat doesnrsquot fit with the question Many times there arespecific words in the question that tell you something
specific Here the question asks about the First New Deal not the Second New Deal
Standardized Test Practice
Geography and History ActivityStudy the map below and answer these questions
13 Place What physical feature made Tennessee particularlysuited for the Tennessee Valley Authority project
14 Region Which states were supplied with power from the TVA
15 Location On the map what dams are located along theTennessee River
Economic Activity16 Use the Internet and other resources to research the vari-
ous types of credit available to consumers today Assessthe advantages and disadvantages of each type of creditDo you think consumer credit today could contribute toan economic depression like that of the 1930s
100 kilometers0Lambert Equal-Area projection
100 miles0N
S
EW
Cumberland R
Ten
nes
see
R
Be
ar C r
LittleTennessee R
Ohio R
Elk R
Mis
siss
ippi
R
WheelerDam
WilsonDam
KentuckyDam
Norris Dam CherokeeDam
Douglas DamWatts BarDam
Chickamauga Dam
GuntersvilleDam
ALA
GA
TENN
ILL
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The Tennessee ValleyAuthority
Area supplied withpower from the TVA
Dam
Steam power plant