CHAPTER 33: THE GREAT DEPRESSION AND THE NEW DEALBy the awesome:Lacey LauschBe prepared to learn.

ESSENTIAL QUESTIONS! What exactly was the “New Deal?” How did FDR’s Hundred Day’s Congress work

on stomping out the Great Depression? What were some of the acts that were created when the Hundred Day’s Congress was taking place?

What are the three major administrations that were created during the period of the Great Depression, and what exactly did they do?

VOCABULARY… New Deal Banking Relief Act of

1933 Fire side chats Glass-Steagall

Banking Reform Act Civilian Conservation

Corps (CCC) Federal Emergency

Relief Administration (FERA)

National Recovery Administration (NRA)

Public Works Administration (PWA)

Agricultural Adjustment Administration (AAA)

Soil Conservation and Domestic Allotment Act of 1936

Parity

SOME MORE VOCABULARY… Tennessee Valley

Authority (TVA) Social Security Act

of 1935 Fair Labor Standards

Act Hatch Act of 1939

The Election of 1932 Roosevelt ran up

against Hoover in 1932. Hoover was quickly

swept out of office. FDR preached about

the New Deal and how he is going to help economy.

FDR’s major goals included.. Balanced budget “Happy days are here

again.”

FDR AND THE 3 R’S Inauguration Day

FDR gave people a newfound hope.

“Let me assert my firm belief that the only thing we have to fear is fear itself.”

FDR had a new idea in mind, the 3 R’s.

Relief, Recover, Reform Hundred Days

Congress: Much laws and acts had

been imposed Roosevelt had a lot of

leadership power, the most seen in Democracy in a while.

People were really hoping it would help get out of the Depression.

Before inauguration, Hooverites blamed Roosevelt for the worsening conditions of the depression because Hoover could not pass laws without the direct consent of FDR.

LET’S MANAGE OUR.. (MONEY!)

Banking Relief Act of 1933 Gave Roosevelt the power to

regulate banking transactions and foreign exchange.

Power to reopen solvent banks.

Passed within the first days of FDR’s presidency.

Glass-Steagall Reform Act Provided for the

Federal Deposit Insurance Corporation.

The Federal Deposit Insurance Corporation insured individual deposits up to $5,000 (later raised).

Fireside Chats Roosevelt spoke over the

radio. Gave assurance that it was

safer to keep money in reopened banks than under the mattress.

FDR WANTS TO PROTECT GOLD RESERVE! FDR ordered all private

holdings of gold to be surrendered to the Treasury in exchange for paper currency.

Took the nation of the gold standard.

Why? Reduce inflation Make cheaper prices

Congress responded to FDR’s course of action Cancelled the gold-payment

clause in all contracts. Authorized repayment in

paper money.

LET’S GET MANAGED (CURRENCY) FDR wants to rid inflation. FDR instructed the Treasury to purchase gold

at increasing prices Sound Money critics

Disgusted with the “baloney dollar.”

CREATING SOME JOBS Unemployment

rates were at a record high, 25%.

1 in every 4 workers had been without a job.

Civilian Conservation Corps (CCC) Provided employment in

government camps for about 3 million uniformed young men.

Work was useful to citizens, reforestation fire-fighting, flood control, and swamp drains.

Required to send home most of their pay to help their parents.

Later complaints of “militaring” the CCC.

FEDERAL EMERGENCY RELIEF ACT Imposed the Federal Emergency Relief

Administration Ran by Harry Hopkins. In all granted $3 billion to states for wages on

work projects.

WE GOT RELIEF FOR FARM BOYS, AND NORMAL PEOPLE TOO. Agricultural

Adjustment Act Made millions of

dollars available to help farmers meet their mortgages.

Home Owners Loan Corporation Helped to refinance

mortgages on non-farm homes.

Assisted about a million households.

FAIR COMPETITION MAKES LEEWAY National Recovery

Administration (NRA) Designed to assist

industry, labor, and unemployed.

Public Works Administration (PWA) Industrial recovery and

unemployment relief Long range recovery

was the #1 purpose $4 billion spent on

34,000 projects such as public buildings, highways/parkways.

Grand Coulee Dam (biggest structure since Great Wall of China). Irrigation of millions of

acres of land. More electrical power.

Hours of labor had been reduced so that employment could be evenly distributed.

PAYING FARMERS NOT TO FARM? Agricultural

Adjustment Administration (AAA) Eliminate price-decreasing

surpluses by paying grower to reduce crop acreage.

Since passed, it had first a wobbly start.

People were angered because farmers where throwing away food in a needed time.

Paying farmers not to farm increased unemployment.

Eventually killed by congress.

Second Agricultural Adjustment Act of 1938 If growers observed

acreage restrictions on specified commodities (cotton & wheat) they would be eligible for parity payments.

Parity: price set for a product that gave it the same value in purchasing power that it enjoyed from 1909-1914.

Tennessee Valley Authority (TVA) Determined to discover how

much the production and distribution of electricity cost so that a “yardstick” could be set up to test the fairness of rates charged.

Brought about full employment, cheap electric, low-cost housing, cheap nitrates, restoration of eroded soil, reforestation, improved navigation, and flood control.

Hydro-electric power was developed (not by TVA).

The electric power industry began to take hold of americans.

HOUSING TIME Federal Housing

Administration (FHA) Building industry was to

be stimulated by small loans to house holders.

Improvise dwellings and complete new ones.

United States Housing Agency (USHA) Lend money to states or

communities for low-cost construction.

For the first time in a century, slums decreased.

SOCIAL SECURITY Social Security Act of

1935 Provide security for the

old aged, blind, handicapped, delinquent children dependents, etc.

Payment made to people every so often (a certain amount of money.)

People had to be employed to get coverage.

NEW LABOR DEALS ARISE National Labor

Relations Act of 1935 Asserted the right of

labor to engage in self organization, and to bargain collectively through representatives.

National Labor Relations Board Created from the

National Labor Relations Act.

Unskilled workers began to organize into unions

John L. Lewis- Committee for Industrial Organization (CIO)

THE COMMITTEE OF INDUSTRIAL ORGANIZATION HAS TASKS The Automobile

industry Sit down strike:

refused to leave the factory building of General Motors in Michigan.

Prevented importation of strike breakers.

CIO wins.

United States Steel Agency Averted a costly

strike, granted unionization to CIO organized employees.

Fair Labor Standards Act Industries that had

been involved in interstate commerce were to set up minimum wage and maximum hour levels.

First standard: $0.40 / hour 40 hours / week (later changed and

raised)

Election of 1936 Landon was picked

to try to beat out FDR

FDR beat him by a landslide, the first in a while.

FDR was doing so great with getting people out of the depression, the people did not want to risk anything.

FDR’S PLAN BACKFIRES FDR’s plan failed

and a Recession started Sparked from Social

Security. Unemployment

sparks again. Congress puts FDR

on halt for reforms, and got limited power.

Hatch Act of 1939 Barred federal

administrative officials from political campaigning and soliciting,

No government funds were to be used for political use and, or campaign contributions.

PEOPLE HATE THE NEW DEAL, HOWEVER REVOLUTION WAS AVOIDED In 1938 the New

Deal loses its momentum.

People begin to hate Roosevelt for the New Deal. Increased debt Class strife provoked “One man super

government” Failed to end

depression

IT’S QUIZ TIME! WHAT DID YOU LEARN?

QUESTION ONE:What of the following was NOT the reason why

FDR wanted to rid the Gold standard?a) To rid inflationb) Allow the Treasury to hold all goldc) Decrease the price of all itemsd) Allow there to be one way to pay, paper

money

QUESTION ONE:What of the following was NOT the reason why

FDR wanted to rid the Gold standard?a) To rid inflationb) Allow the Treasury to hold all goldc) Decrease the price of all itemsd) Allow there to be one way to pay, paper

money

QUESTION TWO:What did the Civilian Conservation Corps (CCC)

do?a) Provided employment in government camps for

about 3 million uniformed young men.b) Provided for economic stability.c) Gave money to the people in the slums.d) Provided money to states to build houses.

QUESTION TWO:What did the Civilian Conservation Corps (CCC)

do?a) Provided employment in government camps for

about 3 million uniformed young men.b) Provided for economic stability.c) Gave money to the people in the slums.d) Provided money to states to build houses.

QUESTION THREE:What was the act that was passed within the

first day’s of FDR’s presidency that allowed FDR the power to regulate banking transactions and foreign exchange?

a) Agricultural Adjustment Actb) Social Security Actc) Banking Relief Actd) National Labor Relations Act

QUESTION THREE:What was the act that was passed within the

first day’s of FDR’s presidency that allowed FDR the power to regulate banking transactions and foreign exchange?

a) Agricultural Adjustment Actb) Social Security Actc) Banking Relief Actd) National Labor Relations Act

QUESTION FOUR:The Tennessee Valley Administration did all of

the following except:a) Determined to discover how much the

production and distribution of electricity cost so that a “yardstick” could be set up to test the fairness of rates charged.

b) Brought about restoration of eroded soil.c) Brought about cheap electric.d) Invented hydro-electric power.

QUESTION FOUR:The Tennessee Valley Administration did all of

the following except:a) Determined to discover how much the

production and distribution of electricity cost so that a “yardstick” could be set up to test the fairness of rates charged.

b) Brought about restoration of eroded soil.c) Brought about cheap electric.d) Invented hydro-electric power.

QUESTION FIVE:What did the Public Works Administration

(PWA) do?a) Provided for industrial recovery, unemployment

relief, and $4 billion had been spent on 34,000 projects.

b) Made farmers not able to farm causing them to basically throw their crops away. Which angered citizens of the USA. Eventually was not aloud to function anymore.

c) Made industries that had been involved in interstate commerce set up minimum wage and maximum hour levels.

d) Made millions of dollars available to help farmers meet their mortgages.

QUESTION FIVE:What did the Public Works Administration

(PWA) do?a) Provided for industrial recovery, unemployment

relief, and $4 billion had been spent on 34,000 projects.

b) Made farmers not able to farm causing them to basically throw their crops away. Which angered citizens of the USA. Eventually was not aloud to function anymore.

c) Made industries that had been involved in interstate commerce set up minimum wage and maximum hour levels.

d) Made millions of dollars available to help farmers meet their mortgages.

YOU ARE NOW DONE LEARNING, BE PROUD OF YOURSELF. Hopefully you got 5 out of 5! (:If not, I would re-read this PowerPoint.