The Effects of the New Deal

The Great Depression and The New Deal (1929-1941)

Chapter 26, Section 4

Essential Questions:

• Should Americans be asking themselves, “What has your country done for YOU?,” or should they ask, “what have YOU done for your country?” Why?

“After” The Great Depression

• Americans Viewed Themselves as Survivors of a Terrible Battle

• Most Americans were “Scarred” by the Great Depression

• Many Americans Lived in Constant Fear of Another Depression

• Grandma & Grandpa’s Basement Closet or Food Pantry!

World War II• World War II Ended the

Great Depression (Not the New Deal!)

• Government Had to Produce and Buy Guns, Tanks, Ships, Airplanes, Military Equipment,Etc…

• Men Were Drafted into the War!

• Women Had to Work in Factories!

• Everyone Had a JOB! (And $$$ to Spend!)

FDR Changed the Government Forever!!!

• FDR Made the Presidency (Executive Branch) the Center of the Government

• FDR Proposed Laws to Congress Instead of Waiting for Congress to Propose Laws

• FDR Increased the Role/Power of the Executive Branch!

Expansion of the Government’s Role in

People’s Lives• FDR Increased the Role

of the Government

• Government NOW was More Responsible for People’s “Well-Being”

• Welfare/School Lunches/Social Security Programs

• If Something is Wrong, People Tend to Blame the Government!

See Graphs on Page 747!

• Based on the graphs at the bottom of page 747, describe in your own words the impact of FDR’s New Deal programs on the U.S. during the Great Depression.

Unemployment Rate

Bank & Farm Failures

Social Security Act!!!• American Workers &

Employers Must Make Payments into the Social Security System

• When Americans Retire at 65, They Can Get Their Money Back in Monthly Payments

• Helps Older People Have $$$ When They Retire!

• Known as a Pension System!

National Labor Relations Board

• Created by the Wagner Act (2nd New Deal)

• Government Board that Investigates Disputes Between Management (Bosses) & Labor (Workers)

Agricultural Price Supports

• Created by the AAA (The New Deal)

• We Pay Farmers Today NOT to Grow As Much Food As They Can

• Helps Avoid Overproduction and Lowering of Food Prices

Federal Deposit Insurance Corp.

• FDIC – Protects/ Insures the $$$ of Depositors in Banks

• If the Bank Fails, Gets Robbed, Catches Fire, Etc…, The Government Insures Your $$$!

• Insured Up to $100K (Obama has Moved That Up to $250K)

• If People Place $$$ in Banks, Then Banks Can Lend Out Loans to New Businesses = Create Jobs

Securities and Exchange Commission (The SEC)

• Government Agency Created by FDR to Watch Over the Stock Market

• Makes Sure Companies Are Not Breaking the Law When Trading Stocks!

• Martha Stewart Story!

SEC ARRESTS!!!

Are You Liberal (Democrat) or

Conservative (Republican)?

Take the Survey!!!

What Side of the Aisle Are You?

• Liberals:– Tend to Be

Democrats– Believe that the

Government Should Intervene to Solve Problems

– NO Death Penalty– Abortion– Gun Control– Less Involvement

Overseas– Take Care of

Problems at Home First

– Welfare

• Conservatives:– Tend to Be

Republicans– Believe that the

Government Should be Smaller (Laissez Faire)

– Death Penalty– Against Abortion– No Gun Control– U.S. Should Be More

Involved in Overseas Issues

– Less Reliance on the Government to Solve Problems at Home

– No Welfare

Social Security Running Out?

• Our Social Security Program is in TROUBLE!!!

• Program is Running Out of $$$

• Any Solutions???

• You & Me Might Not Get Any $$$ When We Retire!

Essential Questions:

• Should Americans be asking themselves, “What has your country done for YOU?,” or should they ask, “what have YOU done for your country?” Why?