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1. The Great Depression and New Deal, 1929–1940 The Great Depression has a major impact on American society. President Franklin Roosevelt ends the economic downturn and changes the role of U.S. government. "Joad Family Applying for Relief" (named for family in Steinbeck’s The Grapes of Wrath)—migrant farmers seek government aid. Photo (1938), Horace Bristol. NEXT

2. The Great Depression and New Deal, 1929–1940 SECTION 1 Hoover and the Crash SECTION 2 Roosevelt and the New Deal SECTION 3 Life During the Depression SECTION 4 The Effects of the New Deal NEXT

3. Section 1 Hoover and the Crash After the stock market crash of 1929, the U.S. economy sinks into the worst depression in its history. NEXT

4. SECTION 1 Hoover and the Crash Problems in the Economy • Herbert Hoover elected president (1928) • Despite overall prosperity, some industries are in trouble • 71 percent of U.S. families earn below amount needed for decent living • Industries produce more goods, people cannot afford to buy enough • Unsold goods pile up in warehouses • Many investors buy on speculation—buy, sell stocks, make quick profit Continued . . . NEXT

6. SECTION 1 continued Problems in the Economy • Investors begin buying on margin: - pay small part of stock’s price as down payment, borrow the rest - sell stock, repay loan, keep profit • Works if prices rise, if prices fall unable to repay loans NEXT

7. SECTION 1 The Crash and the Great Depression • Stock prices drop sharply, people try selling thousands of shares • Heavy selling drives prices down more, scares off buyers • On October 29, 1929, Black Tuesday, investors: - sell 16.4 million shares at prices lower than previous month • Stock market prices plunge—Crash of 1929 Continued . . . NEXT

8. Telephone operator connected to New York, writes share values on blackboard, as club members eye market fluctuations after financial crash.

9. SECTION 1 continued The Crash and the Great Depression • Many people unable to pay bank loans, banks run short of cash • People demand their money from banks, many banks run short, close • People buy less goods, cause thousands of businesses to go bankrupt • Businesses fire workers, unemployment grows to 25% by 1933 • Great Depression—severe economic depression, 1929 to WW II, global NEXT

12. Farm prices were low; farmers suffered poverty. Although some Americans were rich, 71 percent of Americans did not earn enough to live decently; some had no jobs.

13. Railroads, textile mills, and mines were in trouble; other industries produced more goods than the public could buy. Since they could not sell all their products, they had trouble earning enough income to stay open. People who wanted consumer goods they couldn’t afford went into debt to buy them. Consumer debt grew higher than people could repay. Prices rose; investors bought on speculation and engaged in buying on margin. If stock prices fell, they would be unable to repay debts.

14. SECTION 1 Hoover Acts Conservatively • President Hoover cuts government spending, raises taxes which: - pulls money out of economy, makes depression worse • Refuses to support government relief—aide to the poor • Asks for increase in charitable work, not enough to help everyone • Supports public works projects: - government-funded projects to build public resources, creates jobs NEXT

15. SECTION 1 Hoover Loses to Roosevelt • Congress promises World War I veterans bonuses due in the 1940s • Thousands of WW I vets form the Bonus Army: - sets up camp around Washington D.C. - asks Congress to pass law granting early payment of bonuses "Bonus Army"— unemployed World War I veterans Continued . . . NEXT

16. SECTION 1 continued Hoover Loses to Roosevelt • President Hoover, Senate votes down bill for bonus payment • U.S. troops use tear gas, remove remaining vets, families, kill 1 vet • Attack turns Americans angrily against Hoover • Franklin Delano Roosevelt wins presidential election (1932) NEXT

17. He thought it might make the economy worse; he thought people would grow too dependent on the government if the government paid them relief. He proposed a quality he called “rugged individualism,” and he urged volunteer efforts. He thought charities and churches should care for those in need. He did not support their request for early payment of their wartime bonus but instead backed the Senate when it voted against the bill.

18. C. Recognizing Effects, explain how most Americans responded to Hoover’s policies and actions. People grew bitter and blamed Hoover for their troubles; the public turned against him and elected his Democratic opponent, Franklin Delano Roosevelt, in 1932.

19. Section 2 Roosevelt and the New Deal After becoming president, Franklin D. Roosevelt takes many actions to fight the Great Depression. NEXT

20. SECTION 2 Roosevelt and the New Deal Roosevelt Takes Charge • Democrat Franklin Delano Roosevelt(FDR) inaugurated on March 4, 1933 • Gives Americans hope, willing to try new ideas, change government • Takes 3 steps to build public confidence: - declares “bank holiday”—temporary shutdown of banks - promises that only banks in good shape will reopen - fireside chats—radio talks, FDR explains policies in friendly way NEXT

21. SECTION 2 The Hundred Days • FDR pledges New Deal—programs to fight Depression • Congress passes bills sent by FDR in Hundred Dayssession • Laws passed have 3 goals: - relief for the hungry - recovery for agriculture and industry - reforms to change the way the economy works NEXT

23. Radio talks in which FDR explained his policies in a warm, friendly way programs to fight the Depression; goals were relief, recovery, and reform temporary shutdown of all banks; only those banks in good shape would reopen

24. SECTION 2 Responses to the New Deal • Some conservatives oppose New Deal, growth of U.S. government • Question payment of new programs, fear U.S. moving toward socialism • Senator Huey Long wants redistribution of wealth in U.S. to gain power • On radio, priest blames Jews for bad economy: - Catholic church stops priest’s broadcasts • Another critic proposes pension, Americans over 60, figures disputed • Voters support New Deal, elect more Democrats to Congress (1934) NEXT

25. SECTION 2 The Second New Deal • Congress passes Social Security Act(1935): - workers, employers make payments into a special fund - they draw a pension from fund after they retire - also helps laid-off, disabled workers, needy families, dependents • Social Security is part of programs passed in 1935—Second New Deal • Working class, African Americans support FDR, wins reelection (1936) NEXT

27. thought it went too far; opposed growth of federal government; feared new taxes and threat of socialism thought it didn’t go far enough; wanted redistribution of wealth thought it didn’t go far enough; wanted to change economy to help poor thought it didn’t go far enough; wanted to give $200 a month to every American over the age of 60

28. SECTION 2 Roosevelt Fights the Supreme Court • Most of 9 justices of Supreme Court do not support FDR’s programs • Strike down laws they believe gives federal government too much power • FDR wants bill allowing him to add 6 justices, gain New Deal support • Democrats, Republicans criticize Court-packing bill, bill voted down • Retirements, deaths allow FDR to name 5 liberal justices NEXT

32. SECTION 2 The New Deal Slows Down • Opposition to FDR grows after Court-packing attempt • Economy gets worse in 1937, many blame FDR • Critics attack FDR’s deficit spending which involves: - using borrowed money to fund government programs • FDR himself doubts deficit spending policy NEXT

33. Social Security Act: a law that set up a system in which workers and employers made payments into a special fund, from which they would draw a pension Second New Deal: a set of programs passed in 1935, including Social Security Act, the Wagner Act, and others “court-packing” bill: a bill, proposed by FDR, that would allow him to add up to six justices to the Supreme Court (in an attempt to gain a majority who would favor his programs) deficit spending: using borrowed money to pay for government programs

34. Section 3 Life During the Depression During the Depression, most Americans know great hardship. NEXT

35. SECTION 3 Life During the Depression The Dust Bowl Destroys Lives • In early 1930s, drought hits Great Plains, winds cause dust storms • Dust damages farms across 150,000 square-mile region—Dust Bowl • Ruined farmers, families migrate to find work, many go to California • Newcomers overcrowd California, many from Oklahoma, called “Okies” NEXT

37. Dust storm in Spearman, Texas, April 14, 1935.

38. SECTION 3 Living Through Hard Times • In 1936, 9 million people in U.S. are unemployed • Bread lines offer food to hungry, many people lose homes • Homeless often live in makeshift shelters, under bridges • Boys often leave school to work, girls stay home to look after kids • Many teenagers run away from home, avoid burdening their family • Women often give up jobs to men, work at low-paying jobs, servants NEXT

39. Charity workers serve soup to unemployed men at lower level of Wacker Drive in Chicago, Illinois (November 4, 1930).

40. They saw their farms ruined by drought and dust storms; dust buried crops; farmers and their families became migrants in search of work but found few jobs in the Pacific-Coast states. Many people lost jobs and could not buy food for their families; thousands stood in bread lines; some families lost homes and lived in shacks or cars; children dropped out of school and tried to find jobs; fathers felt a loss of status and argued with families; women were pressured to give up jobs, but many still worked.

41. Explain the importance of each of these terms and names. Dust Bowl A 150,000-square-mile region in parts of Kansas, Oklahoma, Texas, Colorado, and New Mexico, that experienced drought and dust storms that damaged farms and crops

42. SECTION 3 Artists Portray the Struggle • Writers James Agee, Walker Evans depict harsh lives of tenant farmers • John Steinbeck’s novel The Grapes of Wrath (1939) depicts migrant Okies • Black writer Richard Wright shows racism in novel Native Son (1940) • Photographers, including Dorothea Lange, capture Depression suffering NEXT

43. Dorothea Lange

44. SECTION 3 Women in the New Deal • First lady Eleanor Roosevelthelps poor Americans • Visits coal mines, work camps, hospitals, reports to FDR • Holds press conferences with women reporters: - introduces women who run New Deal programs • Frances Perkins named secretary of labor, 1st female cabinet officer • Supports minimum wage, limit on child employment, unemployment laws NEXT

45. First Lady Eleanor Roosevelt (left) dressed as a miner aboard a coal train bound for Willow Grove Mine in Bellaire, Ohio (1935).

46. They wrote books and took photographs that portrayed the hard times. Women were pressured to give up jobs, but many still worked; more women held jobs in FDR’s administration than ever before.

47. SECTION 3 Minorities and the Depression • FDR has several African Americans in government positions • FDR fails to back civil rights laws, afraid of Southern opposition • Mexican Americans find few jobs, many do not benefit from New Deal • In 1930s, immigration from Mexico declines, many Mexicans leave U.S. • Some Mexican-American U.S. citizens forced to leave U.S. • Native Americans receive arts support, some reservation land restored NEXT

48. SECTION 3 Unions Gain Strength • Labor union Congress of Industrial Organizations (CIO)open to: - women - minorities - unskilled workers • Labor movement uses sit-down strike: - instead of walking off jobs, workers remain idle inside plant - prevents factory owners from using strikebreakers • Wagner Act (1935) gives unions more negotiation power • Union membership increases 2.7 million (1933) to 7 million (1937) NEXT

50. FDR included more minorities in government than before; he didn’t support an anti-lynching bill; even so, African Americans supported FDR because he tried to help the poor. Mexican Americans had trouble finding jobs; they received some aid from New Deal but not as much as other groups; some were deported to Mexico. Native Americans had some lands restored to their ownership; the Indian Crafts and Arts Board was created. The Wagner Act gave unions the ability to negotiate; a new labor organization, the CIO, was formed; unions used an effective new tactic, the sit-down strike; union membership grew.