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The Great Depression and The New Deal

The Great Depression and The New Deal

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The Great Depression and The New Deal

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  1. The Great Depression and The New Deal

  2. Causes of the Great Depression Problems in Industry Consumer Spending Problems in Farming The Stock Market Distribution of Wealth

  3. The Great Depression lasted from October 1929 until the economic recovery of the 1940s. On October 29, Black Tuesday, the stock market crashed, and continued to fall throughout the coming weeks. As a result, the United States and the world were thrown into a decade of poverty and unemployment.

  4. The depression affected all sectors of the economy. • Farm owners and agricultural workers suffered from falling crop prices. “Sharecropper’s Children” Dorothea Lange

  5. Businesses failed from a lack of investment support and a decline in the ability of the masses to afford their products.

  6. Banks closed their doors as the nation's citizens hoarded their money and defaulted on loan payments.

  7. Unemployment and abject poverty enveloped the nation.

  8. Herbert Hoover was President at the onset of the depression. He believed in recovery, even in the face of worsening conditions.

  9. Hoover believed the economy would right itself without government intervention.

  10. The situation did not improve, and Hoover established a program to build the Boulder Dam. But it was too little too late.

  11. Hoover lost the Presidency to Franklin Roosevelt in the 1932election.

  12. Roosevelt promised the American people a “New Deal.”

  13. FDR quickly shifted from a policy of non-intervention to one of government regulation and relief. During the first hundred days of his Presidency, FDR and his highly trusted advisors, known as the Brain Trust created the New Deal.

  14. To restore public confidence in the government FDR introduced his “fireside chats.” These were radio talks where the President spoke directly to the public.

  15. Three Goals of the New Deal 1. Relief for the Needy 2. Economic Recovery 3.Financial Reform

  16. Reforming Banking and Finance One of the first acts was The Emergency Banking Relief Act. 1.What was the purpose of this act? 2.What was the “Bank Holiday”?

  17. Reforming Banking and Finance The Glass-Steagall Banking Act 1933 was one of the New Deal Reforms. 3.What was the purpose of this act? 4.What is FDIC?

  18. Reforming Banking and Finance The Federal Securities Act was another act passed in the early days of FDR’s administration. 5. Explain this program and how it still affects the stock market today?

  19. By using implied power to expand the powers of the executive branch, FDR created a number of agencies to aid agriculture, business, and the unemployed. Art. I Section 8 Clause 18 The “necessary and proper clause”

  20. Alphabet Soup ! Numerous New Deal programs were created. Most were known by letters instead of by their official names. Many of these agencies were designed to provide employment.

  21. AAA Agriculture Adjustment Act 1938 6.What was the purpose of this act ? 7.Was it successful, explain? 8.Why did some of AAA policies upset many Americans?

  22. PWA Public Works Administration 9.What was the purpose of this act ? 10.Give examples of the types of projects completed by PWA workers.

  23. CWA Civil Works Administration 11.Why was this program established? Give examples of construction completed by CWA. 12. What did its critics say about CWA?

  24. CCC Civilian Conservation Corps 13.Explain what this program provided.

  25. CCC Camp at DeSoto State Park, Alabama Talladega National Forest was the site of CCC work camps. CCC workers at Fort Payne, AL

  26. FERA Federal Emergency Relief Administration 14.What was the purpose of FERA? 15.How were the funds used?

  27. NIRA National Industrial Recovery Act 1933 16.What was the purpose of this act ? 17. What agency did NIRA establish? 18.What were some of the regulations established by this agency?

  28. HOLC FHA Home Owners Loan Corporation 1933 Federal Housing Administration 1934 19.Why were these programs established? 20. Which one still exists today?

  29. TVA Tennessee Valley Authority 1933 21.How was this program supposed to help people? Give examples. 22.Does this program still exist today? If so, what benefits does it provide?

  30. In 1935 a number of Supreme Court rulings effectively dismantled the primary mechanisms of the New Deal. The NIRA was ruled unconstitutional on the grounds that it gave the President and the federal government too much power.

  31. In 1936 the AAA was struck down along with nine other New Deal laws. Reelected in 1936, FDR called for a plan to increase the number of Justices on the Supreme Court from 9 to15. He could then appoint Justices who would support his programs.

  32. “The Court Packing Scheme”


  34. FDR’s actions were viewed as an attempt to over ride the separation of powers established by the Constitution.

  35. The Critics of the New Deal FDR and Congress had designed programs that benefited millions of Americans, but there were many who criticized the New Deal.

  36. REA Rural Electrification 1935 23.What was the purpose of this program?

  37. The 2nd One Hundred Days 1935- 1938 Gaining a public mandate with the Democratic successes in the 1934 midterm elections in the House and the Senate, FDR set forth the Second New Deal in 1935.

  38. Steps were taken in attempts to solve the unemployment problem and stimulate economic recovery. The legislation passed during this period would be the framework of the New Deal throughout the remainder of the decade.

  39. NYA National Youth Administration The NYA provided work centers, vocational training, recreational jobs and workshops for everything from music to journalism.

  40. FSA Farm Securities Administration Resettlement Admin. (later Farm Security Admin.) lent funds to small farmers to buy land instead of renting or sharecropping Homeless family tenant farmers

  41. Social Securities Act 1935 What was the purpose of this act ? Was it successful, was it expanded, Did it have long lasting effects? Give explanations and examples.

  42. Fair Labor Standards Act What was the purpose of this act ? Was it successful, explain?

  43. National Labor Relations Act What was the purpose of this act ? Was it successful, explain?

  44. WPA Works Progress Administration • Headed by Harry Hopkins Constructed roads, schools, hospitals, libraries, airports, etc. • Between 1935 and 1943 over 8 million people were employed, building 850 airports, 110,000 public buildings including schools hospitals, and libraries • Employed teachers, writers, artists, actors, and musicians:

  45. WPA provided jobs for many people, especially artists by commissioning them to create posters promoting events and informing the public of important issues.

  46. WPA Posters

  47. FDR did get the Supreme Court majority that he wanted. One Justice changed his views and one retired. During his terms in office he appointed nine Justices. Only Washington appointed more.

  48. The economy showed signs of recovery but was set back by the 1937 recession. Few additional measures were put in place to cope with the depression. Economic recovery took place under the war economy of the early 1940s, with levels of poverty and unemployment returning to pre-depression levels.

  49. The Depression brought marked changes to the political and entertainment culture of the United States. A culture of dissent and disillusionment produced ample political outlets, such as Huey Long's “Share Our Wealth” program. Popular culture was affected as well.