The document provides background information on the causes of the Great Depression. It begins with a warm up asking students to consider what might happen if they lost their savings and job. It then discusses several causes, including a decline in key industries after WWI which led to job losses, overproduction in agriculture resulting in falling prices, high consumer debt levels, an unequal distribution of wealth, and the stock market crash of 1929. The effects of the Great Depression were widespread hardship as unemployment rose to 25% and people lost homes and means of support.

1. The Great
Depression
By Jackie White
U.S. History II

2. Chapter 22 Section 1
“The Nation’ Sick Economy”
 Key Question: What caused the Great
Depression?
 Chapter Objective: Students will be able to
identify and describe the causes of the Great
Depression.

3. Chapter 22 Section 1
“The Nations Sick Economy”
 Learning Objective: Be able to summarize several
causes of the Great Depression
 Main Idea: As the prosperity of the 1920s ended,
severe economic problems gripped the nation.
 Why It Matters Now: The Great Depression had
lasting effects on how Americans view themselves
and their government.
 Terms, People, & Events: price support, credit,
DOW Jones Industrial Average, speculation, buying
on margin, Black Tuesday, Great Depression,
Hawley-Smoot Tariff

4. Warm Up:
 What would you do if you
lost your entire life’s
savings and couldn’t find a
job?
 How might you feel if you
couldn’t provide food,
clothing, or shelter for your
family?
 What would happen if you
spent more money then you
actually had?
 What happens when many
people and businesses are
in that situation?

5. Beginning of Economic
Problems
 What did American companies do during World War
I?
 As European countries rebuilt in the 1920s they
decreased their dependency on American products.
 How will the decline in demand for American goods
impact businesses?
 If a company is loosing profits, what might the

6. Industry
 Some industries suffered from declining demand for
goods after WWI
 Some industries lost business to foreign competition
and new American technologies
 Coal industry declines b/c of development of new
energy sources
 Key industries barely made a profit (railroads, textiles,
& steel) & had to lay off workers
 New housing starts declined affecting other business
that depended on construction

7. What types of industries would be
affected by a decline in building new
houses?
 Loggers (cut
down trees)
 Construction
workers
 Plumbers
 Landscapers
 Electricians
 Architects
 Real Estate
Agents

8. Major Industries
What areas of the US will be most affected by the decrease in
coal production?

9. Agriculture
 http://www.iptv.org/IowaPathways/artifact_detail.cfm?aid
 http://www.iptv.org/IowaPathways/artifact_detail.cfm
?aid=a_000749&oid=ob_000064
 As you watch the video clips list/identify 3 problems
in agriculture.

10. Agriculture
 After WWI, demand for
farm products fell
drastically
 Farm overproduction lead
to a surplus of crops,
which lead to a decrease
in farm prices.
 Many farmers were unable
to make a profit to pay off
their debts and some lost
their farms to foreclosure
 Congress passed federal
price supports for farm
products, but President

11. Consumer Spending
 What are some examples of
things that people spend money
on?
 Complete consumer spending
worksheet
 What was problematic about
consumer spending?
 By making credit easily available,
businesses encouraged
Americans to pile up a large
consumer debt
 Faced with rising prices, stagnant
wages, and high levels of debt,
consumers decreased their
buying, and could not afford to

12. Distribution of Wealth
 What percentage of
Americans made more
than $10,000 annually?
 What percentage made
less than $1,500
annually?
 What was problematic
about how wealth was
distributed in 1929-1930?
http://www.youtube.com/watch?v=QPKKQnijnsM

13. Distribution of Wealth
 Nearly half of American
families earned the
minimum amount needed
for a decent standard of
living
 Unequal distribution meant
most consumers had too
little money to buy the
goods produced by
American factories

14. What is the NYSE?
NYSE- New York Stock
Exchange place to buy and
sell stock since 1792

15. Stock Market
 What is stock?
 Stock- a share of a company that
entitles you to profits made by the

16. Stock Market
 What does a stockbroker do?
 Stockbrokers-take orders from
customers to buy and sell shares of
stocks in more than 3,000 companies

17.  Dow Jones Industrial Average-
barometer of stock market health
based on the stock prices of the 30
largest firms trading on the NYSE

18. Stock Market
Why do people invest money into the stock
market?
 Speculation- buying stock in hopes of
making a quick profit
 Bull Market- period of rising stock prices
 In 1929 only 3% of population owned stock
(4 million)
 Most were already wealthy, some hoped to
strike it rich

19. Black Tuesday
 On October 29, 1929 the bottom fell out of the
market and the nation lost confidence
 Shareholders frantically tried to sell before prices
plunged even lower
 Millions of shares of stock could not find buyers
 People who bought stock on credit were stuck with
huge debts
 Stock prices plummeted and most lost their
savings.

20. Stock Market
 Many investors engaged in buying on
margin, paying a small percentage of
the stocks price as a down payment
and borrowing the rest.
 Buying on margin fueled the market
upward and generated wealth but only
on paper
 When the market crashed most
investors lost their life savings

21. What was the DOW
average in 1927?
What was the DOW
average in July of
1929?
What happened to
the DOW average
between 1927-
1929?
What do we call
that pattern?
When did the
market crash?
When did the
market reach its
lowest point?

22. What does the
cartoonist suggest
will happen to
individuals
because of the
crash?
How does the
cartoonist convey
a sense of fear
and shock?
What do the looks
on people’s faces
indicate about the
impact of the
crash?

23. Causes of the Great Depression
Key industries barely made a profit cut hours or laid
off workers
 Agricultural decline post WWI, farmers couldn’t pay
off loans, many lost their farms when the banks
foreclosed and seized their property as payment for
their debt
 Americans were buying less b/c of rising prices and
low wages
 Wealth was not evenly distributed among rich and
poor
 Availability of easy credit during 1920’s caused
many to go into debt

24. Chapter 22 Section 2
“Hardship & Suffering during the
Depression”
 Learning Objective: Be able to describe how
people suffered during the Great Depression & the
effect on men, women, & children.
 Main Idea: During the Great Depression Americans
struggled to survive & overcame adversity.
 Why It Matters Now: Since the Great Depression,
many Americans have been more cautious about
saving, investing, & borrowing.
 Terms, People, & Events: shantytown, soup
kitchen, breadline, Dust Bowl, direct relief

25. Great Depression
 What was it like to grow up
during the Great Depression of
the 1930’s?
 How did the Depression alter
family roles?
 Did Depression hardship
strengthen or weaken family
bonds?

26. Great Depression
Period of time between 1929-
1940 in which the economy
plummeted and unemployment
skyrocketed

27. How does the American Banking
system work?
People invest their
money in the
banks and banks
then invest that
money in the
stock market or to
give some of it out
in the form of
loans for
mortgages, cars,
& businesses

28. Can all Americans take out all
their money at the same time?
 No, because
the money isn’t
sitting in the
vault some of it
is invested so if
everyone tried
to take their
money out at
the same time
the banks
wouldn’t have
enough money
to pay

29. Rush on the Banks
 During the Great Depression, people panicked and
withdrew their money from banks, but some couldn’t
get their money b/c the banks invested it in the stock

30. Rush on the banks
In 1929, 600 banks closed
In 1933, 11,000 banks failed b/c the government

31. Protects your savings today up to $250,000

32. Gross National Product
 GNP- total output of the nation’s goods and services
 GNP was cut in half from $104 billion to $59 billion
 90,000 business went bankrupt

33. What was the higest percentage of unemployment during the
GD?

34. Economic Collapse
 Unemployment
jumped from:
 1.6 million in 1929
 4 million in 1930
 8 million in 1931
 12 1/2 million in 1932
 25 million in 1934
 25% of nation’s
families did not have
a single employed
wage earner
 1 out of 4 people were
unemployed

35. Hawley-Smoot Tariff Act
 What is GDP?
 What was the GDP in
1928?
 What was the GDP in
1933?
 What impact did the
Hawley-Smoot Tariff
have on US GDP?
 How would that
impact jobs and
business?

37. Hawley-Smoot Tariff Act
 Passed by Congress in the 1930’s
 Established the highest protective tariff in U.S.
History
 Designed to protect American farmers and
manufacturers from foreign competition
 Had the opposite effect
 Tariff made unemployment worse in industries that
could no longer export goods to Europe
 Countries retaliated by raising tariffs

38. Global Effects of the Depression
 As the U.S. economy collapsed so did EuropeAs the U.S. economy collapsed so did Europe’s’s
 WorldWorld’s nations had become interdependent’s nations had become interdependent
 World trade droppedWorld trade dropped
 World Wide unemployment soaredWorld Wide unemployment soared
 Germany and Austria were particularly hard hitGermany and Austria were particularly hard hit
 How might the global depression have contributedHow might the global depression have contributed
to to Hitlerto to Hitler’s rise to power in Germany?’s rise to power in Germany?

39. Bellwork:
 What would your life be like if
you had no home to live in and
no money to buy food or
clothes?
 What should the role of
government be in helping
people who are experiencing
tough times?

40. Hawley-Smoot Tariff Act
 What is GDP?
 What was the GDP in
1928?
 What was the GDP in
1933?
 What impact did the
Hawley-Smoot Tariff
have on US GDP?
 How would that
impact jobs and
business?

42. Hawley-Smoot Tariff Act
 Passed by Congress in the 1930’s
 Established the highest protective tariff in U.S.
History
 Designed to protect American farmers and
manufacturers from foreign competition
 Had the opposite effect
 Tariff made unemployment worse in industries that
could no longer export goods to Europe
 Countries retaliated by raising tariffs

43. Effects of the Great Depression
 People lost jobs, were evicted from their
homes, & ended up on the streets
Homelessness

44. Effects of the Great Depression
Shantytowns/Hoovervilles-little towns consisting of
shacks that sprang up in cities across the U.S.

45. Effects of the Great Depression
Inhabitants blamed Hoover for their plight

46. Effects of the Great Depression
Hoover’s name became an object of ridicule

47. Soup Kitchens- free or low cost soup
Effects of the Great
Depression

48. Effects of the Great Depression
Breadlines- Men waiting in line for free bread.

49. http://www.iptv.org/IowaPathways/artifact_detail.cfm?
aid=a_000756&oid=ob_000064

50. Dust Bowl
 Drought that began in the early 1930’s
 Wreaked havoc on the Great Plains

51. No trees or grass to hold the topsoil in place
Plowing removed the thick layer of prairie
grasses
Farmers exhausted the land from overproduction
of crops
Dust Bowl

52. st storms hit Kansas, Texas, New Mexico, & Colora
Dust Bowl

53. Migrant “Oakies” on their way to California
Thousands of families fled to California
Dust Bowl

54. Alendanre Hogue
 Grew up in West Texas
 Part of the regionalist
movement of artist who
attempted to create
unique American art
 He believed plowing the
land broke a sacred
bond
 Believed farmers
deserved some of the
blame for causing the
Dust Bowl because of
their farming methods

55. Painting Analysis
 What does the
house, cow, the
windmill, the
dunes, the vulture
represent?
 What is the feeling
of the painting?
 Dreary, desolate,
destruction, death,
no signs of life or
relief

56. • Lonely house vast distance
between it and the one in the
background emphasizes
loneliness of life on the Great
Plains
Skeletal cow it looks forlornly at the
water tank that is empty

57. • Broken windmill the power
of nature the wind has
broken the blades
• The well has not produced
any water and the water
tank is filled with dust
The vulture waiting for
the cow to die and the
fate of life on the
plains

58. What sense of the
Dust Bowl does this
photo give you?
Examine the
photograph closely.
What details from
the photo suggest
the impact of dust
storms?
What agricultural
problems
contributed to the
problems in the
Dust Bowl?
Dust Bowl
http://www.youtube.com/watch?v=YDxvc-BuS5A

59. Why are the people in the
photograph standing in
line?
Irony involves the indirect
presentation of a
contradiction between an
expression and the context
in which it occurs. What
was the original intent of
the billboard?
What contradictions occur
as a result of the line in
front of the billboard?
A Relief Center in Louisville Kentucky by Margaret
Bourke-White (1937)

60. Effects on Families
 Americans believed in
traditional values and
emphasized the
importance
of family
 Families entertained
themselves by staying
home and playing board
games & listening to the
radio
 Some families broke apart
under the strain to make

61. Depression Effects on Men
 Difficulty coping with unemployment
 Men walked the streets in search of jobs
 Some men abandoned their families

62. Depression Effects on Men
 http://www.iptv.org/IowaPathways/artifact_
detail.cfm?aid=a_000750&oid=ob_000064
Hoboes- wandered
the country, hitched
rides on railroad
boxcars and slept
under bridges
No federal system of
direct relief- cash
payments or food
provided by the
government to the poor

63. Effects on Women
 Canned food or sewed clothes to
make money
 Managed household budgets
 Many people believed that single
women had no right to work
when there were men who were
unemployed
 Cities refused to hire married
women as schoolteachers
 Were not seen begging or
standing in breadlines
 Many women starved to death

65. Effects on Children
 Poor diets, malnutrition,
diet related diseases, not
enough milk
 Rickets- a disease caused
by lack of vitamin D which
makes bones become soft
and prone to bending and
structural change
 Lack of money for health
care led to serious
problems, kids didn’t see a
doctor or dentist

66. Effects on Children
 School year
shortened due to
insufficient funding
 Children went to
work in sweatshops
 Road the rails in
search of
adventure, work,
escape

67. Social and Psychological Effects
 Some people were
demoralized & lost
their will to survive
 Suicide rate rose
over 30%
 3x more people were
admitted into mental
hospitals

68. Social and Psychological Effects
 People stopped going to
doctors & dentists
 Many did not go on to
college
 Some put off getting
married & having
children
 Frugality, never wanted
to be poor again

69. Chapter 22 Section 3
“Hoover Struggles with the
Depression”
 Learning Objective: Understand how Hoover’s
reluctance to help Americans caused the Depression
to worsen.
 Main Idea: President Hoover’s conservative
response to the Great Depression drew criticism from
many Americans.
 Why It Matters Now: Worsening conditions
caused the government to become more involved in
the health and wealth of the people
 Terms & Names: Herbert Hoover, Boulder Dam,
Federal Home Loan Bank Act, Reconstruction
Finance Corporation, Bonus Army

70. Who Won the Election of 1928?
Why might the democratic candidate not have won many states?

71. Herbert Hoover
 1928 Campaign pledge, “A chicken in every pot and a car
in every garage.”

72. Hoover’s Philosophy of Government
 “rugged
individualism”- the
idea that people
succeed through
their own efforts.
People should take
care of themselves
and their families
and not depend on
the government to
bail them out.
Self reliance, free competition, individual
liberty

73. Hoover’s Philosophy of
Government
 Opposed any form of federal welfare or direct relief to
the needy
 Believed handouts weaken people’s self respect
 Local charities should care for the less fortunate

74. Hoovers Philosophy of
Government
 The chief function of
government was to
encourage voluntary
cooperation among
competing interest
groups
 Federal government
should guide relief
measures but NOT
directly participate in
them

75. Hoover’s Response to Crash
 Tried to reassure Americans that the nation’s
economy was on sound footing
 Remain optimistic
 Go about business as usual
 Believed depressions were normal parts of the
business cycle
 Do nothing and let the economy fix itself
 Limited role of government in helping to solve
problems

76. Hoover’s Response to Crash
 Reacted with caution to stock market
crash
 Urged key leaders to work together to
provide solutions and act in ways that
would not make the economic situation
worse
 Urged businesses not to cut wages or lay
off workers
 Urged workers not to demand higher
wages or go on strike

77. Economic Situation in 1930?
 Continued to worsen
 Unemployment continued to rise
 More companies went out of business
 Soup kitchens, shantytowns, & hoboes became
common
 Misery of ordinary people continued to grow
 Republicans lost control of the House of
Representatives & Senate

78. Herbert Hoover’s Response
 Directed federal funds to public works
projects, such as the Boulder Dam, to jump
start the economy & create jobs
What measures did Hoover take and what results did he achieve to help the economy?
http://www.youtube.com/watch?v=oj7rdDoJKng

79. Hoover’s Response
 Backed a series of federal programs:
Federal Farm Board
 National Credit Corp
 Federal Home Loan Bank Act
 Reconstruction Finance Corp
 The economy continued to deteriorate
 http://www.youtube.com/watch?
v=9Z44gRBwLm8&feature=related

80. Patman Bill
 Passed by Congress in
1924 authorized the
government to pay a bonus
to WWI veterans who had
not been compensated
adequately for their
wartime service not to be
paid until 1945 in the form
of cash and life insurance
policy
 Wright Patman believed
that money should be paid
out immediately $500 per

81. Bonus Army March on Washington
10,000-20,000 WWI veterans and their families went to
Washington D.C. to demand bonus pay they were
promised

82. Hoover Disbands the Bonus Army
 Hoover thought they
were communists and
persons with criminal
records so he opposed
the legislation
 The marchers refused to
leave
 http://www.youtube.com/
watch?v=xu9FxiHp8ss

83.  Hoover sent 1,000 soldiers under the command of Dwight D.
Eisenhower and Douglas MacArthur to disband the veterans.
 They gassed 1,000 people including an 11 month old baby
who died & an 8 year old who went blind

84. The New Deal
23 The New Deal
HOME
CHAPTER OBJECTIVE
To understand the impetus for
FDR’s New Deal legislations
and the impact these policies had
on the American nation

85. 1
A New Deal Fights the Depression
OVERVIEW
After becoming president, Franklin
Delano Roosevelt used government
programs to combat the
Depression.
Americans still benefit from programs
begun in the New Deal, such as bank
and stock market regulations and the
Tennessee Valley Authority.
MAIN IDEAMAIN IDEA WHY IT MATTERS NOWWHY IT MATTERS NOW
TERMS & NAMESTERMS & NAMES
HOME
• Franklin Delano Roosevelt
• Glass-Steagall Act
• Federal Securities Act
• National Industrial Recovery Act
(NIRA)
• Civilian Conservation Corps (CCC)
• Agricultural Adjustment Act (AAA)
• Huey Long
• deficit spending
• New Deal
ASSESSMENTASSESSMENT
MAP

86. 23
W I T H H I S T O R Y
I N T E R A C T
How would you begin to revive the
economy?
Examine the
Issues
It is 1933, the height of the Great Depression. Thousands of
banks and businesses have failed, and a quarter of the adult
population is out of work. Now a new president takes office,
promising to bring relief to the ailing economy.
• What can be done to ease unemployment?
• How can the government help failing industries?
HOME
• What would you do to restore public confidence and economic security?
• How would you get money to pay for your proposed recovery programs?
The New Deal

87. What Should Be Done to Cure the
Depression?
 Read each of the following suggested ways to
fix the economy.
 Pick the top three ideas that you think are best
and label them 1, 2, &3
 Pick the three ideas you think are the worst
and label them 8, 9, & 10.

88. Election of 1932
Franklin Delano
Roosevelt
Democratic Candidate
reformer
Herbert Hoover
Republican
Candidate
Incumbent
(residing) President

89. Who won the Election of 1932?
Who were the
two presidential
candidates in the
1932 election?
Who won the
election of
1932?
Which political
party was the
winning
candidate apart
of?
Why might this
candidate have
won by such a
large majority?

90. Franklin Delano Roosevelt
 Thirty-Second
President
 1933-1945
Suffered from polio & was partially
paralyzed from the waist down.
He was able to stand with the help of
leg braces.
Campaigned vigorously to prove he
could undertake the job of President
despite his disability

91. Brain Trust
A group of carefully
picked advisers
including
professors,
lawyers, &
journalists that
helped FDR set
policies to
alleviate the
problems of the
Depression.

92. New Deal
Goals of the New Deal:
 1. relief for the needy
 2. economic recovery
 3. financial reform
FDR’s programs designed to alleviate the problems of the Great
Depression.

93. First Hundred Days
What month is the president
elected in?
When is the president
inaugurated (sworn in) into
office today?
First 3 months of Roosevelt’s
administration (March-June
1933)
A burst of congressional
legislation (laws) to address
problems of the Depression.
Significantly expanded the
federal government’s role in
the nation’s economy.

94. A Wise Economist Asks A Question
1. What do squirrels do
with acorns in the
summer & fall?
2. Did the man
“squirrel” away his
money?
3. What happened to
his savings?
4. What does this
cartoon tell us about
Americans faith in
the banking system?
5. What can be done to
restore Americans

95. FDR Fireside Chat
How does FDR use the
fireside chat?
What type of language
does he use?
What was the focus of his
first talk?
http://www.iptv.org/IowaPathways/artifact_
detail.cfm?
aid=a_000760&oid=ob_000064
http://www1.teachertube.com/viewVid
eo.php?
title=FDR_Fireside_Chat&video_id=89
365&vpkey=

96. Banking Reform
 Widespread bank failures had caused Americans to
loose faith in the banking system.
 March 5, 1933 Roosevelt declared a “Bank Holiday”
 Closed the banks to prevent further withdrawals &
reorganization

97. Exit Ticket
Complete the, “Let’s Make A Deal” Worksheet.
Identify the specific problems Roosevelt will need to address
as president.
Brainstorm possible solutions to each problem.

98. 1
A New Deal Fights the Depression
OVERVIEW
After becoming president, Franklin
Delano Roosevelt used government
programs to combat the
Depression.
Americans still benefit from programs
begun in the New Deal, such as bank
and stock market regulations and the
Tennessee Valley Authority.
MAIN IDEAMAIN IDEA WHY IT MATTERS NOWWHY IT MATTERS NOW
TERMS & NAMESTERMS & NAMES
HOME
• Franklin Delano Roosevelt
• Glass-Steagall Act
• Federal Securities Act
• National Industrial Recovery Act
(NIRA)
• Civilian Conservation Corps (CCC)
• Agricultural Adjustment Act (AAA)
• Huey Long
• deficit spending
• New Deal
ASSESSMENTASSESSMENT
MAP

99.  Insert make your own fireside chat or new deal
program poster.

100. Emergency Banking Relief
Act:
Authorized the Treasury
Department to inspect
the country’s banks.
Sound could reopen,
insolvent-remain
closed
How does this help to
cure the economy?
Restored confidence in
banks

101. Glass-Steagall Act
Established the FDIC
Federal Deposit
Insurance
Corporation to
provide federal
insurance for
individual bank
accounts.

102. Regulating Banking & Finance
 Federal Securities Act-
required corporations to
provide complete
information on all stock
offerings and made them
liable
 Securities & Exchange
Commission (SEC)-
regulate the stock market
and prevent insider
trading.

103. 21st Amendment
 Repealed
prohibition so that
government could
raise revenue by
taxing alcohol.

104. Rural Assistance
 Agricultural
Adjustment Act
(AAA)- sought to raise
crop prices by lowering
production which the
government achieved
by paying farmers to
leave a certain amount
of land unseeded.

105. Agricultural Adjustment Act
(AAA)
 Government provided
subsidies for limits on
production of corn, wheat,
cotton, pork, & tobacco
 If farmers reduced their
supply then prices would
increase
 Slaughtered 6 million hogs
 In return for withdrawing
land, farmers received
“rental” payments from the
AAA

106. Agricultural Adjustment Act
 http://www.iptv.org/IowaPathways/artifact_deta
il.cfm?aid=a_000759&oid=ob_000064
 declared unconstitutional in 1936
 Revived in 1938 with modifications to meet
Court challenge

107. Tennessee Valley Authority
TVA
 Designed to
develop & improve
the Tennessee
River Valley region
 Created thousands
of jobs & other
benefits to an
impoverished region
 Which seven states
benefit most directly
from TVA projects?

108. Built damns to prevent floods

109. Constructed
hydroelectric power
plants to attract more
industry and provide
electricity to homes
Power companies didn’t
like the government
production and sale of
power they claimed it
was unfair

110. Civilian Conservation Corps
 Put almost 3
million young
men aged 18-25
to work building
roads, developing
parks, planting
trees, & helping
prevent soil
erosion and flood
control projects.
http://www.iptv.org/IowaPathways/artifact_detail.cfm?
aid=a_000755&oid=ob_000064

111. Planted 200 million tress in the Great Plains to prevent
another Dust Bowl

112. Public Works Administration
 Created in 1933 when Depression was at
its most severe and economic system of
U.S. was near “complete collapse”
 Provided money to states to create jobs
chiefly in the construction of schools &
community buildings
 Funded $3.3 billion to put people to work
building roads, public buildings, improving
waterways, and other projects
 34,000 public projects

113.  The poster claims that
P.W.A. efforts were
aimed at turning relief
into what?
 What examples of
P.W.A. activities are
found in Texas?
 What primary activity was
taking place off the west
and east coast of the
U.S.?
 What public-works

114. National Industrial Recovery
Act (NIRA)
 Established codes of fair
business practices
 Set prices of products to
ensure fair competition
 Established standards for
working hours & a ban on
child labor
 Guaranteed workers rights
to unionize and bargain
collectively.

115. Home Owners Loan Corp
(HOLC)
 Provided
government loans
to homeowners who
faced foreclosure
because they
couldn’t make their
loan payments.

116. Federal Housing
Administration (FHA)
 Furnishes loans for
home mortgages
and repairs

117. Federal Agency Emergency
Relief (FERA)
 $500 million to
provide direct relief
for the needy
 Food & clothing for
the unemployed,
aged, & ill

118. Keynesian Economics
 Deficit Spending-
spending more money
then the government
takes in to stimulate the
economic recovery by
putting money in the
hands of consumers to
make it possible for them
to buy goods & services
and thus fuel economic
growth
British economist
John Maynard Keynes

119. Opposition to the New Deal
 New Deal isn’t
doing enough!-
liberals
 New Deal is
doing too
much!-
conservatives
 Opposition from
the Supreme
Court

120. New Deal Isn’t Doing Enough!
 Many Americans were
still desperately poor
 Worst off were blacks &
farmers
 Key figures were:
 Huey Long
 Father Coughlin
 Dr. Francis Townsend

121. New Deal Critic: Dr. Francis
Townsend
 Retired California
Physician
 Suggested a $200
per month pension
for people over 60
 Open jobs for
younger
unemployment
 Funded by a national
transaction sales tax

122. New Deal Critic:
Father Charles Coughlin
 Catholic radio priest in
Detroit Michigan in 1930’s
 10 million listeners
 Criticized FDR in weekly
radio program
 Critical of New Deal
 International conspiracy of
bankers
 Fascist; Anti-Semitic
overtones

123. National Union for Social Justice
 Every person capable of
work should receive a fair,
living, annual wage
 Nationalizing some public
resources
 Private ownership of
property but controlling it for
public good
 Right for workers to form
unions & govt support &
protection
 Human rights over property
rights
Father Charles Coughlin

124. New Deal Critic: Huey Long
 Governor of Louisiana &
U.S. Senator
 Populist who championed
the working class & the poor
 “The Kingfish”
 Critic of FDR’s New Deal for
not doing enough to
redistribute wealth
 Promoted “Share the
Wealth” program
 Shot & killed by Dr. Carl
Weiss in 1936
 http://www.youtube.com/wat
ch?
v=hphgHi6FD8k&feature=rel

125. “Share Our Wealth”
 1. Federal govt give every family an allowance of not less
than 1/3 the average family wealth of the country
 No family have a fortune more than 100-300 times the
average family fortune
 Capital levy tax on income over $1 million
 2. No person have an income less than $2,000-$2,500
annually
 3. Limit/regulate working hours to prevent overproduction
and allow workers time for recreation, education, etc.
 4. Old Age Pension for people over 60 years old
 Guarantee all citizens a car, a house, a pension, & an
education
 Popular with the poor

126. The New Deal is Doing Too Much!
 Business Community & Republicans
 ND too complicated, too many codes & regulations
 Govt shouldn’t support unions & wages, that is the
job of the market
 ND like Stalin’s 5 year Plan
 Wealthy worked hard, high taxes discourage
people from working hard, & gave money to
people who did little for it.

127. The New Deal is Doing Too
Much!
 Govt schemes like
TVA unfair
competition since
private companies
aren’t funded by
govt

128. What is FDR wearing?
What does his clothing
represent?
What is FDR pointing at?
What compass did FDR
want to change? Why?
How might the cartoonist
feel about FDR’s power as
president?
•FDR is behaving like
a dictator

129. 1
A New Deal Fights the Depression
1. List problems that President Roosevelt confronted and
how he tried to solve them.
continued . . .
Massive unemployment
Bank holiday; treasury inspection;
deposit insurance
Federal work programs
Paying farmers to slow crop
production
Lack of confidence in banks
Low crop prices
HOME
Problems Solutions
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ASSESSMENT

130. 1
A New Deal Fights the Depression
2. Of the New Deal programs discussed in this section,
which do you consider the most important?
Think About:
ANSWERANSWER
POSSIBLE RESPONSES:
• The FDIC boosted confidence in banks
• The CCC provided aid for unemployment and helped
the environment.
• the type of assistance offered by each program
• the scope of each program
• the impact of each program
HOME
ASSESSMENT
continued . . .
MAP

131. 1
A New Deal Fights the Depression
3. Do you think Roosevelt was wrong to try to “pack”
the Supreme Court with those in favor of the New Deal?
ANSWERANSWER
POSSIBLE RESPONSES:
• No: Given the crisis of the Depression, it was necessary
for FDR to restructure the Court.
• Yes: FDR’s proposed “Court-packing bill” would violate
principles of judicial independence and the separation of
powers.
HOME
ASSESSMENT
continued . . .
MAP

132. 1
A New Deal Fights the Depression
4. The New Deal has often been referred to as a turning
point in American history. Cite examples to explain why.
ANSWERANSWER
The New Deal helped the failing banking system, restored
people’s hope in the future, provided assistance to farmers
and those in need of housing, and provided people with
jobs.
HOME
ASSESSMENT
End of Section 1
MAP