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Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Objectives
• Discuss the weaknesses in the economy
of the 1920s.
• Explain how the stock market crash
contributed to the coming of the Great
Depression.
• Describe how the Great Depression spread
overseas.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Terms and People
• Herbert Hoover – former Secretary of Commerce
and Republican candidate for President in 1928
• speculation – when investors gamble that stock
prices will rise
• Black Tuesday – October 24, 1929, the day the
stock market crashed
• business cycle – periodic expansion and
contraction of the economy
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Terms and People (continued)
• Great Depression – The collapse of the United
States and world economies beginning in 1929
• Hawley-Smoot Tariff – high protective tariff
passed in June 1930 that contributed to a
worldwide depression
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
How did the prosperity of the 1920s
give way to the Great Depression?
During the 1920s, many Americans enjoyed what
seemed like an endless era of prosperity. But in
1929, the stock market crashed. Production fell,
unemployment rose, and the economy went into
a period of dramatic decline.
Years after the Great Depression began, periodic
contraction was seen as part of the business cycle.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
The Republicans took
credit for the strong
economy.
Their presidential
candidate was Herbert
Hoover.
He believed in voluntary
cooperation between
business and labor.
In the 1928
presidential
race, the
Republican
Party was
confident.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Farmers could
not afford to
buy goods or
repay their
loans.
The agricultural sector
was in trouble. Rural
farmers produced huge
surpluses of food that
depressed prices.
Despite Hoover’s confidence, some saw
signs of weakness in the economy.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Easy credit and installment buying lead people
to purchase goods they can’t pay for.
By 1929, Americans
racked up more than
$6 billion in personal
debt — more than
double the 1921 level.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Rising wages masked an uneven distribution of
wealth.
While factory workers’
wages rose 8%, factory
output increased by 32%.
As a result, worker
incomes rose modestly,
while rich investor
incomes skyrocketed.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Until September 1929, the stock market
continued to rise.
Many people borrowed money
to buy stock, assuming prices
would continue to go up.
Some economists feared that
stocks were over-priced.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
On October 29th
, the stock market went into a
free fall as investors tried to sell at any price.
Many who bought stocks
on margin were wiped out.
Billions of dollars were lost
in a few hours.
16 million shares were sold
on “Black Tuesday.”
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
• In growth periods,
workers are hired, wages
rise, and demand for
products increases.
• In contraction periods,
workers are fired, wages
drop, and demand for
products falls.
The Great Crash
was a hallmark
of the nation’s
business cycle.
The economy
periodically
grows and then
contracts.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
The stock market crash didn’t start the Great
Depression by itself. Instead, it quickened the
collapse of the U.S. economy.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
The banking system feels the effects of the crash
first. People fear that their money will be lost so
they run to the bank and attempt to withdraw their
funds.
But banks don’t
have enough of their
money on hand as
cash. These bank
runs cause banks
to fail.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
• Factories closed, causing
worker layoffs.
• This lowered demand for
goods.
• By 1933, the
unemployment rate
reached 25%.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
The resulting drop
in world trade only
made the glut of
American factory
and farm products
harder to sell.
The strategy was
a mistake. Other
nations retaliated
and raised tariffs
as well.
Congress passed the Hawley-Smoot Tariff
to protect American manufacturers from
foreign competition.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
As international trade falls, a global drop in
business leads to a worldwide depression.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
There were several causes of the Great
Depression. There is still disagreement over
which are most important.
Each of the
following
contributed to
dangerous
economic
conditions:
hardships in Europe
and rural America
uneven distribution
of wealth
speculation in the stock
market
increased personal debt
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
• Examine the spread of unemployment in
America’s cities.
• Discuss the impact of the Great Depression
on rural America.
• Explain the human and geographical factors
that created the Dust Bowl.
Objectives
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Terms and People
• bread line – where charities or local agencies gave
food to the poor
• Hoovervilles – shantytowns set up on empty land
in cities and named after the President
• tenant farmers – rural farmers who lost their land
but stayed on to work for larger landowners
• Dust Bowl – millions of acres in the Great Plains
that were destroyed when dust storms blew away
the soil
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Terms and People (continued)
• Okies – Great Plains farmers forced off their land
by the Dust Bowl
• repatriation – policy whereby local, state, and
federal governments encouraged or coerced
Mexican immigrants – some of them U.S. citizens
– to return to Mexico
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
How did the Great Depression affect the
lives of urban and rural Americans?
The stock market crash signaled the end of boom
times and the economy staggered into the Great
Depression. Desperate poverty gripped the
nation leaving a permanent impression on those
who lived through it.
Tested by extreme hardship, this generation
forged a strong character and will to restore
prosperity.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Between 1921–1929,
the unemployment
rate never rose above
4%. By 1933,
however, it was near
25%.
Those who managed
to keep their jobs
had their wages and
hours cut.
Few Americans
understood
the causes
of the Great
Depression, but
everyone felt the
impact.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
For many, the only food
available came from public
soup kitchens or bread
lines run by charitable
organizations.
People sold their property
to buy food.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
The homeless lived in empty railroad cars, in
cardboard boxes, or in shacks built on public
land or empty lots.
Hoovervilles
appeared in
major cities
across the
country.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Bankers sold the
land and equipment
at auction. Some
farmers became
tenant farmers,
working for bigger
landowners. Others
decided to leave in
search of work
elsewhere in the
U.S.
Between 1930
and 1934, nearly
a million farmers
lost their farms,
homes, and farm
equipment
because they
could not pay
their mortgages.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
The remaining
farmers on the
Great Plains
suffered a terrible
drought, which led
to the Dust Bowl.
Dust storms
destroyed
millions of acres
of farmland.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
• Farmers had dug up thick prairie grasses to plant
wheat so there was nothing to hold the soil in place.
• 100 mile-per-hour winds blew dust clouds 8,000 feet
tall in Oklahoma, Texas, New Mexico, and Colorado.
• Wildlife and farm animals suffocated in the choking
winds.
Millions of tons of topsoil were blown away
in giant dust storms.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
In old trucks, they moved
west or to northern cities.
800,000 Okies left Texas,
Oklahoma, Missouri, and
Arkansas alone. Rural
states lost population
during the 1930s.
Those who could afford
it bought distressed
neighbors’ farms at low
prices to build expanded
commercial farms.
Farmers who
had lost their
land, called
Okies regardless
of where they
were from, were
forced to leave.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Family life was hurt by the Great Depression.
Some teens ran away and families broke up.
America’s birthrate fell to its lowest level
on record.
Those who were still working felt guilty because
friends and relatives were unemployed.
Those who still had jobs lived in fear that their
next paycheck would be their last.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Minorities suffered even more
during the depression.
• As Okies moved west to
find work, Mexicans and
Mexican Americans faced
fierce competition for jobs.
• Local governments urged
repatriation for Mexican
Americans.
• Even in good times,
African Americans were
“last hired and first fired.”
• Many were thrown off
southern farms where they
were sharecroppers.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
• Discuss how Hoover’s initial conservative
response to the depression failed.
• Explain the changes in the President’s policies
as the crisis continued.
• Describe how Americans reacted to Hoover’s
relief programs.
Objectives
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Terms and People
• localism – policy whereby problems are best
solved at the state and local level and not by the
federal government
• Reconstruction Finance Corporation – created
in 1932 to lend cash to investors to stimulate the
economy
• trickle-down economics – economic theory that
held that money lent to large banks and
corporations would in turn be invested in small
businesses which would hire more workers
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Terms and People (Continued)
• Hoover Dam – huge public works project on
the Colorado River that provided jobs, water for
irrigation, and power
• Bonus Army – a march on Washington in 1932
in which World War I veterans seek bonus
payment early
• Douglas MacArthur – supervised the forced
removal of the Bonus Army, which angered many
Americans
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Why did Herbert Hoover’s policies fail to
solve the country’s economic crisis?
As the Great Depression spread misery across
America, Herbert Hoover struggled unsuccessfully
to respond to the nation’s problems.
As a result of Hoover’s failed response, in 1932
Americans would turn to a new leader and
increased government intervention to stop the
depression.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Herbert Hoover did not cause the
Great Depression, but Americans
looked to him to solve the crisis.
He tried a number of different
approaches, but in the end he
failed to discover the right
formula for stopping the crisis.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Like most economists
of the day, he believed
that up and down
swings in the economy
were a natural part of
the business cycle.
It was thought that
strong businesses
would weather storms
without the support
of the government.
At the start of
the economic
downturn,
Hoover took a
hands-off
approach.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Asked
businesses to
keep wages,
employment,
and prices at
current levels
Called for
tax cuts,
lower
interest
rates, and
public works
Asked
wealthy to
donate more
money to
charity
Hoover saw that he must do something:
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
But volunteerism failed:
• Towns and states
didn’t have the
necessary resources
to deal with the
depression.
• Hoover did not
support direct federal
aid to individuals.
Hoover put his faith
in localism, a
policy whereby
problems are best
solved at the local
and state levels.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
The RFC gave billions
of dollars to banks and
large businesses.
The idea was that they
would lend to, and
invest in, struggling
businesses who would
hire workers and thus
end the depression.
The RFC failed when
businesses did not
hire more workers.
In 1932, Hoover
urged Congress to
create the
Reconstruction
Finance
Corporation (RFC).
The RFC employed a
policy known as
trickle down
economics.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
One policy that did succeed
was the construction of
Boulder Dam (later
renamed Hoover Dam)
across the Colorado River.
Started in 1930, the huge dam
provided power for millions and
irrigation for farm land, and
put thousands to work.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
• Some blamed Hoover and some blamed capitalism.
• Some were World War I veterans who wanted a
bonus that was promised to them.
• In 1932, those veterans formed the Bonus Army and
marched on Washington.
Many grew disillusioned during the
Great Depression.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Hoover ordered
General Douglas
MacArthur to remove
the veterans. He used
tear gas, cavalry,
tanks, and troops
with fixed bayonets.
Press photos of troops
using excessive force
angered the American
public.
20,000 veterans
set up camps and
occupied vacant
buildings. In
July, police tried
to evict them and
riots erupted.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
The eviction of the
Bonus Army doomed
Hoover’s bid for re-
election.
Americans were ready
for new leadership and
a greater role for the
government in solving
problems.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
• Analyze the impact Franklin D. Roosevelt
had on the American people after becoming
President.
• Describe the programs that were part of
the first New Deal and their immediate
impact.
• Identify critical responses to the New Deal.
Objectives
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Terms and People
• Franklin D. Roosevelt – American President
elected at the height of the Great Depression
• Eleanor Roosevelt – FDR’s wife and First Lady;
known for her active role in the administration
• New Deal – programs and legislation enacted by
FDR during the Great Depression to promote
economic recovery
• fireside chat – informal radio broadcast in which
FDR communicated with the American people
• FDIC – Federal Deposit Insurance Corporation;
government agency that insures bank deposits
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Terms and People (continued)
• TVA – Tennessee Valley Authority; government
agency that built dams in the Tennessee River
valley to control floods and generate electric power
• CCC – Civilian Conservation Corps; government
program that provided young men with jobs on
environmental conservation projects
• NRA – National Recovery Administration;
government agency that developed codes of fair
competition in industry, including minimum wages
and prices
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Terms and People (continued)
• PWA – Public Works Administration; government
agency that improved the nation’s infrastructure
and created millions of jobs
• Charles Coughlin – Roman Catholic priest who
accused FDR of not doing enough to end the
depression
• Huey Long – Louisiana Senator and New Deal
critic
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
How did the New Deal attempt to
address the problems of the
depression?
As poverty and homelessness gripped the
country, many Americans wondered if the
nation could survive the crisis.
They hoped a new leader could bring back
prosperity—and their faith in democracy.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Americans
were ready
for a
change.
In 1932, President Hoover ran for reelection.
But he had little chance of winning.
• Unemployment stood at 25%.
• Bank failures had wiped out
savings.
• The hungry waited for food at
soup kitchens.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Hoover’s opponent in the election
was Democrat Franklin D. Roosevelt.
• Harvard graduate
• New York State senator
• Assistant Secretary of the
Navy
• 1920 Nominee for Vice
President
• Polio survivor
• Governor of New York
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
The two candidates offered very different approaches
to the problems of the Great Depression.
Hoover
State and local
governments
and private
agencies should
provide relief.
Roosevelt
Leadership
should come
from the
federal
government.
Roosevelt won in a landslide.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Together with his “Brain Trust,” Roosevelt
moved quickly to carry out his promise of
giving Americans a New Deal.
The legislation
had three goals:
relief, recovery, and reform.
During his first
100 days in
office, 15 bills
were passed.
First New Deal
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Roosevelt began with the bank crisis.
FDR declared a four-day bank holiday, closing the
banks so they could get their accounts in order.
In the first of many fireside chats, FDR explained
that his actions were to halt bank failures.
When the banks reopened, there were no
more runs on the banks.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
FDR took other steps to reform the financial
system.
Insured bank deposits
Federal Deposit
Insurance
Corporation (FDIC)
Securities and
Exchange
Commission (SEC)
Regulated the stock
market
Such measures helped restore confidence in the
economy.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Roosevelt then turned to a series of New
Deal programs to bring relief to the country.
• The AAA sought to end
overproduction and
raise crop prices.
• The TVA built dams to
control floods and
generate electricity.
Some programs helped
farmers and those in the
rural South.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Many programs focused on job relief.
Civilian Conservation
Corps (CCC)
Put young men to work
improving national parks,
forests, and wilderness areas
Federal Emergency
Relief Agency (FERA)
Granted funds to state and local
agencies to helped the
unemployed
Civil Works
Administration (CWA)
Gave people jobs on public-
works projects
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
The Public Works Administration (PWA)
created millions of jobs.
Workers built
bridges, dams,
power plants,
and government
buildings.
These projects
improved the
nation’s
infrastructure.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Roosevelt also took steps to speed
economic recovery.
National
Recovery
Administration
(NRA)
• Established codes
of fair competition
• Set minimum
wages for workers
and minimum
prices for goods
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Not everyone, however,
supported the New Deal.
Conservatives charged that it
was making the government too
powerful.
• Destroying free enterprise
• Undermining individualism
Such critics
formed the
American Liberty
League.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
While
conservatives
thought the New
Deal did too
much, others
took the opposite
position.
Some argued that
the New Deal did
not do enough to
end the depression.
• Socialist Party
• American
Communist Party
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
The opponents
who gained the
largest audience
were Populist
critics.
Dr. Francis
Townsend
Proposed giving each
person 60 or older $200
a month to spend
Father
Charles
Coughlin
Used his radio show to
attack the New Deal,
calling it communist
Senator
Huey Long
Proposed a “Share Our
Wealth” program that
taxed the rich and gave
money to the poor
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Despite the critics, the
New Deal was popular
with most Americans.
In his inaugural address,
Roosevelt told Americans,
“the only thing we have to
fear is fear itself.”
FDR succeeded in reducing
people’s fear, but the
depression was far from over.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
• Discuss the programs of social and economic
reforms in the second New Deal.
• Explain how New Deal legislation affected the
growth of organized labor.
• Describe the impact of Roosevelt’s court-packing
plan on the course of the New Deal.
Objectives
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Terms and People
• second New Deal – legislative activity begun by
FDR in 1935 to solve problems created by the Great
Depression
• WPA – Works Progress Administration; agency that
provided job relief through public-works projects
• John Maynard Keynes – British economist who
supported the policy of deficit spending to help end
the depression
• pump priming – economic theory that favored
public-works projects because they put money in
the hands of consumers who would buy more
goods, stimulating the economy
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Terms and People (continued)
• Social Security Act – 1935 law that created a
pension system for retirees, established
unemployment insurance, created insurance for
victims of work-related accidents, and provided aid
for poverty-stricken mothers and children, the
blind, and the disabled
• Wagner Act – law that recognized the right of
employees to join labor unions and gave workers
the right to collective bargaining
• collective bargaining – process in which
employers negotiate with labor unions about
hours, wages, and other working conditions
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Terms and People (continued)
• Fair Labor Standards Act – law that set a
minimum wage and a maximum workweek and
outlawed child labor
• CIO – Congress of Industrial Organizations; labor
organization founded in the 1930s that
represented industrial workers
• sit-down strike – labor protest in which workers
stop working and occupy the workplace until their
demands are met
• court packing – FDR plan to add more justices to
the Supreme Court after the Court ruled some
New Deal legislation unconstitutional
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
What major issues did the second New
Deal address?
As depression continued to grip the nation,
Roosevelt continued to search for solutions.
Many of the New Deal programs created by
FDR continue to impact Americans today.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Though progress had been made toward easing the
problems of the Great Depression, Roosevelt knew
that much work still needed to be done.
In 1935, FDR
launched a new
campaign to
help meet the
goals of relief,
recovery, and
reform.
The second New Deal
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
As FDR planned a new round of spending,
critics charged that New Deal programs, and
their high price tags, were wasteful.
• The government was spending
money it did not have.
• The federal deficit had soared to
$4.4 billion.
Chapter 25 Section 1
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Section 1
Causes of the Depression
• Public-works projects put
money in the hands of
consumers.
• Consumer spending would
stimulate the economy.
• Deficit spending was
needed to end the
depression.
Economists
such as John
Maynard
Keynes
disagreed.
Deficit spending continued under the second New Deal.
Chapter 25 Section 1
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Section 1
Causes of the Depression
The Works Progress Administration
(WPA) created millions of jobs on
public-works projects.
• Workers built highways and public
buildings, dredged rivers and harbors, and
promoted soil and water conservation.
• Artists were hired to enhance public spaces.
Chapter 25 Section 1
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Section 1
Causes of the Depression
The Social Security Act
created a pension system
for retirees.
It also provided:
• unemployment insurance
• insurance for victims of
work-related accidents
• aid for poverty-stricken
mothers and children, the
blind, and the disabled
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Such benefits helped reduce poverty among the
nation’s elderly.
Chapter 25 Section 1
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Causes of the Depression
The government continued to give aid to farmers.
The government
provided price supports
for agriculture.
The Rural Electrification
Administration helped
bring power to isolated
rural areas.
Chapter 25 Section 1
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Section 1
Causes of the Depression
The government also funded irrigation systems,
dams, and other water projects in the West.
Construction of a
Dam, a mural by
WPA artist
William Gropper,
was a tribute to
workers on
western dams.
Chapter 25 Section 1
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Causes of the Depression
Roosevelt believed that improving the
standard of living for industrial workers
would benefit the entire economy.
Wagner Act
Fair Labor Standards Act
• Recognized the right of
workers to join labor unions
• Gave workers the right to
collective bargaining
• Set a minimum
wage and maximum
workweek
• Outlawed child labor
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
As union activity rose, a split emerged in the
American Federation of Labor.
The AFL
represented
skilled
workers who
joined craft
or trade
unions.
The union
made little
effort to
organize
workers in
the major
industries.
John L. Lewis
formed the
Congress of
Industrial
Organizations
(CIO) to
unionize
industrial
workers.
Chapter 25 Section 1
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Causes of the Depression
In 1936, the CIO’s United Auto Workers Union staged
a sit-down strike at General Motors.
This success led to
others, and union
membership soared.
After 44 days, GM
recognized the new
union.
Chapter 25 Section 1
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Causes of the Depression
• In 1937, FDR proposed adding up to six new
Justices to the Court.
• Critics attacked his court-packing plan as an
attempt to expand presidential power.
• The failed plan weakened Roosevelt politically.
After an overwhelming reelection victory, FDR
decided to fight back against the Supreme Court,
which had struck down many of his programs.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
The combination caused the
economy to sink again, and
unemployment soared.
After the economy had begun to improve in 1935 and
1936, FDR cut back on government spending to reduce
the deficit. At the same time, interest rates rose.
With his support wavering,
FDR did not try to push
further reforms through
Congress.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Chapter 25 Section 1
The Cold War Begins
Chapter 22 Section 3
Effects of the New Deal
Objectives
• Describe how the New Deal affected different
groups in American society.
• Analyze how the New Deal changed the
shape of American party politics.
• Discuss the impact of Franklin D. Roosevelt
on the presidency.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Terms and People
● Black Cabinet – African American leaders who
served as unofficial advisers to FDR
● Mary McLeod Bethune – educator and member
of FDR’s Black Cabinet
● Indian New Deal – program that gave Native
Americans economic assistance and greater
control over their own affairs
● New Deal coalition – diverse group of southern
whites, northern blue-collar workers, midwestern
farmers, and African Americans that united behind
FDR and the New Deal
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Terms and People (continued)
● welfare state – government that assumes
responsibility for providing for the welfare of
children and the poor, elderly, sick, disabled, and
unemployed
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
How did the New Deal change the social,
economic, and political landscape of the
United States for future generations?
The New Deal affected people of many different
backgrounds and ways of life.
It also brought fundamental changes to the role
of the federal government.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Eleanor Roosevelt inspired many women in
her leadership role during the New Deal.
• Transformed the role of
First Lady from ceremonial
to political activist
• Traveled widely
• Campaigned for FDR
• Offered policy advice
• Wrote a newspaper column
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Other women also played important roles in the
administration, such as Secretary of Labor
Frances Perkins, the first female Cabinet member.
However, the
New Deal did
not fight to
end gender
discrimination
in the
workplace.
• The WPA and other
agencies made an
effort to employ men
first.
• Women could not work
for the CCC.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
• The unemployment rate
for African Americans
was nearly 50%.
• Many people urged FDR
to help end racial
discrimination.
African Americans
were hit
especially hard by
the depression.
Roosevelt asked advice of members of his Black
Cabinet, such as Mary McLeod Bethune.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
• Farm subsidies led
landowners to evict
sharecroppers.
• African Americans often did
not receive equal wages.
• Domestic and farm workers
were exempted from New
Deal programs.
Some New Deal
measures
unintentionally
hurt African
Americans.
But he did not always listen. FDR refused to support
an antilynching law, fearing political fallout.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
The New Deal’s Commissioner of Indian
Affairs, John Collier, tried to improve
living conditions for Native Americans.
The Indian New Deal:
• Provided funds to
build schools and
hospitals
• Created an Indian
Civilian Conservation
Corps
The Bureau of
Indian Affairs
encouraged native
religions,
languages, and
customs.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
The Indian Reorganization Act of 1934 was
considered the centerpiece of the Indian New Deal.
This law restored tribal control over native lands.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Roosevelt and the New Deal united diverse
groups of Americans into a political powerhouse.
The New Deal coalition
included southern whites,
northern blue-collar
workers, midwestern
farmers, and African
Americans.
Democrats were now in
the majority.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
• Social and ethnic divisions diminished.
• Immigrant communities gained a greater
sense of belonging.
• Programs such as the WPA and CCC allowed
people of different backgrounds to get to
know one another.
Roosevelt’s New Deal programs also helped
unify a struggling nation.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
With the New Deal, FDR broke from the
tradition of laissez-faire and greatly
expanded the role of government.
New Deal
measures
strengthened
capitalism and
encouraged the
post-WWII
economic
boom.
• Restored trust in the
banks and the stock
market
• Increased homeownership
• Protected workers
• Helped modernize rural
America
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Thousands of WPA and PWA projects benefited
communities—and local economies—across the country.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
In a major policy
change, the New Deal
established the
principle that the
federal government was
responsible for the
welfare of all
Americans.
At the same time, the New Deal led to the rise of
the welfare state.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
• The government established
12 million acres of new
national parks.
• The CCC restored forests and
preserved the environment.
FDR also favored federal
action to protect the
environment.
Despite its benefits, the TVA had a mixed
environmental impact, disrupting natural habitats.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Finally, FDR and the New Deal changed the nature
of the presidency itself.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Objectives
• Trace the growth of radio and the movies in
the 1930s and the changes in popular culture.
• Describe the major themes of literature in the
New Deal era.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Terms and People
• The Wizard of Oz – popular depression-era film
that promised dreams really can come true
• Frank Capra – director whose films celebrated
American idealism and the triumph of the common
man over adversity
• War of the Worlds – 1938 radio drama that was
so realistic many people feared that Martians were
actually invading
• Federal Art Project – branch of the WPA that
hired artists to create artworks for public buildings
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Terms and People (Continued)
• mural – large picture painted directly on a wall or
ceiling
• Dorothea Lange – FSA photographer who helped
document the plight of America’s farmers
• John Steinbeck – author whose depression-era
classic The Grapes of Wrath tells the story of a
family trying to escape the Dust Bowl
• Lillian Hellman – playwright whose works
featured strong roles for women and socially
conscious subject matter
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
How did the men and women of the
depression find relief from their
hardships in the popular culture?
Entertainment helped Americans struggling
to survive the depression escape their
worries—at least for a time.
Federal support for the arts added to the
era’s rich cultural heritage.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Entertainment was
big business during
the 1930s.
Movies, radio, and music
reflected the mood of the
country.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Most Americans went to the movies to
escape their worries.
• The Wizard of Oz
• Snow White and the Seven
Dwarfs
• Frankenstein
• Top Hat
• Gone with the Wind
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
In the early 1930s, gangster films such as Public Enemy
reflected the public’s distrust of government.
As the New Deal restored confidence, films such as
G-Men began portraying government officials as heroes.
Director Frank Capra focused on the triumph of
the common man over adversity in such films as
Mr. Smith Goes to Washington.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
• Radio networks such
as NBC and CBS
entertained millions.
• People listened to
comedy, drama,
news, and FDR’s
fireside chats.
Radio was a vital part of everyday life.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Orson Welles’ 1938 radio
drama War of the
Worlds was so realistic
that it caused a national
panic when listeners
thought that Martians
were invading.
Radio disc jockeys played
the latest tunes on shows
like Your Hit Parade and
Make Believe Ballroom.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Music provided a happy diversion and a
serious outlet for social concerns.
“Swing” music played
by “big bands” topped
the charts.
Latin music and
dances like the rumba
and the samba were
popular.
The folk singer
Leadbelly described
the harsh lives of
African Americans.
Woodie Guthrie wrote
ballads about the
Dust Bowl and the
Okies.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
During the New Deal, the federal government
provided funding for the arts for the first
time in history.
The Federal Art Project, Federal Writers’
Project, and Federal Theater Project were all
funded by the WPA.
WPA writers created a series
of state guidebooks that
recorded the nation’s history
and folklore.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Artists painted giant
murals in public
buildings across the
nation.
Photographers like
Dorothea Lange
created powerful
images of
impoverished
farmers and
migrant workers.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
This led to a drop
in congressional
funding.
Critics charged
that the Federal
Art programs were
promoting radical
or communist
views.
Though its funding was cut, the Federal Art
programs set a precedent for future funding of
the arts and humanities.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
Depression-era writers reflected the concerns
of Americans from all walks of life.
In The Grapes
of Wrath, John
Steinbeck told
the story of an
Okie family
escaping the
Dust Bowl.
Lillian
Hellman
portrayed
strong women
in her plays.
In Native Son,
Richard Wright
explored racial
prejudice.
Chapter 25 Section 1
The Cold War Begins
Section 1
Causes of the Depression
POW!POW!
Comic strips and comic books also were
very popular.
• Flash Gordon
• Dick Tracy
• Superman
Science Fiction
Detective Story
The first great
superhero comic

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Topic 13

  • 1. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Objectives • Discuss the weaknesses in the economy of the 1920s. • Explain how the stock market crash contributed to the coming of the Great Depression. • Describe how the Great Depression spread overseas.
  • 2. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Terms and People • Herbert Hoover – former Secretary of Commerce and Republican candidate for President in 1928 • speculation – when investors gamble that stock prices will rise • Black Tuesday – October 24, 1929, the day the stock market crashed • business cycle – periodic expansion and contraction of the economy
  • 3. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Terms and People (continued) • Great Depression – The collapse of the United States and world economies beginning in 1929 • Hawley-Smoot Tariff – high protective tariff passed in June 1930 that contributed to a worldwide depression
  • 4. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression How did the prosperity of the 1920s give way to the Great Depression? During the 1920s, many Americans enjoyed what seemed like an endless era of prosperity. But in 1929, the stock market crashed. Production fell, unemployment rose, and the economy went into a period of dramatic decline. Years after the Great Depression began, periodic contraction was seen as part of the business cycle.
  • 5. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression The Republicans took credit for the strong economy. Their presidential candidate was Herbert Hoover. He believed in voluntary cooperation between business and labor. In the 1928 presidential race, the Republican Party was confident.
  • 6. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Farmers could not afford to buy goods or repay their loans. The agricultural sector was in trouble. Rural farmers produced huge surpluses of food that depressed prices. Despite Hoover’s confidence, some saw signs of weakness in the economy.
  • 7. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Easy credit and installment buying lead people to purchase goods they can’t pay for. By 1929, Americans racked up more than $6 billion in personal debt — more than double the 1921 level.
  • 8. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Rising wages masked an uneven distribution of wealth. While factory workers’ wages rose 8%, factory output increased by 32%. As a result, worker incomes rose modestly, while rich investor incomes skyrocketed.
  • 9. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Until September 1929, the stock market continued to rise. Many people borrowed money to buy stock, assuming prices would continue to go up. Some economists feared that stocks were over-priced.
  • 10. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression On October 29th , the stock market went into a free fall as investors tried to sell at any price. Many who bought stocks on margin were wiped out. Billions of dollars were lost in a few hours. 16 million shares were sold on “Black Tuesday.”
  • 11. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression • In growth periods, workers are hired, wages rise, and demand for products increases. • In contraction periods, workers are fired, wages drop, and demand for products falls. The Great Crash was a hallmark of the nation’s business cycle. The economy periodically grows and then contracts.
  • 12. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression The stock market crash didn’t start the Great Depression by itself. Instead, it quickened the collapse of the U.S. economy.
  • 13. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression The banking system feels the effects of the crash first. People fear that their money will be lost so they run to the bank and attempt to withdraw their funds. But banks don’t have enough of their money on hand as cash. These bank runs cause banks to fail.
  • 14. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression • Factories closed, causing worker layoffs. • This lowered demand for goods. • By 1933, the unemployment rate reached 25%.
  • 15. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression The resulting drop in world trade only made the glut of American factory and farm products harder to sell. The strategy was a mistake. Other nations retaliated and raised tariffs as well. Congress passed the Hawley-Smoot Tariff to protect American manufacturers from foreign competition.
  • 16. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression As international trade falls, a global drop in business leads to a worldwide depression.
  • 17. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression There were several causes of the Great Depression. There is still disagreement over which are most important. Each of the following contributed to dangerous economic conditions: hardships in Europe and rural America uneven distribution of wealth speculation in the stock market increased personal debt
  • 18. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression • Examine the spread of unemployment in America’s cities. • Discuss the impact of the Great Depression on rural America. • Explain the human and geographical factors that created the Dust Bowl. Objectives
  • 19. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Terms and People • bread line – where charities or local agencies gave food to the poor • Hoovervilles – shantytowns set up on empty land in cities and named after the President • tenant farmers – rural farmers who lost their land but stayed on to work for larger landowners • Dust Bowl – millions of acres in the Great Plains that were destroyed when dust storms blew away the soil
  • 20. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Terms and People (continued) • Okies – Great Plains farmers forced off their land by the Dust Bowl • repatriation – policy whereby local, state, and federal governments encouraged or coerced Mexican immigrants – some of them U.S. citizens – to return to Mexico
  • 21. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression How did the Great Depression affect the lives of urban and rural Americans? The stock market crash signaled the end of boom times and the economy staggered into the Great Depression. Desperate poverty gripped the nation leaving a permanent impression on those who lived through it. Tested by extreme hardship, this generation forged a strong character and will to restore prosperity.
  • 22. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Between 1921–1929, the unemployment rate never rose above 4%. By 1933, however, it was near 25%. Those who managed to keep their jobs had their wages and hours cut. Few Americans understood the causes of the Great Depression, but everyone felt the impact.
  • 23. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression For many, the only food available came from public soup kitchens or bread lines run by charitable organizations. People sold their property to buy food.
  • 24. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression The homeless lived in empty railroad cars, in cardboard boxes, or in shacks built on public land or empty lots. Hoovervilles appeared in major cities across the country.
  • 25. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Bankers sold the land and equipment at auction. Some farmers became tenant farmers, working for bigger landowners. Others decided to leave in search of work elsewhere in the U.S. Between 1930 and 1934, nearly a million farmers lost their farms, homes, and farm equipment because they could not pay their mortgages.
  • 26. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression The remaining farmers on the Great Plains suffered a terrible drought, which led to the Dust Bowl. Dust storms destroyed millions of acres of farmland.
  • 27. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression • Farmers had dug up thick prairie grasses to plant wheat so there was nothing to hold the soil in place. • 100 mile-per-hour winds blew dust clouds 8,000 feet tall in Oklahoma, Texas, New Mexico, and Colorado. • Wildlife and farm animals suffocated in the choking winds. Millions of tons of topsoil were blown away in giant dust storms.
  • 28. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression In old trucks, they moved west or to northern cities. 800,000 Okies left Texas, Oklahoma, Missouri, and Arkansas alone. Rural states lost population during the 1930s. Those who could afford it bought distressed neighbors’ farms at low prices to build expanded commercial farms. Farmers who had lost their land, called Okies regardless of where they were from, were forced to leave.
  • 29. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Family life was hurt by the Great Depression. Some teens ran away and families broke up. America’s birthrate fell to its lowest level on record. Those who were still working felt guilty because friends and relatives were unemployed. Those who still had jobs lived in fear that their next paycheck would be their last.
  • 30. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Minorities suffered even more during the depression. • As Okies moved west to find work, Mexicans and Mexican Americans faced fierce competition for jobs. • Local governments urged repatriation for Mexican Americans. • Even in good times, African Americans were “last hired and first fired.” • Many were thrown off southern farms where they were sharecroppers.
  • 31. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression • Discuss how Hoover’s initial conservative response to the depression failed. • Explain the changes in the President’s policies as the crisis continued. • Describe how Americans reacted to Hoover’s relief programs. Objectives
  • 32. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Terms and People • localism – policy whereby problems are best solved at the state and local level and not by the federal government • Reconstruction Finance Corporation – created in 1932 to lend cash to investors to stimulate the economy • trickle-down economics – economic theory that held that money lent to large banks and corporations would in turn be invested in small businesses which would hire more workers
  • 33. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Terms and People (Continued) • Hoover Dam – huge public works project on the Colorado River that provided jobs, water for irrigation, and power • Bonus Army – a march on Washington in 1932 in which World War I veterans seek bonus payment early • Douglas MacArthur – supervised the forced removal of the Bonus Army, which angered many Americans
  • 34. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Why did Herbert Hoover’s policies fail to solve the country’s economic crisis? As the Great Depression spread misery across America, Herbert Hoover struggled unsuccessfully to respond to the nation’s problems. As a result of Hoover’s failed response, in 1932 Americans would turn to a new leader and increased government intervention to stop the depression.
  • 35. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Herbert Hoover did not cause the Great Depression, but Americans looked to him to solve the crisis. He tried a number of different approaches, but in the end he failed to discover the right formula for stopping the crisis.
  • 36. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Like most economists of the day, he believed that up and down swings in the economy were a natural part of the business cycle. It was thought that strong businesses would weather storms without the support of the government. At the start of the economic downturn, Hoover took a hands-off approach.
  • 37. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Asked businesses to keep wages, employment, and prices at current levels Called for tax cuts, lower interest rates, and public works Asked wealthy to donate more money to charity Hoover saw that he must do something:
  • 38. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression But volunteerism failed: • Towns and states didn’t have the necessary resources to deal with the depression. • Hoover did not support direct federal aid to individuals. Hoover put his faith in localism, a policy whereby problems are best solved at the local and state levels.
  • 39. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression The RFC gave billions of dollars to banks and large businesses. The idea was that they would lend to, and invest in, struggling businesses who would hire workers and thus end the depression. The RFC failed when businesses did not hire more workers. In 1932, Hoover urged Congress to create the Reconstruction Finance Corporation (RFC). The RFC employed a policy known as trickle down economics.
  • 40. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression One policy that did succeed was the construction of Boulder Dam (later renamed Hoover Dam) across the Colorado River. Started in 1930, the huge dam provided power for millions and irrigation for farm land, and put thousands to work.
  • 41. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression • Some blamed Hoover and some blamed capitalism. • Some were World War I veterans who wanted a bonus that was promised to them. • In 1932, those veterans formed the Bonus Army and marched on Washington. Many grew disillusioned during the Great Depression.
  • 42. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Hoover ordered General Douglas MacArthur to remove the veterans. He used tear gas, cavalry, tanks, and troops with fixed bayonets. Press photos of troops using excessive force angered the American public. 20,000 veterans set up camps and occupied vacant buildings. In July, police tried to evict them and riots erupted.
  • 43. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression The eviction of the Bonus Army doomed Hoover’s bid for re- election. Americans were ready for new leadership and a greater role for the government in solving problems.
  • 44. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression • Analyze the impact Franklin D. Roosevelt had on the American people after becoming President. • Describe the programs that were part of the first New Deal and their immediate impact. • Identify critical responses to the New Deal. Objectives
  • 45. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Terms and People • Franklin D. Roosevelt – American President elected at the height of the Great Depression • Eleanor Roosevelt – FDR’s wife and First Lady; known for her active role in the administration • New Deal – programs and legislation enacted by FDR during the Great Depression to promote economic recovery • fireside chat – informal radio broadcast in which FDR communicated with the American people • FDIC – Federal Deposit Insurance Corporation; government agency that insures bank deposits
  • 46. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Terms and People (continued) • TVA – Tennessee Valley Authority; government agency that built dams in the Tennessee River valley to control floods and generate electric power • CCC – Civilian Conservation Corps; government program that provided young men with jobs on environmental conservation projects • NRA – National Recovery Administration; government agency that developed codes of fair competition in industry, including minimum wages and prices
  • 47. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Terms and People (continued) • PWA – Public Works Administration; government agency that improved the nation’s infrastructure and created millions of jobs • Charles Coughlin – Roman Catholic priest who accused FDR of not doing enough to end the depression • Huey Long – Louisiana Senator and New Deal critic
  • 48. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression How did the New Deal attempt to address the problems of the depression? As poverty and homelessness gripped the country, many Americans wondered if the nation could survive the crisis. They hoped a new leader could bring back prosperity—and their faith in democracy.
  • 49. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Americans were ready for a change. In 1932, President Hoover ran for reelection. But he had little chance of winning. • Unemployment stood at 25%. • Bank failures had wiped out savings. • The hungry waited for food at soup kitchens.
  • 50. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Hoover’s opponent in the election was Democrat Franklin D. Roosevelt. • Harvard graduate • New York State senator • Assistant Secretary of the Navy • 1920 Nominee for Vice President • Polio survivor • Governor of New York
  • 51. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression The two candidates offered very different approaches to the problems of the Great Depression. Hoover State and local governments and private agencies should provide relief. Roosevelt Leadership should come from the federal government. Roosevelt won in a landslide.
  • 52. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Together with his “Brain Trust,” Roosevelt moved quickly to carry out his promise of giving Americans a New Deal. The legislation had three goals: relief, recovery, and reform. During his first 100 days in office, 15 bills were passed. First New Deal
  • 53. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Roosevelt began with the bank crisis. FDR declared a four-day bank holiday, closing the banks so they could get their accounts in order. In the first of many fireside chats, FDR explained that his actions were to halt bank failures. When the banks reopened, there were no more runs on the banks.
  • 54. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression FDR took other steps to reform the financial system. Insured bank deposits Federal Deposit Insurance Corporation (FDIC) Securities and Exchange Commission (SEC) Regulated the stock market Such measures helped restore confidence in the economy.
  • 55. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Roosevelt then turned to a series of New Deal programs to bring relief to the country. • The AAA sought to end overproduction and raise crop prices. • The TVA built dams to control floods and generate electricity. Some programs helped farmers and those in the rural South.
  • 56. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Many programs focused on job relief. Civilian Conservation Corps (CCC) Put young men to work improving national parks, forests, and wilderness areas Federal Emergency Relief Agency (FERA) Granted funds to state and local agencies to helped the unemployed Civil Works Administration (CWA) Gave people jobs on public- works projects
  • 57. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression The Public Works Administration (PWA) created millions of jobs. Workers built bridges, dams, power plants, and government buildings. These projects improved the nation’s infrastructure.
  • 58. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Roosevelt also took steps to speed economic recovery. National Recovery Administration (NRA) • Established codes of fair competition • Set minimum wages for workers and minimum prices for goods
  • 59. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Not everyone, however, supported the New Deal. Conservatives charged that it was making the government too powerful. • Destroying free enterprise • Undermining individualism Such critics formed the American Liberty League.
  • 60. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression While conservatives thought the New Deal did too much, others took the opposite position. Some argued that the New Deal did not do enough to end the depression. • Socialist Party • American Communist Party
  • 61. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression The opponents who gained the largest audience were Populist critics. Dr. Francis Townsend Proposed giving each person 60 or older $200 a month to spend Father Charles Coughlin Used his radio show to attack the New Deal, calling it communist Senator Huey Long Proposed a “Share Our Wealth” program that taxed the rich and gave money to the poor
  • 62. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Despite the critics, the New Deal was popular with most Americans. In his inaugural address, Roosevelt told Americans, “the only thing we have to fear is fear itself.” FDR succeeded in reducing people’s fear, but the depression was far from over.
  • 63. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression • Discuss the programs of social and economic reforms in the second New Deal. • Explain how New Deal legislation affected the growth of organized labor. • Describe the impact of Roosevelt’s court-packing plan on the course of the New Deal. Objectives
  • 64. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Terms and People • second New Deal – legislative activity begun by FDR in 1935 to solve problems created by the Great Depression • WPA – Works Progress Administration; agency that provided job relief through public-works projects • John Maynard Keynes – British economist who supported the policy of deficit spending to help end the depression • pump priming – economic theory that favored public-works projects because they put money in the hands of consumers who would buy more goods, stimulating the economy
  • 65. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Terms and People (continued) • Social Security Act – 1935 law that created a pension system for retirees, established unemployment insurance, created insurance for victims of work-related accidents, and provided aid for poverty-stricken mothers and children, the blind, and the disabled • Wagner Act – law that recognized the right of employees to join labor unions and gave workers the right to collective bargaining • collective bargaining – process in which employers negotiate with labor unions about hours, wages, and other working conditions
  • 66. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Terms and People (continued) • Fair Labor Standards Act – law that set a minimum wage and a maximum workweek and outlawed child labor • CIO – Congress of Industrial Organizations; labor organization founded in the 1930s that represented industrial workers • sit-down strike – labor protest in which workers stop working and occupy the workplace until their demands are met • court packing – FDR plan to add more justices to the Supreme Court after the Court ruled some New Deal legislation unconstitutional
  • 67. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression What major issues did the second New Deal address? As depression continued to grip the nation, Roosevelt continued to search for solutions. Many of the New Deal programs created by FDR continue to impact Americans today.
  • 68. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Though progress had been made toward easing the problems of the Great Depression, Roosevelt knew that much work still needed to be done. In 1935, FDR launched a new campaign to help meet the goals of relief, recovery, and reform. The second New Deal
  • 69. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression As FDR planned a new round of spending, critics charged that New Deal programs, and their high price tags, were wasteful. • The government was spending money it did not have. • The federal deficit had soared to $4.4 billion.
  • 70. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression • Public-works projects put money in the hands of consumers. • Consumer spending would stimulate the economy. • Deficit spending was needed to end the depression. Economists such as John Maynard Keynes disagreed. Deficit spending continued under the second New Deal.
  • 71. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression The Works Progress Administration (WPA) created millions of jobs on public-works projects. • Workers built highways and public buildings, dredged rivers and harbors, and promoted soil and water conservation. • Artists were hired to enhance public spaces.
  • 72. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression The Social Security Act created a pension system for retirees. It also provided: • unemployment insurance • insurance for victims of work-related accidents • aid for poverty-stricken mothers and children, the blind, and the disabled
  • 73. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Such benefits helped reduce poverty among the nation’s elderly.
  • 74. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression The government continued to give aid to farmers. The government provided price supports for agriculture. The Rural Electrification Administration helped bring power to isolated rural areas.
  • 75. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression The government also funded irrigation systems, dams, and other water projects in the West. Construction of a Dam, a mural by WPA artist William Gropper, was a tribute to workers on western dams.
  • 76. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Roosevelt believed that improving the standard of living for industrial workers would benefit the entire economy. Wagner Act Fair Labor Standards Act • Recognized the right of workers to join labor unions • Gave workers the right to collective bargaining • Set a minimum wage and maximum workweek • Outlawed child labor
  • 77. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression As union activity rose, a split emerged in the American Federation of Labor. The AFL represented skilled workers who joined craft or trade unions. The union made little effort to organize workers in the major industries. John L. Lewis formed the Congress of Industrial Organizations (CIO) to unionize industrial workers.
  • 78. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression In 1936, the CIO’s United Auto Workers Union staged a sit-down strike at General Motors. This success led to others, and union membership soared. After 44 days, GM recognized the new union.
  • 79. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression • In 1937, FDR proposed adding up to six new Justices to the Court. • Critics attacked his court-packing plan as an attempt to expand presidential power. • The failed plan weakened Roosevelt politically. After an overwhelming reelection victory, FDR decided to fight back against the Supreme Court, which had struck down many of his programs.
  • 80. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression The combination caused the economy to sink again, and unemployment soared. After the economy had begun to improve in 1935 and 1936, FDR cut back on government spending to reduce the deficit. At the same time, interest rates rose. With his support wavering, FDR did not try to push further reforms through Congress.
  • 81. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Chapter 25 Section 1 The Cold War Begins Chapter 22 Section 3 Effects of the New Deal Objectives • Describe how the New Deal affected different groups in American society. • Analyze how the New Deal changed the shape of American party politics. • Discuss the impact of Franklin D. Roosevelt on the presidency.
  • 82. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Terms and People ● Black Cabinet – African American leaders who served as unofficial advisers to FDR ● Mary McLeod Bethune – educator and member of FDR’s Black Cabinet ● Indian New Deal – program that gave Native Americans economic assistance and greater control over their own affairs ● New Deal coalition – diverse group of southern whites, northern blue-collar workers, midwestern farmers, and African Americans that united behind FDR and the New Deal
  • 83. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Terms and People (continued) ● welfare state – government that assumes responsibility for providing for the welfare of children and the poor, elderly, sick, disabled, and unemployed
  • 84. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression How did the New Deal change the social, economic, and political landscape of the United States for future generations? The New Deal affected people of many different backgrounds and ways of life. It also brought fundamental changes to the role of the federal government.
  • 85. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Eleanor Roosevelt inspired many women in her leadership role during the New Deal. • Transformed the role of First Lady from ceremonial to political activist • Traveled widely • Campaigned for FDR • Offered policy advice • Wrote a newspaper column
  • 86. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Other women also played important roles in the administration, such as Secretary of Labor Frances Perkins, the first female Cabinet member. However, the New Deal did not fight to end gender discrimination in the workplace. • The WPA and other agencies made an effort to employ men first. • Women could not work for the CCC.
  • 87. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression • The unemployment rate for African Americans was nearly 50%. • Many people urged FDR to help end racial discrimination. African Americans were hit especially hard by the depression. Roosevelt asked advice of members of his Black Cabinet, such as Mary McLeod Bethune.
  • 88. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression • Farm subsidies led landowners to evict sharecroppers. • African Americans often did not receive equal wages. • Domestic and farm workers were exempted from New Deal programs. Some New Deal measures unintentionally hurt African Americans. But he did not always listen. FDR refused to support an antilynching law, fearing political fallout.
  • 89. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression The New Deal’s Commissioner of Indian Affairs, John Collier, tried to improve living conditions for Native Americans. The Indian New Deal: • Provided funds to build schools and hospitals • Created an Indian Civilian Conservation Corps The Bureau of Indian Affairs encouraged native religions, languages, and customs.
  • 90. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression The Indian Reorganization Act of 1934 was considered the centerpiece of the Indian New Deal. This law restored tribal control over native lands.
  • 91. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Roosevelt and the New Deal united diverse groups of Americans into a political powerhouse. The New Deal coalition included southern whites, northern blue-collar workers, midwestern farmers, and African Americans. Democrats were now in the majority.
  • 92. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression • Social and ethnic divisions diminished. • Immigrant communities gained a greater sense of belonging. • Programs such as the WPA and CCC allowed people of different backgrounds to get to know one another. Roosevelt’s New Deal programs also helped unify a struggling nation.
  • 93. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression With the New Deal, FDR broke from the tradition of laissez-faire and greatly expanded the role of government. New Deal measures strengthened capitalism and encouraged the post-WWII economic boom. • Restored trust in the banks and the stock market • Increased homeownership • Protected workers • Helped modernize rural America
  • 94. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Thousands of WPA and PWA projects benefited communities—and local economies—across the country.
  • 95. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression In a major policy change, the New Deal established the principle that the federal government was responsible for the welfare of all Americans. At the same time, the New Deal led to the rise of the welfare state.
  • 96. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression • The government established 12 million acres of new national parks. • The CCC restored forests and preserved the environment. FDR also favored federal action to protect the environment. Despite its benefits, the TVA had a mixed environmental impact, disrupting natural habitats.
  • 97. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Finally, FDR and the New Deal changed the nature of the presidency itself.
  • 98. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Objectives • Trace the growth of radio and the movies in the 1930s and the changes in popular culture. • Describe the major themes of literature in the New Deal era.
  • 99. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Terms and People • The Wizard of Oz – popular depression-era film that promised dreams really can come true • Frank Capra – director whose films celebrated American idealism and the triumph of the common man over adversity • War of the Worlds – 1938 radio drama that was so realistic many people feared that Martians were actually invading • Federal Art Project – branch of the WPA that hired artists to create artworks for public buildings
  • 100. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Terms and People (Continued) • mural – large picture painted directly on a wall or ceiling • Dorothea Lange – FSA photographer who helped document the plight of America’s farmers • John Steinbeck – author whose depression-era classic The Grapes of Wrath tells the story of a family trying to escape the Dust Bowl • Lillian Hellman – playwright whose works featured strong roles for women and socially conscious subject matter
  • 101. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression How did the men and women of the depression find relief from their hardships in the popular culture? Entertainment helped Americans struggling to survive the depression escape their worries—at least for a time. Federal support for the arts added to the era’s rich cultural heritage.
  • 102. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Entertainment was big business during the 1930s. Movies, radio, and music reflected the mood of the country.
  • 103. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Most Americans went to the movies to escape their worries. • The Wizard of Oz • Snow White and the Seven Dwarfs • Frankenstein • Top Hat • Gone with the Wind
  • 104. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression In the early 1930s, gangster films such as Public Enemy reflected the public’s distrust of government. As the New Deal restored confidence, films such as G-Men began portraying government officials as heroes. Director Frank Capra focused on the triumph of the common man over adversity in such films as Mr. Smith Goes to Washington.
  • 105. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression • Radio networks such as NBC and CBS entertained millions. • People listened to comedy, drama, news, and FDR’s fireside chats. Radio was a vital part of everyday life.
  • 106. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Orson Welles’ 1938 radio drama War of the Worlds was so realistic that it caused a national panic when listeners thought that Martians were invading. Radio disc jockeys played the latest tunes on shows like Your Hit Parade and Make Believe Ballroom.
  • 107. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Music provided a happy diversion and a serious outlet for social concerns. “Swing” music played by “big bands” topped the charts. Latin music and dances like the rumba and the samba were popular. The folk singer Leadbelly described the harsh lives of African Americans. Woodie Guthrie wrote ballads about the Dust Bowl and the Okies.
  • 108. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression During the New Deal, the federal government provided funding for the arts for the first time in history. The Federal Art Project, Federal Writers’ Project, and Federal Theater Project were all funded by the WPA. WPA writers created a series of state guidebooks that recorded the nation’s history and folklore.
  • 109. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Artists painted giant murals in public buildings across the nation. Photographers like Dorothea Lange created powerful images of impoverished farmers and migrant workers.
  • 110. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression This led to a drop in congressional funding. Critics charged that the Federal Art programs were promoting radical or communist views. Though its funding was cut, the Federal Art programs set a precedent for future funding of the arts and humanities.
  • 111. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression Depression-era writers reflected the concerns of Americans from all walks of life. In The Grapes of Wrath, John Steinbeck told the story of an Okie family escaping the Dust Bowl. Lillian Hellman portrayed strong women in her plays. In Native Son, Richard Wright explored racial prejudice.
  • 112. Chapter 25 Section 1 The Cold War Begins Section 1 Causes of the Depression POW!POW! Comic strips and comic books also were very popular. • Flash Gordon • Dick Tracy • Superman Science Fiction Detective Story The first great superhero comic