Unit 5
Unit 5– Depression and New Deal
The Great Depression Begins
Harding’s Election and Causes of Depression- See Intro Sheet
I.
Hardship and Suffering During the Depression
The Depression Devastates People’s Lives
 Great Depression had an impact on people’s lives; it brought hardship, homelessness, and
hunger to millions
1) The Depression in the Cities

In cities across the country, people lost their jobs, were evicted from their homes
and ended up on the streets
 DEFINE shantytowns, soups kitchens, bread lines

Conditions for African-Americans and Latinos were worse; their unemployment rates
were higher and they were paid lower
 Both were also subjected to violence; Latinos were even exported
2) The Depression in Rural Areas
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What was the advantage the rural areas had over cities?
Many farmers lost their properties through foreclosures (EXPLAIN)
3) The Dust Bowl

A drought that began in the early 1930s wreaked havoc on the Great Plains.
 What was a major cause of this?

The Dust Bowl was the name given to the region that was hit the
hardest – parts of Kansas, Oklahoma, Texas, New Mexico, and Colorado.
 What was an Okie?
Effects on the American Family
 The economic conditions of the Great Depression put severe pressure on family life, but for
most Americans the family stood as a source of strength
1) Men in the Streets

Many men had difficulty coping with unemployment because they were accustomed to
working and supporting their families.
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Some men abandoned their families and became “hoboes”
DEFINE direct relief
2) Women Struggle to Survive
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Women worked hard to help their families survive adversity during the Great
Depression
Many women began to work outside of their homes.
 How was this often received?
3) Children Suffer Hardships
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Poor diets and lack of money led to serious health problems for children.
Schools often were closed because tax revenues were falling in communities
What were “Hoover tourists”?
4) Social and Psychological Effects

The hardships of the Great Depression had a tremendous social and psychological
impact
 Suicide rate rose more than 30% between 1928-1932

Many Americans had to accept compromises and sacrifices that affected them for the
rest of their lives
 Stopped going to doctor or dentist
 Put off having children or decided not to have kids at all
 Gave up dreams of going to college

What habits were developed and stuck with people?
II.
Hoover Struggles with the Great Depression
Hoover Tries to Reassure the Nation
 After the stock market crash of 1929, President Hoover tried to reassure Americans that the
nation’s economy was on sound footing
1) Hoover’s Philosophy

Rugged Individualism – the idea that people should succeed through their own efforts;
they should take care of themselves and their families.
 What was the government’s role?
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2) Hoover Takes Cautious Steps
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He asked employers not to cut wages or lay off workers
He asked labor leaders not to demand higher wages or go on strike
He created a special organization to help private charities generate contributions to the
poor.
 None of these steps worked and the Depression continued to deepen.
3) Boulder Dam

A project that Hoover approved that did make a difference; the building of the Boulder
Dam
 What was the importance of this massive project?
4) Democrats Win in 1930 Congressional Elections
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The Democrats took advantage of anti-Hoover sentiments and took control of the House
of Representatives and almost one the Senate
Americans expressed their anger in other ways:
 Farmers destroyed crops rather than selling them at a loss; refused to work their
fields; blocked roads so crops could not get to market (raise prices); used force to
prevent authorities from foreclosing on farms
 IDENTIFY Hoovervilles, Hoover blankets, Hoover flags
Hoover Takes Action
 Hoover began to soften his position on government intervention in the economy and took a
more activist approach to the nation’s economic troubles
1) Hoover Backs Cooperatives
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What was the Federal Farm Board?

National Credit Corporation loaned money to small banks to help them stave off
bankruptcy
2) Direct Intervention

With a presidential election looming, Hoover appealed to Congress to pass a series of
measures to reform banking, provide mortgage relief, and funnel more money into
private investment.
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Federal Home Loan Bank Act
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Reconstruction Finance Corporation
Gassing the Bonus Army
 In 1932 an incident further damaged Hoover’s image and public moral.
1) The Patman Bill Denied
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The Bonus Army (WW I vets and their families) marched to DC to demand a bonus that
they were in due in 1945 be paid immediately.
The Senate refused to approve of the Patman Bill and Hoover told the Bonus Army to go
home; most did but 2,000 stayed around.
2) Hoover Disbands the Bonus Army
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Hoover decided that the Bonus Army should be disbanded and ordered Gen. Mac
Arthur to roust the veterans
What did Mac Arthur do and how did it effect Hoover?
The New Deal
I.
A New Deal Fights the Depression
Americans Get a New Deal
 The 1932 presidential election showed that the Americans were clearly ready for a change
1) Electing Franklin Delano Roosevelt (FDR) – Democrat – governor of New York
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Wins an easy victory over Hoover and the Democrats; and the Democrats also win
control of both houses of Congress
Why was this an easy victory for FDR and the Democrats?
2) Waiting for FDR to take over

FRD began to formulate a set of policies (the NEW DEAL) that would deal with problems
caused by the Great Depression (Relief, Recovery, Reform)
3) The Hundred Days
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On taking office, FDR launched a period of intense activity known as the Hundred Days –
15 major pieces of legislation
What was the Emergency Banking Relief Act?
4) An Important Fireside Chat
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DEFINE fireside chats =
What was their significance?
5) Regulating Banking and Finance
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Glass-Steagall Act = established the Federal Deposit Insurance Corporation (FDIC) – it
provided federal insurance for individual bank accounts
Federal Securities Act = required corporations to provide complete information on all
stock offerings
 What is the SEC?
Helping the American People: See group worksheet from block day- NEW DEAL PROGRAMS
 The Roosevelt administration also implemented programs to provide relief to farmers and
other workers; also attempted to stimulate the economy
The New Deal Comes Under Attack
 DEFINE deficit spending =
1) The Supreme Court Reacts
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Supreme Court ruled some New Deal programs unconstitutional.
What was FDR’s “court-packing” scheme?
2) Three Fiery Critics
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II.
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Charles Coughlin = The ‘Radio Priest” wanted a guaranteed national income and
nationalization of banks. Anti-semitic views eventually cost him support.
Dr. Francis Townshend = believed FDR was not doing enough for the poor and
elderly. He devised a monthly pension plan for the aged.
- Huey Long = the “King Fish” proposed a nation wide social program called “ShareOur-Wealth”. Everyone would have a home and income.
The Second New Deal Takes Hold
The Second Hundred Days
 By 1935 the Roosevelt Administration was seeking ways to build on the programs
established during the Hundred Days. (The Second New Deal)
 Who pushed the President in this direction?
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 The election of 1936
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Republicans ran Alfred Landon (governor of Kansas)
Democrats ran FDR and he won easily.
 What (2) groups voted Democrat for the 1st time?
Roosevelt Extends Relief
 As part of the Second New Deal, the Roosevelt administration and Congress set up a series
of programs to help youths, professionals, and other workers.
Works Progress Administration (WPA)- See Group Chart
Improving Labor and Other Reforms
 FDR brought about important reforms in the areas of labor relations and economic security
for retired workers.
1) Improving Labor Conditions

After the Supreme Court ruled the NIRA unconstitutional, FDR and Congress passed the
Wagner Act or National Labor Relations (3 provisions)
1.
2.
3.
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Fair Labor Standards Act = maximum hours per week (44), minimum wage ($.25), set rules
for those under 16 and banned hazardous work for 18 and under
1) The Social Security Act – 1935- See Reading Activity Sheet
III.
The New Deal Affects Many Groups
 The New Deal represented an important opportunity for minorities and women, but what
they gained was limited:
1. Women- Frances Perkins – 1st female cabinet member (Sec of Labor)
2. African-Americans- FDR appointed more than 100 African-Americans to key positions in the
government
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FDR Creates the New Deal Coalition
 DEFINTION = an alignment of diverse groups dedicated to supporting the Democratic Party
(Southerners, urban groups, blacks, union workers)
1) Labor Unions Flourish
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1933-1941 membership grew from 3 million to 10 million
IV.
1930’s Culture- See worksheet
V.
The Impact of the New Deal
 By 1939 the New Deal was effectively over, and FDR was increasingly concerned with events
in Europe, particularly Hitler’s rise to power.
1) Supporters and Critics of the New Deal
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Conservatives thought that FDR’s policies made the federal government to large and to
powerful; stifled free enterprise and individual initiative
What did liberals think?
2) Expanding Government’s Role in the Economy
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New Deal gave the President the power to have a more active role in the economy.
HOW?
The federal government, however, began getting deeper into debt from all the
government spending plans
3) Protecting Worker’s Rights
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New Deal legislation set standards for wages and hours, banned child labor, and
ensured the right of workers to organize and collectively bargain.
4) Banking and Finance

New polices were enacted (SEC + FDIC) to regulate the stock market and to look over
the banking industry.