Transcript File

Hey! So you need a little extra
help with understanding the
New Deal? No problem.
Before you can understand the
New Deal, you have to understand
the Great Depression and to
understand the Great Depression,
you have to understand a little bit
about the U.S. economy before
this time period.
The United States emerged
from WWI as a world power.
Even so, Americans rejected a
major role in world affairs.
Instead the nation turned inward,
seeking prosperity and a “return to
normalcy.”
We don’t need a
war to jumpstart
the economy!
President Warren Harding
While the economy flourished
in the 1920s (without a war), the
1920s were anything but
“normal.”
What is that?
Why an economic BOOM you
ask?
Well, companies successfully
switched from producing military
goods to consumer goods.
Things like:
1) Refrigerator
s
2) Radios
3) Cars
As more goods came to the stores,
price dropped. People also were
making more money and therefore,
had more to spend.
To encourage spending businesses
offered installment buying or
BUY NOW!
buying on credit.
PAY LATER!
The government helped boost the
economy. To encourage the
buying of products “made in
America,” the government placed
a tax or protective tariff on goods
made outside the U.S..
In addition to buying things like
radios and cars, Americans also
bought stocks. Don’t ask me to
explain stocks, it’s confusing to even
me. I’m just being “honest”
I do know however, that many
people were borrowing money to
buy stocks. To make matters worse,
many of the stocks people were
buying were in companies that were
not doing so
hot.
I wouldn’t do
that if I were you!
Nevertheless, people kept buying
stocks. Then, in 1929, the stock market
CRASHED!
But I put all my
money into
stocks!!
I told you so!
The CRASH + companies producing
more goods than people could afford
(overproduction) + banking crisis
(banks were not getting paid back for
the loans they gave out) = GREAT
DEPRESSION!
That doesn’t look
good!
I wasn’t around, but the between
1929 and 1933, things were not
pretty! Unemployment, growing
poverty, and people using
newspapers as blankets to escape
the cold. And when people turned
to their President, he
turned his
back. I’m of
course not referring
to
myself, but rather the infamous
Herbert Hoover.
Perhaps America had been dealt a bad
deal. Luckily, the next President (this
guy I like) offered the United States a
NEW DEAL!
The man’s got my
vote!
What is the so-called “New Deal?”
Well, it was a set of government
programs created to improve the
economy. Jefferson would be rolling in
his grave (he was all about that no
government, “laissez-faire” approach
to the economy).Folks, you will get
of this depression
and you will with
the help of YOUR
government!
What did FDR say the government
will do? Good question! Well, the
New Deal had three goals and
programs were created to meet this
goals:
1) Relief for the
jobless
2) Recovery
3) Reforms to
prevent future
How did they provide RELIEF?
1) FERA (Federal Emergency Relief
Fund)provided $ to states for relief
agencies.
2) CCC (Civilian Conservation
Corps)
OH THANK YOU!
YOU!
employedTHANK
jobless
adults.
THANK YOU!
THANK YOU!
How did they provide RECOVERY?
1) NRA (National Recovery
Administration)
hoped to keep prices stable
2) PWA (Public Works Administration)
$ used to build large projects and
in turn,I didn’t know the
PWA builtpeople
the
provide
jobs
Lincoln Tunnel!
I love that tunnel!
How did they provide REFORM?
1) FDIC (Federal Deposit Insurance
Corp) protected bank deposits up to
$2,500
2) SSA (Social Security Act)
guaranteed retired people a
pension. I just got my first
Social Security
check! Thank you
FDR!
So was FDR’s New Deal a success or a
failure?
Another good
question!
Let’s
look
Arguments
for the New Deal
Arguments
againstat
the
New Deal
the scorecard:
1) Gave too much power to the 1) The New Deal eased
federal government
1) Led to a massive increase in
the national debt
1) FDR’s programs did not end
the Great Depression
(would not come until 1941
(WWII))
2)
3)
4)
5)
6)
Tough call! What do
you think?
many problems
Employed millions of
jobless people
Ended the banking crisis
Saved poor families from
losing their homes
New Deal programs built
dams and bridges
Restored people’s faith in
government.
Thank you for spending time with
me! I hope you now better
understand the Great Depression
and the New Deal. Good luck on the
Regents! Study, study, study!
And don’t forget to
watch my movie!