new deal 1931

Introduction

  • Overview of the discussion on the Great Depression and the New Deal.

  • Announcement regarding potential class cancellations and how students will be informed through iPod.

  • Personal note about the lecturer feeling unwell due to changing weather and dependence on caffeine.

Lecture Content

The Great Depression

  • Purpose of Discussion: The focus is on why the Great Depression occurred and what was done to address it rather than delving into an entire class on the topic.

  • The connection between changing weather and illness as a metaphor for unpredictability.

Class Preparation

  • Important Information for Students:

    • No study guide will be posted until next week since the exam is two weeks away.

    • This lecture will contain materials relevant for extra credit on the exam.

Exam Information

Format and Content

  • The exam is not for another two weeks from the Wednesday mentioned.

  • The extra credit question will involve selecting and explaining four specific New Deal programs.

  • The main lecture will discuss six New Deal programs featured in graphics from the textbook, which will be on the study guide.

  • Additional references include a total of about 56 New Deal programs.

Extra Credit Outline

  • Extra Credit Question: Identify and explain two programs from the First New Deal and two from the Second New Deal that are not included in the six identified on the study guide.

  • Total extra credit points available: 12 points (with three points per correct answer).

New Deal Programs Discussed

New Deal Phases

  • First New Deal: Initial focus on relief, recovery, and reform.

  • Second New Deal: Concentrated on establishing a safety net for future security.

Specific Programs Mentioned

First New Deal Programs

  1. Civilian Conservation Corps (CCC): Provides jobs and public works projects for the unemployed, especially in rural areas.

  2. Federal Deposit Insurance Corporation (FDIC): Insures bank deposits to protect consumer savings in case of bank failures.

  3. Agricultural Adjustment Act (AAA): Intended to stabilize agricultural prices by controlling production.

  4. Civil Works Administration (CWA): Provided jobs during the winter of 1933-34 that were construction based projects.

  5. National Youth Administration (NYA): Focused on providing work and education for youth.

  6. Social Security Administration (SSA): A system to provide monetary assistance to those who are retired or disabled.

Second New Deal Programs

  1. Works Progress Administration (WPA): Offered jobs for various public projects, including infrastructure and the arts.

  2. National Labor Relations Board (NLRB): Created to enforce labor rights and improve working conditions through negotiation.

  3. Resettlement Administration (RA): Helped relocated farmers who were adversely affected by the economic downturn.

  4. Rural Electrification Administration (REA): Worked to bring electricity to rural areas.

Historical Context

Causes of the Great Depression

  • Stock Market Crash of 1929:

    • Date of crash: October 1929.

    • The crash resulted from extensive trading with inflated stocks, leading to a massive decrease in economic stability.

    • Outside the direct impact, it interconnected with global markets and affected trade significantly.

  • Hoover's Response:

    • Hoover's administration lacked an effective strategy to address the impending economic collapse.

    • His philosophy leaned towards individualism, advocating for personal resilience rather than government intervention.

The Aftermath of Hoover's Policies

  • Hoover implemented two main ideas:

    • Poor Program: Intended to offer minimal aid, likened to stimulus checks during COVID but ultimately ineffective.

    • Reconstruction Finance Corporation (RFC): Meant to support businesses rather than individuals, leading to moral hazard where funds were pocketed by wealthier executives.

  • These policies did not significantly alleviate suffering among the majority and were criticized for prioritizing corporate interests over public welfare.

Franklin D. Roosevelt's New Deal

Introduction to FDR

  • FDR's innovative approach starkly contrasted with Hoover's policies.

  • Known for his strong leadership during a transformative era, he served four terms, establishing a foundational relationship with other global leaders.

  • Example of significant personal struggle (polio) that allowed him to empathize with the American public.

The New Deal Framework

First New Deal Goals

  1. Relief: Immediate support for unemployed individuals and revitalization of small businesses.

  2. Recovery: Long-term economic recovery strategies, including job creation.

  3. Reform: Establish safeguards to prevent future economic crises.

Second New Deal Goals

  • Focused more on sustainability, creating a robust safety net to withstand any future economic shocks.

  • Initiatives aimed at ensuring educational access and economic security through programs like the NYA and Social Security.

Conclusion

  • Emphasis on the importance of the New Deal in shaping modern America and preventing similar economic disasters in the future.

  • Encouragement to watch supplemental resources (e.g., Crash Course videos) for deeper understanding.

Here are the definitions of the terms based on the provided notes:

  • Herbert Hoover: His administration lacked an effective strategy to address the impending economic collapse, advocating for individualism and personal resilience rather than robust government intervention. He implemented the "Poor Program" and the "Reconstruction Finance Corporation (RFC)".

  • Franklin Delano Roosevelt: Known for his strong leadership during a transformative era, he served four terms and introduced the New Deal, which starkly contrasted with Hoover's policies. He focused on relief, recovery, and reform, and his personal struggle with polio allowed him to empathize with the public.

  • Works Progress Administration (WPA): A Second New Deal program that offered jobs for various public projects, including infrastructure and the arts.

  • Civilian Conservation Corps (CCC): A First New Deal program that provided jobs and public works projects for the unemployed, particularly in rural areas.

  • Social Security Administration (SSA): A system established under the Second New Deal to provide monetary assistance to those who are retired or disabled.

  • Federal Deposit Insurance Corporation (FDIC): A First New Deal program that insures bank deposits to protect consumer savings in case of bank failures.

  • Reconstruction Finance Corporation (RFC): A program implemented by Hoover's administration that was meant to support businesses rather than individuals. It was criticized for leading to moral hazard, where funds were pocketed by wealthier executives.

  • Poor Program: An ineffective program implemented by Hoover's administration that was intended to offer minimal aid.

  • Great Depression: A severe economic downturn that occurred in the 1930s, caused by factors such as the Stock Market Crash of 1929, leading to massive economic instability. The lecture focused on understanding its causes and the responses to it.

  • First New Deal: The initial phase of FDR's New Deal, which focused on immediate relief for the unemployed, economic recovery, and establishing reforms to prevent future crises. Programs included the CCC and FDIC.

  • Second New Deal: The later phase of FDR's New Deal, which concentrated on establishing a robust safety net for future security, including initiatives like the WPA and SSA.

  • Stock Market Crash of 1929: The event in October 1929 that resulted from extensive trading with inflated stocks, leading to a massive decrease in economic stability and significantly affecting global markets.