1. The New Deal
Blessing or Curse?
J. MARSHALL, 2008

2. Reasons for the Crash and other
factors that led to depression
• The stock market was a relatively new thing stocks vs. gold (traders and buyers were
inexperienced)
• Buying on margin - a license to print money
• Panicked selling over almost a week caused
the Wall St. market to collapse on Black
Tuesday, Oct 29, 1929
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3. Other economic problems
• The price of wheat had been falling since 1927:
over-production didn’t drop so prices did farmers’ mortgages suffered: no cash means no
new tractors
• Manufacturers were over-producing consumer
goods = few consumers = layoffs = less
spending money = fewer consumers
• USA protectionist tariffs = trade barriers for all
• Germany’s inability to pay reparations affected
the Allies’ ability to repay loans to USA

4. The Beginning was Worst:
Looking at Canada
• Canada’s economy was very closely connected to
the USA - trading/branch plants/investors:
– Wheat (40% of world supply)
– Newsprint (65% of world supply)
• As the economy failed people lost their jobs and
the ability to pay rent: vagrancy meant jail time
• To collect POGEY or the “DOLE” (Relief
vouchers) one had to publicly declare her poverty:
why would so may do without relief?
• Private charity/soup kitchens

5. Laissez Faire - let it be
Women and
their children
suffered as
men looked for
work, often
“riding the rods”

6. Herbert Hoover
1928-1932
• Rich/Republican
• Blindsided by the
Depression
• Didn’t want to threaten
the “American Way of
Life” (free enterprise)
= Hoovervilles

7. On the eve of
FDR’s
inauguration

8. Franklin D. Roosevelt
1932-1945
• Democrat
• Called Keynes a “fool”
(interesting)
• “Nothing to fear…”
• New Deal - 3 Rs
• First 100 Days
Relief
Recovery
Reform

9. FDR listened to the
economist:
“SPEND YOUR
WAY OUT OF
DEPRESSION”
John Maynard Keynes
(“Canes”)
ug
ig eno
b
ent is
m
govern e problem
Only
h
l with t
to dea
h

10. Herbert Hoover vs.
Roosevelt
• Hoovervilles
• Hoover’s strategy was to lower interest rates the problem was too big!
• FDR’s 100 days in 1933
–
–
–
–
–
Close banks for three days
New Deal = “alphabet agencies”
Every letter to the President will be answered
End Prohibition
create CONFIDENCE and give LEADERSHIP

11. min
nal Recovery Ad
Natio
Tennessee V
alley
Authority
W o r ks
Public
Admin Works
Progress
Admin
gricultural
A
Adjustment
Admin

13. Mass Communication
• Fireside Chats the soap box is dead!
• All letters to the
President will be
answered! (1000s / day)

14. Millions were Suffering
• Sharecroppers were displaced
ex. Grapes of Wrath

15. Eleanor Roosevelt

16. Alphabet Agencies
• Success was
mixed
C
po
or
eS
at
r
te?
ta

17. What did they do?
WPA?
Make work?

18. How successful
were they?
• Is a minimum wage
a good thing?
• Predict outcome for workers?
…for owners?
…for the country?
Blue Eagle!

19. W5
?
GOP?

20. Separating myth from reality…

21. FDR
Hopkins
“Just in case
they ever
wanted to
slow down,”
Mar 5, 1936

23. 1937 saw a new recession.

24. Meanwhile What About the Main Line Express?

25. Bias?

28. When did the debt rise the most?

29. Search for arguments on the
effectiveness of
The New Deal:
•
•
•
•
Statistics New Deal
Effectiveness New Deal
Criticism New Deal
New Deal Extended the
Depression
• Benefits of the New Deal
• Damage of the New Deal