Download The Recession of 1937-1938 and the End of the

The Recession of
1937-1938 and the
End of the Recession
1939-1941
By mikhaela barnes
Ib history 11
The Recession of
1937-1938 and Why
it Occurred
Theodore d. Roosevelt
-  Born: January 30,
1882
-  Presidential term:
March 4, 1933 –
April 12, 1945
-  Part of the
Democratic Party
-  Born into a wealthy
The Recession of 1937-1938
-  In August of 1937, the economy collapsed
because of massive government spending
which led it into a recession.
-  A Recession is a period of temporary
economic decline during which trade and
industrial activity are reduced, generally
identified by a fall in GDP in two successive
Roosevelt's role in the recession
-  Roosevelt came into office after the 25th
president of the united states, herbert
hoover
-  Throughout his presidency, roosevelt
placed money into public works projects,
social insurance programs and other types
Reasons for the recession
-Three supposed reasons for the recession-
-  Inflow of gold from europe and an artificial increase in the
dollar gold exchange ratio caused inflation
-  Governments union and wage policies maintained high
real wages in the face of stagnating productivity
-  Heavy government regulation made the stock market
extremely volatile and susceptible to otherwise minor
changes
Reasons for the recession (continued)
-  The debt of the government went
up as roosevelt spent money
-  Close to that time, federal reserve
raised reserve ratio requirements
for member banks, leading to a
Economy during roosevelt's presidency
Keynesian
Economics
John Maynard
- 
developed by the
British economist John
Maynard Keynes during
the 1930s in an attempt
to understand the Great
Depression.
-  Keynes advocated
increased government
Keynesian Economics Role in Helping with the
Economy
-  the Great Depression provided confirmation of
Keynes’s ideas.
-  The real trouble began with the sharp
reduction in aggregate demand. The
recessionary gap created by the change in
aggregate demand had persisted for over a
decade.
Keynesian Economics Role in Helping with the
Economy
-  Keynes’s theory is the assertion that aggregate demand—
measured as the sum of spending by households,
businesses, and the government—is the most important
driving force in an economy.
-  Keynesian economists strongly believe that government
intervention through public policies that strive to achieve
full employment and price stability.
- 
(Keynes argued that expansionary fiscal policy
- 
Keynesian Economics Role in Helping with the
Economy
Recessi
onary
Gap
-  Potential
Output
Wagner-Steagall Housing Act and Fair
Labor Standards Act
Wagner-Steagall Housing Act of 1937
-  The Act required that
for each new public
housing unit created,
a unit of substandard
quality must be
removed. This oneto-one policy ensured
that the federal
program would
Wagner-Steagall Housing Act of 1937 (continued)
-  Operational decisions were left to local
authorities, ensuring that communities
that did not want public housing could
avoid it and those that did could
determine the project’s location,
virtually guaranteeing that housing
projects would remain racially
How it Helped the Economy
- The Housing Act of 1937 set
especially low maximum income
requirements for public housing
residents. This policy was intended to
alleviate fears that public housing
would compete with the private
Fair Labor Standards Act
-  The Fair Labor
Standards Act (FLSA) is
a federal law which
establishes minimum
wage, overtime pay
eligibility, recordkeeping,
and child labor
standards affecting fulltime and part-time
Fair Labor Standards Act (Continued)
-  Payment of the minimum wage;
Overtime pay for time worked over
40 hours in a workweek;
Restrictions on the employment of
children; and
Recordkeeping.
Why Did it Happen?
-  Throughout the 1900’s there had been numerous workrelated court cases
-  It wasn’t until the court case West Coast Hotel Company
vs. Parrish that Roosevelt understood the need for a
change in the work environment
-  He turned to American sociologist and workers-rights
advocate who served as the U.S. Secretary of Labor,
Frances Perkins
Run up to World War
Two and the Impact
it had on the
EConomy
Run Up to World War TWo
-  The Great Depression had started a decade
before, leaving much of the world unemployed
and desperate.
-  During the Beginning of WW2 the United
States did its best to remain neutral amongst
all of the chaos going on throughout the world.
As a Result, the United States had passed
The World at the Beginning of World War Two
- 
Germany, Italy, and
Japan were testing
the newly founded
League of Nations
with multiple
invasions and
occupations of
nearby countries
- 
China vs. Japan
- 
Nationalism was
sweeping through
World War Two ending the Great Depression
-  The war had provided a demand for newer
and better technology and industry
-  Due to the high demand for war planes, the
U.S. created an entirely new market for planes
-  In a genius marriage of finance and policy, the
government founded a market was called the
Defense Plant Corporation's role in Helping the
Economy
-  The DPC was run by a committee of publicminded businessmen from all stripes of
commerce
-  Before the DPC, the government’s financial
capital spending accounted for only 5% of the
annual U.S. investment in the industrial capital
-  After the DPC, the U.S. government
Impact of the Social
Security Act
Social Security Act
-  An act to provide for the general welfare by
establishing a system of Federal old-age
benefits, and by enabling the several States to
make more adequate provision for aged
persons, blind persons, dependent and
crippled children, maternal and child welfare,
public health, and the administration of their
Social Security Act (Continued)
-  This helped
to provide
financial
security in
the form of
regular
payments to
Cons of the Social Security Act
-  Some people did not like the Social
Security Act because is castigated
hard working people by making them
pay into the system
-  Also people thought the country was
going towards a militaristic regimented
Social SEcurity Act
Propaganda
Aid to Families with
Dependent Children (AFDC)
Aid to Families with Dependent Children (AFDC)
-  AFDC (Aid to Families with
Dependent Children) is a
program administered and
funded by Federal and State
Aid to Families with Dependent Children (AFDC)
(continued)
-as established by the Social Security
Act of 1935 as a grant program to
enable states to provide cash welfare
payments for needy children who had
been deprived of parental support or
care because their father or mother was
How AFDC affected states
-  All 50 states, the District of Columbia, Guam, Puerto
Rico, and the Virgin Islands operated an AFDC program
-  States defined “need,” set their own benefit levels,
established (within federal limitations) States were
required to provide aid to all persons who were in classes
eligible under federal law and whose income and
resources were within state-set limits.
Impact of Wendell Wilkie’s Run for
President in 1940
Wendell Willkie
-  Born February
18,1892
-  Married Edith
Wilkie
-  Earned his law
degree from
Wilkie’s Campaign
-  Willkie ran a powerful campaign by opposing
Roosevelt’s “New Deal”, this criticism is what
made him the underdog candidate for
Republican Nomination of 1940
-  Despite certain hurdles, he was nominated for
the 6th ballot
Wilkie’s Campaign (Continued)
-  Argued how the Great Depression had gone down under
Roosevelt’s term .
-  However, Due to Hitler's forces bombing London in 1940,
Willkie changed his argument to him would be a better
Chief Executive for the U.S.
-  At one point, Wilkie took on a strong streak of
isolationism .
-  In late October, New York Times had declared his “Anti
When the Great Depression
Ended and Why
When did the Great Depression End?
-  The Great Depression ended in 1939
-  The Depression itself ending could be
contributed to a number of factors;
-  Keynesian Economics
-  The Social Security Act as well as other acts
that were passed
Keynesian Economics in Ending the Great
Depression
-  Keynesian economics proved that
Keynes’s theory is the assertion that
aggregate demand—measured as the
sum of spending by households,
businesses, and the government—is
the most important driving force in an
Social Security Act, Wagner-Steagall Housing Act
andsecurity
the Fair
Standards
Act welfare by
-  The Social
ActLabor
provided
for the general
establishing a system of Federal old-age benefits, and by
enabling the several States to make more adequate
provision for aged persons, blind persons, dependent and
crippled children, maternal and child welfare, public
health, and the administration of their unemployment
compensation laws.
-  The Wagner-Steagall Housing Act helped to ensure that
housing across america would multiply in quality, not
Afdc
-  A program funded by
the government that
helps provide for
needy families. This
helped to help family’s
who had hit hard times
when the Great
World War 2 and its Role in helping to End the Great
Depression
-  World War two created a need for new war
industry and technology, as a result more
production of war materials were created and
the top among them being airplanes.
-  Due to the Accelerated need for airplanes, the
DPC specifically created a market for
airplanes which caused a major jump in the
OPCVL
The
Approva
l Rating
for FDR
as
Origin
The creators of this piece,
Frank Newport and Joseph
Carroll, comes from a
statistics website called
gallup. This is a table
showing the percent approval
rating of FDR from
1939-1940. This Graph is
Purpose
The purpose of this piece is to show FDR’s
Approval rating over a course of two years. This
informs the audience as to how the american
people of that time approved or disapproved of
the way FDR handled certain situations.This can
also show how effective FDR was during the time
of his presidency.
Value
The Gallup Website that this poll came from is credible and is
even used in media reports. The graph itself shows polls
based off of the American people. The period of time shows
how the American people viewed FDR’s actions which may
shed light on how bad things were in that period of time.
Things such as World War Two as well as the re-election
were the two big things that were occurring during this time.
The polls not only show his approval rating, but how the
people approved of him running the country as well as his
Limitations
Although this table shows what some of the people thought of
FDR, this table does not show 100% of what the American
people thought of. This table also does not show what type of
politics the American people believed it. Just because the
polls may be fairly accurate, they are not 100% accurate. The
polls do not show what the majority of the people were in
terms of race or gender.
Content: “Presidential Job Approval: Franklin D. Roosevelt”
Bibliography
https://mises.org
www.history.com
www.la.utexas.edu
www. 2012books.landbucket.org
www.study.com
www.theatlantic.com
www.dol.gov
www.bloomberg.com