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Unit 3 the Period
Between the Wars
Lesson 3 New Deal and Second
New Deal
Effects of the Depression



millions of unemployed
people
malnutrition in children
fewer marriages
More Effects

Women and African Americans
– often lost their jobs to white men
– Heavily discriminated
– Scottsboro Case
 the justice system ignored the civil rights
of African Americans
Failing Banks

Federal Deposit
Insurance Corporation
(FDIC) insures bank
deposits
Unsafe Stock Market

Securities and
Exchange Commission
(SEC) regulates stock
market
Desperate Plight of Farmers
Government pays farm subsidies
 Tennessee Valley Authority (TVA) builds
dams in the Tennessee River Valley to
control floods and create electricity

Problems in Industry

National Recovery Administration (NRA)
develops codes for industries to set
minimum wages for workers and minimum
prices for goods
Joblessness
Civil Works Administration (CWA) provides
jobs on public-works projects
 Public Works Administration (PWA) creates
jobs in construction
 Civilian Conservation Corps (CCC) provides
jobs for more than 2 million young men
 Federal Emergency Relief Act (FERA)
grants federal funds to state and local
agencies to help the unemployed

Opposition to the New Deal

The right thinks the New Deal makes the
government too powerful
– Told business how to operate, spending
money and increasing national debt

Former President Hoover thought it took
away individual freedom
Opposition to the New Deal
Left doesn’t think it goes far enough
 Former Populists thought more should be
done

– Francis Townsend (a doctor from CA) wanted
gov’t to give everyone over 60 $200/month
– Huey Long challenged Roosevelt over the
radio
Questions
How did the New Deal make sure that
people’s money was safe when investing?
 What part of the New Deal helped most
Americans get jobs?
 Do you think the New Deal was on target?
Why/Why not?

Second New Deal
11.6.2. Understand the explanations of the principal causes of the Great Depression and the
steps taken by the Federal Reserve, Congress, and Presidents Herbert Hoover and
Franklin Delano Roosevelt to combat the economic crisis.
11.65. Trace the advances and retreats of organized labor, from the creation of the
American
Federation of Labor and the Congress of Industrial Organizations to current
issues of a postindustrial, multinational economy, including the United Farm Workers
in California.
Terms

Second New Deal
– Spring 1935
– WPA
– By 1943 8 million employees
– 650,000 mi of highways
– Water Projects in the West
Economy

John Maynard Keynes
– Deficit spending
– Pump priming

Welfare State
– Social Security Act
 Flawed
Workers Rights

Wagner Act
– Collective bargaining
Fair Labor Standards Act 1938
 Minimum wage $0.25/hour
 AFL

– Skilled
CIO – Congress of Industrial Organizations
 Unskilled wokers

– Sit down strike
Challenges to New Deal

Supreme Court Opposes New deal
– Schechter Poultry v. United States
FDR “Court Packing
 Feb. 5, 1937

– Wanted to add 6 to 9

Change in Court
– Upheld Wagner Act
Results
Republican gains
 1935 – 1936 Economy improved

– 10% unemployment
– FDR reduced spending
– Federal Reserve increased interest rates
– Economy went down again
– Unemployment 20%

Republicans gained 7 senate seats and 75
House
Second New Deal
11.6.2. Understand the explanations of the principal causes of the Great Depression and the
steps taken by the Federal Reserve, Congress, and Presidents Herbert Hoover and
Franklin Delano Roosevelt to combat the economic crisis.
11.65. Trace the advances and retreats of organized labor, from the creation of the
American
Federation of Labor and the Congress of Industrial Organizations to current
issues of a postindustrial, multinational economy, including the United Farm Workers
in California.
Terms

Second New Deal
– Spring 1935
– WPA
– By 1943 8 million employees
– 650,000 mi of highways
– Water Projects in the West
Economy

John Maynard Keynes
– Deficit spending
– Pump priming

Welfare State
– Social Security Act
 Flawed
Workers Rights

Wagner Act
– Collective bargaining
Fair Labor Standards Act 1938
 Minimum wage $0.25/hour
 AFL

– Skilled
CIO – Congress of Industrial Organizations
 Unskilled wokers

– Sit down strike
Challenges to New Deal

Supreme Court Opposes New deal
– Schechter Poultry v. United States
FDR “Court Packing
 Feb. 5, 1937

– Wanted to add 6 to 9

Change in Court
– Upheld Wagner Act
Results
Republican gains
 1935 – 1936 Economy improved

– 10% unemployment
– FDR reduced spending
– Federal Reserve increased interest rates
– Economy went down again
– Unemployment 20%

Republicans gained 7 senate seats and 75
House