The Great Depression and The New Deal
The Great Depression and The New Deal
the
New Deal
and
the
Heather E. Schwartz
Great Depression
the
New Deal
and
the
Heather E. Schwartz
Consultant
Jennifer M. Lopez, NBCT, M.S.Ed.
Teacher Specialist—History/Social Studies
Office of Curriculum & Instruction
Norfolk Public Schools
Publishing Credits
Rachelle Cracchiolo, M.S.Ed., Publisher
Conni Medina, M.A.Ed., Editor in Chief
Emily R. Smith, M.A.Ed., Content Director
Véronique Bos, Creative Director
Robin Erickson, Art Director
Michelle Jovin, M.A., Associate Editor
Mindy Duits, Senior Graphic Designer
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Write It!. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Glossary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Your Turn!. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
3
A Country’s Collapse
The beginning of the twentieth century was a time of change
for the United States. During the 1920s, many people lived
lives of luxury. As the U.S. economy moved more toward an
industrialized society, some people struggled. But for many,
life was easy. They had good jobs and money to spend. They
overlooked—and sometimes even ignored—the signs that
trouble was brewing. The U.S. economy was about to collapse.
In 1929, the worst happened, and millions of people lost their
jobs. People were homeless and hungry. In the first few years
of the Great Depression, people could not get the help they
needed from the government. They were frustrated, scared,
and angry. More than anything, they were ready for change.
4
Franklin Delano Roosevelt (also known President Hoover
as FDR) was elected president in 1932. Before FDR, Herbert Hoover was
He promised to help people. He said he president. Hoover had served as the
had a plan to fix the economy. This plan head of the Food Administration
was called the New Deal, and it addressed during World War I. His job was to
the problems of the Great Depression. It keep people fed. He gave food to
also put programs in place that would help people at home, as well as to millions
of starving Europeans. Hoover
people find work while helping the country
became president in 1928. In a
as a whole. This plan changed the way speech, he said the United States
people felt about their country and their was closer to ending poverty “than
government. Life in the United States would ever before in the history of any
never be the same. land.” One year later, the Great
Depression began.
Recycling at
Its Roots
During the Great Depression,
people learned to be
resourceful. If they couldn’t
afford coal, then they
burned corn to heat their
homes. They sewed their
own clothing and saved
items to be reused in
other ways.
5
From Boom to Bust
Before the Great Depression, the U.S. economy was
The Stock Market doing well. The United States was becoming a society
The stock market is a list of consumers. Then, Americans saw their world
of companies that are come crashing down.
selling stocks, or parts
6
Americans looked toward the future. When people invested in the
stock market, they expected the good times to go on and on. They
thought the companies they invested in would keep growing and
making money.
7
The Crash
The good times eventually came to an end. Economic
growth slowed, unemployment rates rose, and stock prices
dropped. People began to panic. They could only make
money if they sold their stocks at higher prices than what
they had paid for them. If stock prices fell, they would
lose money.
On Thursday, October 24, 1929, panic turned into action
as large numbers of people started selling their stocks as
fast as they could. Everyone hoped to sell before prices
dropped even more. However, as the panic continued into
the following week, the mass selling made the problem worse.
No one wanted to buy, and with no demand, prices fell even
more rapidly.
8
On Tuesday, October 29, the stock Unhappy Holidays
market crashed. This day was later called Les Orear was in college when the stock
Black Tuesday. People had spent a lot of market crashed. He had to move back
their money buying stocks. Those same to Chicago to help support his family.
stocks were now worthless. Many people Orear found a job that paid 37.5 cents
owed money. They had bought stocks on a day. He has no memories of
credit to begin with. They had to pay back Thanksgiving or Christmas during this
time. He said these two days weren’t
the borrowed money.
celebrated as holidays—they were
People with money in the stock market just days without pay.
were not the only ones affected by the crash.
Companies with stocks lost everything too.
Jobs across the country were now at risk. Misguided Guidance
Owners had to dismiss employees or close President Hoover urged Americans
their businesses. not to panic. He wanted them to
rely on what he called “rugged
individualism.” He thought the
crisis would soon pass. He said
Americans could get through
the hard times without the
government’s help.
10
1929 bank run
11
Hungry and Homeless
As the Great Depression continued, the American way of
life completely changed. People took whatever work they
could find. In New York City, close to six thousand people
sold apples for five cents each. Some of those workers
included former millionaires.
Unemployment and low wages meant people could not
afford basic goods. Packed tenements grew even more
crowded as families moved in together. People could not
afford much food to eat or coal for heat. Some people found
relief in cities. The government did not offer much help. But
soup kitchens and breadlines gave out free food.
12
Hating Hoover
Charles Michelson was a leader in the
Democratic Party. He was the first
person to use the term Hoovervilles to
When people could not afford their describe shantytowns. People blamed
rent and house payments, they were President Hoover for failing to help
forced to live on the streets. Many them. So, Hoover’s name was used
people became homeless. They lived in in insulting ways. People named
shantytowns, which were crude towns the newspapers they slept under
packed with homemade dwellings. Some “Hoover blankets.” The cardboard
they used to replace shoe soles was
houses were made out of cardboard or tin.
called “Hoover leather.”
Others were tents or even holes dug into
the dirt.
Soup Kitchens
The idea of soup kitchens
came from Irish immigrants.
During the Great Hunger in
Ireland, people served free
meals to those who were
hungry. During the Great
Depression, Americans did
the same. An unexpected
owner ran one of the best
soup kitchens at this time.
Famed criminal Al Capone
fed thousands of people
from his soup kitchen
(shown above) every day.
13
Dust Bowl
People struggled to find jobs in cities during the
Great Depression. However, life was not any better
for people living in rural areas. In particular, people
Dust Bowl Size in the Great Plains region struggled. Their problems
The Dust Bowl spanned had begun years earlier, during World War I. During
parts of Oklahoma, Texas,
the war, demand for wheat was high, and farmers
Kansas, Colorado, and
New Mexico. In total, it
could make money. They destroyed their fields as
was 300,000 square miles they grew more and more wheat.
(777,000 square kilometers).
That is larger than all of
Germany. Dirt from the
Dust Bowl traveled as far as a dust storm in Kansas
Illinois. It also darkened skies
all along the East Coast of the
United States.
14
Then, in 1931, it didn’t rain much, and there were lots of high
winds in the Great Plains. The high winds blew the dry topsoil,
which resulted in thick dust storms. Because of these storms, this
area became known as the Dust Bowl. The dust storms were so
dense that they were often called “black blizzards.” During bad dust
storms, there was zero visibility. People got infections and died
from inhaling too much dust.
Crop failures also led to food shortages for livestock. This
combination forced many farmers into poverty. Families pulled
together and helped their neighbors when they could. They created
community programs to lift their spirits. Still, survival was difficult.
Many farmers lost their land to banks. When they could not make
the payments they owed, banks took the land back.
Hundreds of thousands of people left the Great Plains during the
Great Depression. Some people snuck on trains. Other people filled
their cars with everything they could fit and drove away. They were
searching for work and better lives. No matter where they went, they
struggled to find either.
15
The New Deal
Many people blamed President Hoover for their problems
during the Great Depression. A new president brought fresh
ideas to rescue the country.
1933
• Mar. 4: FDR is sworn in as president and begins his New Deal plan.
• Mar. 6: FDR closes all banks as part of his “bank holiday” plan.
• Mar. 9–June 16: FDR’s “Hundred Days” programs begin, with 13 major laws
passed in 14 weeks.
1934
• May 10: One of the worst dust storms
1935 of the Dust Bowl period hits,
convincing people to move out of
• May 27: The Supreme Court rules that the Dust Bowl region.
one of FDR’s acts is unconstitutional. • Nov. 6: Democratic Party wins Senate
• Aug. 14: FDR signs the Social Security seats in the midterm elections,
Act, which still exists. which serves as a show of support
• Aug. 31: FDR states that the United for FDR’s policies.
States will not involve itself in
international wars.
16
FDR took swift action. His plan for the
country became known as the New Deal,
and it was based on “the three Rs.” Relief
would stop the economy from getting
worse. Recovery would start to turn things Portraits with Purpose
around. Reform would focus on changing Dorothea Lange took photos of
laws to stop this from happening again. American farmers during the Great
Saving the banking industry was FDR’s Depression. She took notes on
what they said and what she saw.
first priority. He closed American banks for A government agency used her
four days, which gave Congress time to pass pictures. They wanted Americans
the Emergency Banking Act. Under the new to see the harsh conditions people
law, banks could not reopen until they passed in rural places were facing.
an inspection. They had to prove they would Lange’s photos are still some of
not fail. the most famous images from
this time.
1936
• Jan. 6: The Supreme Court rules another of FDR’s
acts is unconstitutional.
• Jan. 24: Against FDR’s requests, Congress “Brother, Can You
approves the payment of bonuses to veterans.
• Nov. 3: FDR wins a second term as president.
Spare a Dime?”
In 1932, musician E. Y.
Harburg released a new
song called “Brother, Can
1937 You Spare a Dime?” The
• Feb. 2: FDR introduces a bill to reorganize the judiciary song spoke to many
system, but loses many of his long-term supporters. Americans during the Great
• May: FDR cuts government spending, leading to a rise in Depression. The lyrics told
unemployment rates for the first time since he took office.
the story of a man who
had worked hard for his
country but still wound up
in poverty and standing
1938 in breadlines.
• Jan. 3: FDR recommends building up the armed services.
• June: Unemployment rates go down.
• Sep. 27: FDR asks for a peaceful end to Germany’s aggression.
17
Government Relief
FDR formed new government agencies as part of his
New Deal. Americans knew many of these agencies
by the first letters in their names. They were called
the alphabet agencies.
One of the most popular agencies
was the Civilian Conservation
Carver’s Cure Corps (CCC). It was formed in
As the CCC restored April 1933. The goal of the CCC
damaged soil, George was to fight unemployment and
Washington Carver (shown repair soil for farmers. The
above) was working to CCC offered jobs to young
solve for the future. Carver men. They worked on projects
was a scientist and a genius
in the Great Plains and on
with plants. He encouraged
farmers to plant vegetables federal land, including national
and legumes in their new forests and parks. They lived in camps
fields. These crops add and worked for six months at a time.
nitrogen to soil, which keeps
soil healthy. Carver also
Many alphabet agencies, such as the CCC, were
introduced crop rotation to temporary. They were meant to provide relief
the South. With this process, during a time of crisis. Other agencies were
farmers plant different crops in permanent. Congress formed
fields in back‑to‑back years. It the Federal Deposit Insurance
allows the soil time to recover. Corporation (FDIC) two months
Crop rotation is still used. after the CCC. The FDIC backed
people’s money when it was held in
banks. The FDIC is still around. It
CCC Accomplishments guarantees that people will not lose all
The CCC ended in 1942. Over their money if banks fail.
three million people worked for
the agency. The workers repaired
millions of acres of soil. They also
planted more than two billion trees.
18
A tourist at the Nez Perce National
Forest drives on a road that was
built by the CCC.
19
Saving the Country
The New Deal continued to improve the country
throughout FDR’s first term. He founded more agencies.
A lot of them gave jobs to people who were out of work.
The Civil Works Administration (CWA) gave jobs to
laborers. They improved bridges, hospitals, schools, parks,
playgrounds, and airports. Students and young people found
jobs with the National Youth Administration (NYA). Parts
of the Works Progress Administration (WPA) offered jobs
to artists. The WPA employed 8.5 million people. Some of
them wrote, drew, or painted what they saw. Other people
took photographs or wrote music.
FDR’s new agencies did more than create jobs. They helped
stop future disasters too. The Tennessee Valley Authority
(TVA) controlled f loods and added electrical power to the
Tennessee River area. The Securities
and Exchange Commission (SEC)
kept watch over the stock market. It
worked to prevent another crash.
By 1935, things were looking
better. FDR ran for re-election. The
country was starting to come out of
the Great Depression. Many people
gave credit to FDR. So, FDR won a
second term.
Art Appreciation
The WPA built roads, bridges, parks,
and airports. It also supported
artists and writers. Some people felt
using money to support art was a
waste. But the director of the WPA
thought artists deserved to be paid
for their work too. The WPA backed
the making of 2,566 murals and
17,744 sculptures.
You’re Hired!
Some famous structures were
built during the depression.
The Empire State Building
was finished in 1931 and
provided over three thousand
jobs each day. Two years
later, construction began
on the Golden Gate Bridge.
Hundreds of men came from
around the country to work
on the huge structure. The
pay ranged from $4 to $11
per day, which was a lot of
money at the time!
21
A Changing Culture
Owen’s Attempts As the 1930s stretched
on, the economy slowly
Despite Hitler’s racist
views, many German improved. At the same
people loved Owens. time, the culture of the
During the long‑jump United States was changing.
competition, Owens did Music, novels, and sports
a practice run. When were inspiring Americans.
he learned his practice
run counted as one of his One of the most famous
attempts, he was flustered. musicians of this time
That embarrassment caused was Duke Ellington.
Owens to mess up his second Ellington wrote swing
attempt. With only one music and led a band in live performances. Swing
chance left to make it to is a type of jazz that is upbeat. When people heard
the finals, a German athlete
swing music, they became hopeful for a better
named Carl Long approached
Owens. Long gave Owens
future. When Ellington performed, large crowds
advice and calmed him down. gathered to lift their spirits.
Long’s suggestions helped
Owens make it to the finals
on his third attempt. In the
finals, Owens beat Long for the
gold medal.
Scarlett’s Success
Gone With the Wind won the
Pulitzer Prize. That is an award
for the best writing each year. It
became one of the most widely
read books of the twentieth
century. It has sold 30 million
copies and has been translated into
more than 40 languages. Mitchell holding her novel
22
While some people wanted to feel better, other people wanted to
have their pain understood. Margaret Mitchell did just that. In 1936,
Mitchell released Gone With the Wind. The novel follows Scarlett
O’Hara. Though her life is hard, O’Hara refuses to give up. Readers
related to O’Hara. They saw themselves in her. If she didn’t give up,
neither would they.
In the same year readers
were falling in love with Gone
With the Wind, sports
fans had their own
hero. Jesse Owens was
a track‑and‑field star.
He competed in the
1936 Olympic Games®
in Berlin. Germany’s
leader—Adolf Hitler—
discriminated against people of
different races. Owens—a black
athlete—won four gold medals,
sending a powerful message to
Hitler. Owens also set a world
record that stood for 25 years.
The country was recovering.
It was also changing.
Owens at the
1936 Olympic Games
23
New Decade, New Concerns
The economy continued to recover. FDR felt it was time to
pull back spending on government programs. However, it was
too soon. Companies failed and people lost their jobs again.
A recession took over the country in 1937. This period was
nicknamed “Roosevelt’s Recession.” FDR quickly returned to
government spending. Once again, the economy steadied.
By the end of 1938, the New Deal was losing support. It had
solved many problems, but the country was faced with new issues.
British and French leaders had declared war on Germany. The
Soviet Union, Japan, and many other countries were also involved.
In 1939, the New Deal ended as the nation’s leaders shifted their
focus. Two years later, the United States entered World War II.
24
It was a scary time for Americans, There’s a Limit
but the war helped the U.S. economy. FDR did not think that the country should
Unemployed people could now find jobs. switch presidents at the start of a major
More than 16 million men and women war. He announced that he was running
joined the military. Even more people for president again. FDR was elected to
found jobs helping the war effort from a third term in 1940. He was re-elected
home. They made weapons and other for a fourth term in 1944. In 1947,
Congress passed the Twenty‑Second
goods needed for the war.
Amendment. It limits U.S. presidents
Many Americans still struggled. to two terms.
However, their outlook grew more positive.
People wanted to help win the war and work
for world peace. With the U.S. entry into
World War II, the Great Depression officially
came to an end.
26
The New Deal’s Home Owners’
Loan Corporation agency kept
over a million people from
becoming homeless.
27
Write It!
Imagine you are living during the Great Depression.
How has your life changed since the 1920s? Has anyone
in your family left home to look for work? How do you
try to help out with chores and earning money? What do
you do for fun? Consider whether you live in the city or
country. You can look back through the book for details
about urban and rural experiences.
Write some ideas about your imaginary life. Then,
write a letter to a friend about your everyday struggles
during the Great Depression.
28
29
Glossary
approval rating—a percentage poverty—the state of being
of people who think someone is without money or possessions
doing a good job
profits—money that is made after
bankrupt—unable to pay debts all expenses have been taken out
consumers—people who buy and races—groups of people with
use goods common ancestries
credit—money given to purchase recession—a period of time in
goods that a person later repays which there is a decrease in
economic activity and many
demand—a desire and ability people do not have jobs
to buy goods or services at a
certain time and price tenements—apartment buildings
that house especially poorer
immigrants—people who come families in cities
to countries to live there
topsoil—surface soil that a
industrialized—describes a farmer turns over when plowing
society with highly developed
industries unconstitutional—not agreeing
with or according to the
interest—a charge for borrowed constitution of a society or
money country
invested—used money to buy unemployment rates—the total
stock, property, or other things number of people in places who
in order to make more money are looking for jobs but have not
laborers—people who do been hired yet
physical work for pay veterans—former members of
livestock—farm animals that are the armed forces
kept for profit and use zero visibility—the state of being
mass culture—a set of similar unable to see anything due to
values and ideas that form out of poor weather, darkness, fog, or
a common exposure to the same smoke
music, media, news, and art
30
Index
alphabet agencies, 18–21 Long, Carl, 22
bank run, 10–11 Michelson, Charles, 13
Black Tuesday, 9 Mitchell, Margaret, 22–23
Bonus Army, 14 National Youth Administration
(NYA), 20
Carver, George Washington, 18
Orear, Les, 9
Civilian Conservation Corps
(CCC), 18–19, 26 Owens, Jesse, 22–23
Civil Works Administration Pulitzer Prize, 22
(CWA), 20
Roaring Twenties, 6
Dust Bowl, 14–16
Roosevelt, Franklin Delano
Ellington, Duke, 22 (FDR), 5, 16–18, 20, 24–26
Emergency Banking Act, 17 Securities and Exchange
Commission (SEC), 20
Federal Deposit Insurance
Corporation (FDIC), 18 shantytowns, 13
Gone With the Wind, 22–23 stock market, 6–7, 9–10, 20
Great Plains, 14–15, 18 Tariff Act, 10
Harburg, E. Y., 17 Tennessee Valley Authority
(TVA), 20
Hitler, Adolf, 22–23
Twenty-Second Amendment, 25
Hoover, Herbert, 5, 9–10,
13– 14, 16 Works Progress Administration
(WPA), 20–21, 26
Hoovervilles, 13
World War I, 5–6, 14
Lange, Dorothea, 17
World War II, 24–25
31
Your Turn!
This photograph is known
as “Migrant Mother.” The
photographer was Dorothea
Lange. Lange was hired by
the government as part of the
Farm Security Administration
Program. Lange’s job was to
bring awareness to farmers
who were suffering and
convince people that they
needed help. Lange took
this photograph in 1936 in
Nipomo, California. The
mother pictured is Florence
Owens Thompson. Thompson is believed to have left the
Dust Bowl with her seven children so she could find work
in California. This photograph was published in many
magazines and newspapers of the time. Thompson became a
symbol for the harsh realities that farm workers were facing
during the Great Depression.
Imagine you are the editor of a newspaper or magazine.
You have just been sent Lange’s photograph. You know that
Thompson and many other people are suffering. Design the
layout of your newspaper or magazine. Include an article
about the “Migrant Mother” photograph.
32
Reader’s Guide
1. How did events in 1929 cause the Great Depression?
4. How did the stock market crash affect people who didn’t
own stocks?
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