The Beginning• The economic contraction that began with the Great Crash triggered the most severe economic downturn in the nation’s history—the Great Depression• The Great Depression lasted from 1929 until the United States entered World War II in 1941• The stock market crash of 1929 did not cause the Great Depression. Rather, both the Great Crash and the Depression were the result of deep underlying problems with the country’s economy X
Hoover’s Response• To protect domestic industries, Congress passed the Hawley-Smoot tariff, the highest import tax in history. European countries also raised their tariffs, and international trade suffered a slowdown• Hoover set up the Reconstruction Finance Corporation (RFC), which gave government credit to banks, industries, railroads, and insurance companies. The theory was that prosperity at the top would help the economy as a whole. Americans saw it as helping bankers and businessmen, while ordinary people went hungry• Hoover did not support federal public assistance because he believed it would destroy people’s self-respect and create a large bureaucracy• Finally, public opinion soured for Hoover when he called the United States Army to disband a protest of 20,000 unemployed World War I veterans called the Bonus Army X
Hoover’s Limited Strategy PORTRAYAL OF AMERICAN LIFE BY LOST GENERATION WRITERSEffort Description Effectivenesspublic-works poured money into public failed to affect theprograms construction projects entrenched depression such as the Boulder Damagricultural created the Federal helped some farmersefforts Farm Board; made take advantage of loans, established cooperatives and avoid cooperatives, and closure, but failed to bought surplus goods end the farm crisisReconstruction loaned taxpayer money helped someFinance to stabilize industries companies avoidCorporation bankruptcy, used(RFC) money for businesses; not people X
A ―New Deal‖ for America• FDR promised a New Deal for the American people.• He was ready to experiment with government roles in an effort to end the Depression.• As governor of New York, Roosevelt had set up an unemployment commission and a relief agency.• FDR’s wife, Eleanor, was an experienced social reformer. She worked for public housing legislation, state government reform, birth control, and better conditions for working women.• When the Roosevelts campaigned for the presidency, they brought their ideas for political action with them. X
The Election of 1932Franklin Roosevelt Herbert Hoover• Believed that government • Believed that federal had a responsibility to help government should not try to people fix people’s problems• Called for a reappraisal of • Argued that federal aid and values and more controls on government policies to help the poor would alter the big business foundation of our national life• Helped many Americans • He argued for voluntary aid to reassess the importance of help the poor and argued ―making it on their own‖ against giving the national without any help government more power• Much of his support came • Hoover gave very few from urban workers, coal campaign speeches and was miners, and immigrants in jeered by crowds need of relief• Roosevelt won 57 percent of the popular vote and almost 89 percent of the electoral vote X
Restoring Hope & the First Hundred Days boosted family incomes so that helped modernize the South children could stay in schoolbroke down class barriers New Deal Programs provided jobs, brought electricity improved people’s to rural areas sense of self worth X
Areas of New Deal ReformStabilizing FDR wanted to restore public confidence in the nation’s banks.Financial Congress passed the Emergency Banking Act, which authorized theInstitu- government to inspect the financial health of all banks.tions Congress also passed the Glass-Steagall Banking Act of 1933. This act established a Federal Deposit Insurance Corporation (FDIC) to insure bank deposits.Providing FDR persuaded Congress to establish the Federal Emergency ReliefRelief Administration (FERA). FERA put money into public works programs,and government-funded projects to build public facilities and create jobs.Creating One public works program was the Civilian Conservation CorpsJobs (CCC). The CCC put more then 2.5 million men to work maintaining forests, beaches, and parks. X
Areas of New Deal ReformRegulating In 1933, Congress passed the National Industrial Recovery Act (NIRA). NIRAthe established the National Recovery Administration (NRA), which tried to balanceEconomy the unstable economy through extensive planning. The NRA established codes for fair business practices. These codes regulated wages, working conditions, production, and prices, and set a minimum wage.Assisting The Federal Housing Administration (FHA) worked to improve housingHome- standards and conditions, and insure mortgages.owners and The Agricultural Adjustment Administration (AAA) raised farm prices throughFarmers subsidies. They paid farmers not to raise certain crops and livestock, hoping that lower production would cause prices to rise. The Tennessee Valley Authority (TVA) provided jobs, hydroelectric power, flood control, and recreational opportunities to farmers in the underdeveloped Tennessee Valley. X
Work Programs• The Civilian Conservation Corps – CCC = relieve unemployment & poverty – 250,000 young men, 17-24 yrs = Nat’l parks, etc. – $30/month + food, shelter, clothing & education• Modest Gains for Labor – NIRA: monitoring BIG business – 1938: Fair Labor Stand. Act = ended child labor, established min. wage, overtime pay• Praise for the New Deal – Roosevelts received thousands of fan mail with requests for soap, money, and clothing X
Key Players in the New Deal• FDR was the first President to appoint a woman to a Cabinet post. Frances Perkins, a former Progressive, was the Secretary of Labor until 1945• FDR also broke new ground by hiring African Americans in more than a hundred policymaking posts• Eleanor Roosevelt was one of FDR’s most important colleagues. Occasionally the First Lady took stands that embarrassed her husband. For example, she protested the Jim Crow laws at a meeting of the Southern Conference for Human Welfare in Birmingham, Alabama. X
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