Hoover and the Great Hoover and the Great DepressionDepression
AP OutlineAP Outline
Depression, 1929-1933Depression, 1929-1933 Wall Street crash Wall Street crash Depression economy Depression economy Moods of despair Moods of despair
Agrarian unrest Agrarian unrest Bonus march Bonus march
Hoover-Stimson diplomacy; Japan Hoover-Stimson diplomacy; Japan
Hoover Key TermsHoover Key Terms
Great DepressionGreat Depression Stock Market CrashStock Market Crash Hoover's Response to The CrashHoover's Response to The Crash Chain Reaction-Unemployment-Chain Reaction-Unemployment-
Bank FailuresBank Failures Massive SufferingMassive Suffering
Causes of the DepressionCauses of the Depression
Uneven Distribution of incomeUneven Distribution of income Stock Market Speculation-Stock Market Speculation- Excessive Credit Excessive Credit
Buying Stock on MarginBuying Stock on Margin Over Produciton of Farm GoodsOver Produciton of Farm Goods
Great Great Depression Depression SufferingSuffering
Okies and Okies and “Hooverville”“Hooverville”
Hoover’s Response Hoover’s Response
Hoover’s Initial Reaction:Hoover’s Initial Reaction: Conservative RepublicanConservative Republican Thought the poor economy would improve…Thought the poor economy would improve… Just another temporary down turnJust another temporary down turn
Government’s Reaction Made the Depression worseGovernment’s Reaction Made the Depression worse Idea- Government cuts (spending) expenditures to balance Idea- Government cuts (spending) expenditures to balance
the budgetthe budget Raised taxesRaised taxes Cut spendingCut spending Significance-problematicSignificance-problematic action it took $ out of the action it took $ out of the
economyeconomy
Hoover ResponsesHoover Responses No government interferenceNo government interference in the economy- in the economy- ““The The DoleDole corrupts society” no governments help corrupts society” no governments help
in relief of unemploymentin relief of unemployment Volunteerism-Volunteerism- private charities should help the private charities should help the
neededneeded People should give to charityPeople should give to charity Called bankers to bolster financial marketCalled bankers to bolster financial market Called industrialist not to lower wagesCalled industrialist not to lower wages
““Bank Relief”Bank Relief” (RFC)(RFC) Reconstruction Finance Corporation Reconstruction Finance Corporation
Hoover did try to help and support banks and Hoover did try to help and support banks and corporations by offering loans that would spur the corporations by offering loans that would spur the economy.economy.
No government deficit spendingNo government deficit spending (he changes (he changes his mind in 1933 and begins deficit spending)his mind in 1933 and begins deficit spending)
The “Bonus The “Bonus March”March”
Veterans of World Veterans of World War IWar I
Demonstrate, Demonstrate, protest, camp out protest, camp out in Washington DCin Washington DC
Hoover orders Hoover orders Army to remove Army to remove protestorsprotestors
MacArthurMacArthur and and tanks are finally tanks are finally usedused
FDR and The “New Deal”FDR and The “New Deal”
New DealNew Deal
Franklin D. Roosevelt Franklin D. Roosevelt Background, ideas Background, ideas Philosophy of New Deal Philosophy of New Deal 100 Days; "alphabet agencies" 100 Days; "alphabet agencies" Second New Deal Second New Deal Critics, left and right Critics, left and right Rise of CIO; labor strikes Rise of CIO; labor strikes Supreme Court fight Supreme Court fight Recession of 1938 Recession of 1938 American people in the Depression American people in the Depression Social values, women, ethnic groups Social values, women, ethnic groups Indian Reorganization Act Indian Reorganization Act Mexican American deportation Mexican American deportation The racial issues The racial issues
Who is Franklin Delano Who is Franklin Delano Roosevelt?Roosevelt?
•Huge personality
•Energetic
•Self confident
•Charismatic
•Consummate politician
•New York, Wealthy Family
•Cousin to TR, Harvard Educated
•VP Candidate 1920
•1921 stricken with Polio- wheel chair
•Under Secretary of the Navy, Wilson
•Governor of New York 1928 thru 32
Democratic NominationDemocratic Nomination
Gains nomination by bringing diverse Gains nomination by bringing diverse groups together- groups together-
Steals the Nomination from SmithSteals the Nomination from Smith
# 1 factor in the election is # 1 factor in the election is ECONOMYECONOMY
Election of 1932Election of 1932
FDR believed in FDR believed in Progressive idealsProgressive ideals
The Government The Government servesserves the people the people
Truly sympathetic Truly sympathetic to the to the disadvantageddisadvantaged
Government needs Government needs to reform businessto reform business
PlatformPlatformLow TariffLow TariffUnemployment Unemployment InsuranceInsuranceOld Age InsuranceOld Age Insurance
FDR pledged a new deal for FDR pledged a new deal for AmericaAmerica
"I pledge you, I pledge myself, to a "I pledge you, I pledge myself, to a new deal for the American people."new deal for the American people." FDR Democratic National Convention FDR Democratic National Convention 19321932
““The Country demands bold persistent The Country demands bold persistent experimentation.” FDRexperimentation.” FDR
But never said what it would be or how But never said what it would be or how it would work…it would work…
Election of FDRElection of FDR
Election Map of 1932Election Map of 1932
FDR and Democrats winFDR and Democrats win
Immediately Roosevelt calls together Immediately Roosevelt calls together experts November –January experts November –January
The The “Brain Trust”-“Brain Trust”- political, business political, business and Intellectuals/Academicsand Intellectuals/Academics
Key IdeaKey Idea
The The New Deal represents the greatest New Deal represents the greatest expansion of Federal power in the history of the expansion of Federal power in the history of the countrycountry..
The Federal Government will now take on the The Federal Government will now take on the role of supporting Americans through role of supporting Americans through regulationregulation of economy= banking, labor supports, of economy= banking, labor supports, Securities and Exchange Commission, and Securities and Exchange Commission, and Social InsuranceSocial Insurance= Social Security, = Social Security, Unemployment, Aid to Families with Dependent Unemployment, Aid to Families with Dependent Children, Children,
What is the New Deal?What is the New Deal?
The “Brain Trust” created a series of The “Brain Trust” created a series of programs created by the Federal programs created by the Federal Government that provided for changes Government that provided for changes to:to:
Aid economicAid economic development (Recovery) development (Recovery) Help citizensHelp citizens (Relief) (Relief) PreventPrevent another depression from another depression from
occurring again. (Reform)occurring again. (Reform)
Three “R”sThree “R”s
ReliefRelief for the people out of work for the people out of work RecoveryRecovery for business and economy for business and economy ReformReform of American economic of American economic
institutions institutions
First 100 DaysFirst 100 Days Inaugural speech March Inaugural speech March
4, 19334, 1933 ““The only thing we have The only thing we have
to fear is fear itself.”to fear is fear itself.” Offered the American Offered the American
public hope!public hope! Emergency Session of Emergency Session of
Congress to approve and Congress to approve and enact new laws to aid the enact new laws to aid the economy.economy.
First item:First item:Bank Bank Holiday-Holiday- Emergency Emergency Banking Banking ActAct
John Maynard John Maynard KeynesKeynes
Keynesian EconomicsKeynesian Economics Father of deficit spending Father of deficit spending Advocated the use of Government Advocated the use of Government
spending to mitigate the problems of spending to mitigate the problems of Capitalism in an effort to spur and Capitalism in an effort to spur and stabilize the economystabilize the economy
See reading See reading
Mass Media: RADIOMass Media: RADIO
““Fireside Chats”Fireside Chats” 60 million people60 million people Offer confidence and hopeOffer confidence and hope People begin to trust and look to him People begin to trust and look to him
for helpfor help
New Deal Legislation (100 New Deal Legislation (100 Days)Days)
Repeal Prohibition: Repeal Prohibition: 2121stst AmendmentAmendment
Revenue Act- Tax Revenue Act- Tax AlcoholAlcohol
Agricultural Agricultural Adjustment Act Adjustment Act (AAA)(AAA)
(NRA)(NRA) National National Recovery Recovery AdministrationAdministration
(NIRA)(NIRA) National National Industrial Recovery ActIndustrial Recovery Act
(PWA)(PWA) Public Works Public Works AdministrationAdministration
(TVA)(TVA) Tennessee Tennessee Valley AuthorityValley Authority
(FDIC)(FDIC) Federal Deposit Federal Deposit Insurance CorporationInsurance Corporation
(CCC)(CCC) Civilian Civilian Conservation CorpsConservation Corps
(FERA)(FERA) Federal Federal Emergency Relief Emergency Relief Administration Administration Harry Harry Hopkins-Hopkins- leader leader
Other New Deal programsOther New Deal programs
(SEC) Security and Exchange (SEC) Security and Exchange CommissionCommission
(FCC) Federal Communications (FCC) Federal Communications CommissionCommission
Critics of FDRCritics of FDRRightRight
American Liberty League-big business American Liberty League-big business Raskob Chairman of GMRaskob Chairman of GM
LeftLeftFather Father CoughlinCoughlin
Dr. TownsendDr. Townsend
Social Social SecuritySecurity
Huey P. LongHuey P. Long
““Share the Share the Wealth”Wealth”
22ndnd New Deal New Deal
Goals to create more jobs Goals to create more jobs Security against old age-Security against old age-
unemployment, and illnessunemployment, and illness Improve slums and housingImprove slums and housing Social Security-(1935)Social Security-(1935) Unemployment InsuranceUnemployment Insurance Wagner Act- National Labor Relations Wagner Act- National Labor Relations
ActAct
Labor Labor Rises under the New Rises under the New DealDeal
After 1933 Union Membership expands- After 1933 Union Membership expands- normally this is not the casenormally this is not the case
The New Deal allowed for labor The New Deal allowed for labor protections:protections: First under the National Recovery First under the National Recovery
Administration- (NRA) Administration- (NRA) Set wages and prices in effort to create jobsSet wages and prices in effort to create jobs NRA is found unconstitutional by Supreme NRA is found unconstitutional by Supreme
Court- Court- Schechter Poultry vs United StatesSchechter Poultry vs United States
FDR Was Pro-UnionFDR Was Pro-UnionWagner ActWagner Act
The The National Labor Relations ActNational Labor Relations Act gave workers the right to gave workers the right to negotiate through unions of their negotiate through unions of their choice. choice.
It also prevented employers from It also prevented employers from interfering with union activitiesinterfering with union activities
John L. Lewis John L. Lewis and the CIOand the CIO
Charismatic LeaderCharismatic Leader President of the United Mine Workers President of the United Mine Workers Began as VP of American Federation Began as VP of American Federation
of Laborof Labor Wanted to include mass production Wanted to include mass production
workers in AFL workers in AFL (UNSKILLED WORKERS)(UNSKILLED WORKERS) When AFL resists- he forms When AFL resists- he forms CIOCIO Congress of Industrial OrganizationsCongress of Industrial Organizations
CIO vs. General MotorsCIO vs. General Motors
GM employed 240,000 workersGM employed 240,000 workers Detroit/Flint Michigan areaDetroit/Flint Michigan area The first use of The first use of “Sit Down Strike“Sit Down Strike” is seen” is seen Workers go to work, peaceful Workers go to work, peaceful
demonstration, refuse to work.demonstration, refuse to work.
Government sides with laborGovernment sides with labor and no and no national guard and strike violencenational guard and strike violence
GM Gives InGM Gives In
GM gave in to strikers demandsGM gave in to strikers demands United Auto Workers is recognizedUnited Auto Workers is recognized Auto Workers and Steel Workers join the Auto Workers and Steel Workers join the
CIO-CIO- 1937- 200,000 Auto Workers1937- 200,000 Auto Workers 300,000 steel workers300,000 steel workers Membership grows 4 millionMembership grows 4 million Represents- pro-union stance of New DealRepresents- pro-union stance of New Deal However- some violence still exist in labor However- some violence still exist in labor
disputes- Chrysler, Ford, and Republic steeldisputes- Chrysler, Ford, and Republic steel
How does FDR end up with a How does FDR end up with a “friendly” Supreme Court?“friendly” Supreme Court?
FDR and the CourtFDR and the Court
Second Term- 1937Second Term- 1937 Economy growing but New Deal still Economy growing but New Deal still
neededneeded Supreme Court was limiting the Supreme Court was limiting the
effectiveness of programseffectiveness of programs They reflected They reflected conservative-conservative- Right Right
Wing views= pro-business, reduce Wing views= pro-business, reduce government interferencegovernment interference
The Court in 1937The Court in 1937
Older GenerationOlder Generation Had different vision of societyHad different vision of society 9 Judges- 7 appointed by 9 Judges- 7 appointed by RepublicansRepublicans
80% of Judges in lower Fed courts80% of Judges in lower Fed courts
Roosevelt was Frustrated:Roosevelt was Frustrated:
FDR proposed to add up to six new judges FDR proposed to add up to six new judges to the Supreme Court and up to 44 judges to the Supreme Court and up to 44 judges to lower federal tribunals. His scheme was to lower federal tribunals. His scheme was advertised as court reform. advertised as court reform.
FDR tries to Circumvent the FDR tries to Circumvent the CourtCourt
FDR was afraid that the court would FDR was afraid that the court would continue to limit New Deal reforms- like AAA continue to limit New Deal reforms- like AAA and National Recovery Administration NRAand National Recovery Administration NRA
Proposal sent to Congress:Proposal sent to Congress: Face value- appoint more judges to make Face value- appoint more judges to make
courts more efficientcourts more efficient Truth: add more liberal judges to Truth: add more liberal judges to
manipulate the process- pro-New Deal manipulate the process- pro-New Deal judgesjudges
FDR is widely criticizedFDR is widely criticized
FDR’s Plan BackfiresFDR’s Plan Backfires
Public outcry and criticism reduces Public outcry and criticism reduces plan ton defeatplan ton defeat
Court becomes more moderateCourt becomes more moderate Social Security Act upheldSocial Security Act upheld National labor Relations Board vs. National labor Relations Board vs.
Jones and Laughlin Steel:Jones and Laughlin Steel: Wagner Act is upheld- (Pro Labor Wagner Act is upheld- (Pro Labor
Decision) Decision)
““A Shift in Time Saves Nine”A Shift in Time Saves Nine”
Rational for Majority Decision- NLRB v Rational for Majority Decision- NLRB v Jones and Laughlin SteelJones and Laughlin Steel
““Unions served to maintain labor peace Unions served to maintain labor peace and prevent the disruption of interstate and prevent the disruption of interstate commerce; it was thus Constitutional commerce; it was thus Constitutional for the Federal Government to promote for the Federal Government to promote Unionization through the mechanisms Unionization through the mechanisms created in the Wagner Act.”created in the Wagner Act.”
Liberal Judges AppointedLiberal Judges Appointed
Justices Hugo BlackJustices Hugo Black Justices Frank MurphyJustices Frank Murphy Justices Felix FrankfurterJustices Felix Frankfurter
Will have lasting impact on American Will have lasting impact on American Government Government
Recession 1938Recession 1938
New Deal is coming to an endNew Deal is coming to an end 1937- 2 new pieces of legislation 1937- 2 new pieces of legislation
enactedenacted 1938- 1938- Farm BillFarm Bill = similar AAA-compensating = similar AAA-compensating
farmers- controlling supply and pricingfarmers- controlling supply and pricing Fair Labor Standards Act-Fair Labor Standards Act-
Prohibition of child laborProhibition of child labor Minimum wage= .40 cents hourMinimum wage= .40 cents hour 40 hour work week40 hour work week
1933-1938 1933-1938
New DealNew Deal is working- people are is working- people are workingworking
Relief programsRelief programs are being successful are being successful But- the economy is still very badBut- the economy is still very bad
UnemploymentUnemployment Production downProduction down
1938 Economy drops again1938 Economy drops again Unemployment risesUnemployment rises Stock Market dropsStock Market drops
Recession and FDRRecession and FDR
FDR thought the Economy was on the FDR thought the Economy was on the riserise
Cuts Cuts WPA- PWAWPA- PWA –Federally –Federally sponsored jobssponsored jobs
Federal Reserve raises interest ratesFederal Reserve raises interest rates Causes tight credit- reduces the supply of Causes tight credit- reduces the supply of
creditcredit few few SS taxes cause money to come out of SS taxes cause money to come out of
economyeconomy
FDR Moderates the New Deal FDR Moderates the New Deal and people lose jobsand people lose jobs
FDR and Minority FDR and Minority GroupsGroups
FDR was sympathetic in general, to African FDR was sympathetic in general, to African AmericansAmericans
Refused to push for a strong Federal Refused to push for a strong Federal Lynching law-Lynching law-
He was afraid to alienate the Southern He was afraid to alienate the Southern DemocratsDemocrats
Eleanor was the greatest supporter of African Eleanor was the greatest supporter of African American issues and civil rightsAmerican issues and civil rights
Eleanor a Truly Compassionate Eleanor a Truly Compassionate Human BeingHuman Being
Eleanor RooseveltEleanor Roosevelt fought for African fought for African American civil rights and American civil rights and improvementimprovement
She pressured FDR to listen and try She pressured FDR to listen and try to improve conditions for African to improve conditions for African Americans in the USAmericans in the US
Supported anti-lynching laws, Supported anti-lynching laws, abolition of poll taxes, and abolition of poll taxes, and
New Deal Programs and New Deal Programs and DiscriminationDiscrimination
New Deal programs like:New Deal programs like: CCC-CCC- had segregated units and had segregated units and
campscamps NRA paid blacks lessNRA paid blacks less
New Deal helped African New Deal helped African AmericansAmericans
African-Americans, who for many years had African-Americans, who for many years had loyally voted with the Republican Party, loyally voted with the Republican Party, switched to the Democratic Party as a result switched to the Democratic Party as a result of the popular New Deal reforms. of the popular New Deal reforms.
Though discriminated against by nearly Though discriminated against by nearly every New Deal agency, especially in the every New Deal agency, especially in the South, they were almost never excluded South, they were almost never excluded from assistance altogether. from assistance altogether.
The New Deal provided African-Americans The New Deal provided African-Americans with immediate economic assistance that with immediate economic assistance that stood between them and complete stood between them and complete destitution.destitution.
The Black CabinetThe Black Cabinet Roosevelt was the first president in Roosevelt was the first president in
the modern period to even listen and the modern period to even listen and or acknowledge African American or acknowledge African American needsneeds
He was not overtly supportive He was not overtly supportive because of political considerations because of political considerations (Southern Democrats) but he did (Southern Democrats) but he did listen and allowed for some supportlisten and allowed for some support
Phillip Randolph-African Phillip Randolph-African American LeaderAmerican Leader
Leader of the train Leader of the train porter’s unionporter’s union
Becomes spokesman for Becomes spokesman for mainstream African mainstream African AmericansAmericans
Indian ReorganizationIndian Reorganization The Dawes Plan of 1887, forced The Dawes Plan of 1887, forced
Native Americans to reorganize their Native Americans to reorganize their living conditions-they had to divide living conditions-they had to divide land individually.land individually.
In the New Deal- the reorganization In the New Deal- the reorganization of Native land allowed for collective of Native land allowed for collective (group) ownership, and funding for (group) ownership, and funding for education, and cultural programs- education, and cultural programs-
Native Americans were not left out.Native Americans were not left out.
Mexican DeportationMexican Deportation
Many Mexican immigrants begin to arrive Many Mexican immigrants begin to arrive in the 1920sin the 1920s
When the Depression hits, more come, When the Depression hits, more come, but then a backlash against them occursbut then a backlash against them occurs
The competition over jobs causes The competition over jobs causes resentment and deportation of over resentment and deportation of over 500,000 people, mostly in the south-west500,000 people, mostly in the south-west
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