3 Herbert Hoover Grew up in a poor family in a small Iowa town Trained as a mining engineerRan U.S. Food Administration during WWIPromoted government-business partnershipsElected President as a Republican in 1928
4 “Voluntarism” (or “Volunteerism”) People are responsible for helping themselvesNo direct federal government aid for the poorCommunities should work together to help the poorKeep the budget balanced – no deficit spendingProsperity “trickles down” from businesses to everyone else
5 Hoover’s Policies – The Early Years Asked business not to cut jobs or wagesReduced taxes to boost consumer demandUrged the wealthy to give to charityAsked state government to increase aid for the poorConstant optimism – tried to restore confidence in the economy
6 Problem: this didn’t work Unemployment and homelessness continued to riseLocal governments and charities ran out of moneyHoover became increasingly unpopularHoovervilles = shanty townsHoover Houses = cardboard boxesHoover Heaters = campfires
7 Hoover’s Policies – The Later Years Reconstruction Finance CorporationCreated 1932Provided loans to banks, railroads, big businessesExemplified trickle-down economicsHoover DamMassive public works project on the Colorado RiverCreated jobs in a depressed area
8 The Bonus ArmyAfter WWI, Congress promised cash payments to veterans in 1945The Depression left many veterans unemployedSummer 1932: “Bonus Army” of 15,000 veterans marched to Washington, D.C., demanding immediate payment
9 The Bonus Army, continued Bonus Army camps out in WashingtonJuly 1932: Hoover orders evacuation of Bonus ArmyJuly 28:U.S. Army forcibly evicts Bonus ArmyNegative publicity destroyed Hoover’s re-election campaign
10 The 1932 Election Why would Hoover be unpopular? Economy still hasn’t recoveredPeople think Hoover hasn’t done enoughBonus Army is terrible publicityWhat do you think people are looking for?More decisive, drastic actionSomeone who understands them
12 Franklin Delano Roosevelt Born into a wealthy, well- connected New York familyDisabled by polio in his fortiesElected president as a Democrat in 1932Promised a “New Deal” to solve the Depression
13 How does this differ from Hoover’s philosophy? The country needs, and unless I mistake its temper, the country demands bold, persistent experimentation. It is common sense to take a method and try it. If it fails, admit it frankly and try another. But above all, try something.-FDR, 1932How does this differ from Hoover’s philosophy?
14 Result: The New Deal Date: 1933-1938 Definition: series of ambitious federal programs with the goal of ending the DepressionSignificanceHelped end the Depression and reduce unemploymentRadically expanded the government’s role in economic life
15 Principles of the New Deal Relief – help the needyRecovery – end the DepressionReform – change the economy so that the Depression can’t happen again
16 Fireside ChatsDate:Series of radio addresses by FDR on national issues and proposed lawsSignificanceHelped build support for New Deal programsEncouraged Americans to feel closer to the President
17 Fireside ChatsHow does FDR use the radio to gain the trust of his listeners?
18 New Deal Policies Federal Deposit Insurance Corporation (FDIC) Tennessee Valley Authority (TVA)Civilian Conservation Corps (CCC)Federal Housing Administration (FHA)National Recovery Administration (NRA)Public Works Administration (PWA)Works Progress Administration (WPA)Social Security Administration (SSA)