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The Depression Hoover and FDR. Herbert Hoover Elected in 1928 primarily because the Republicans were associated with prosperity Elected in 1928 primarily.

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Presentation on theme: "The Depression Hoover and FDR. Herbert Hoover Elected in 1928 primarily because the Republicans were associated with prosperity Elected in 1928 primarily."— Presentation transcript:

1 The Depression Hoover and FDR

2 Herbert Hoover Elected in 1928 primarily because the Republicans were associated with prosperity Elected in 1928 primarily because the Republicans were associated with prosperity Believer in individualism, free enterprise, and laissez-faire Believer in individualism, free enterprise, and laissez-faire

3 Conditions which helped produce or intensify the Depression Overproduction Overproduction Unequal distribution of wealth Unequal distribution of wealth Overexpansion of credit Overexpansion of credit The depressed condition of agriculture The depressed condition of agriculture Stock Market speculation: buying on margin Stock Market speculation: buying on margin Unwise government policies Unwise government policies High tariff, no curbs on Stock Market High tariff, no curbs on Stock Market

4 Hoover Policies Calls for voluntary cooperation Calls for voluntary cooperation Asks leading industrialists not to cut pay, production, or workers Asks leading industrialists not to cut pay, production, or workers Asks labor leaders to discourage demands for strikes and higher pay Asks labor leaders to discourage demands for strikes and higher pay Asks governors and mayors to spend more on public works to create jobs Asks governors and mayors to spend more on public works to create jobs But economy continues to tumble But economy continues to tumble

5 Hoover Optimistic: prosperity just around the corner Optimistic: prosperity just around the corner

6 Agricultural Marketing Act To help farmers help themselves, largely through producers cooperatives To help farmers help themselves, largely through producers cooperatives Established Federal Farm Board which had no real power to reduce production. Established Federal Farm Board which had no real power to reduce production.

7 Hawley-Smoot Tariff Increased prices on foreign-made goods Increased prices on foreign-made goods Intended to increase buying of American- made goods Intended to increase buying of American- made goods European countries responded with tariffs on American-made goods. European countries responded with tariffs on American-made goods. Not successful. Not successful.

8 FDR and the New Deal I pledge you, I pledge myself, to a new deal for the American people. I pledge you, I pledge myself, to a new deal for the American people. Election of 1932 ushered in an era of a different kind of a politician. Election of 1932 ushered in an era of a different kind of a politician. Master politician: intelligent, confident, charming Master politician: intelligent, confident, charming Master communicator: fireside chats Master communicator: fireside chats

9 Preparing to Lead The Cabinet: Frances Perkins was the first woman to hold a Cabinet post (Labor). The Cabinet: Frances Perkins was the first woman to hold a Cabinet post (Labor). The Brain Trust: Informal group of advisors consisting of intellectuals, lawyers, and economists The Brain Trust: Informal group of advisors consisting of intellectuals, lawyers, and economists Humanitarian wife Eleanor had a great deal of influence. Humanitarian wife Eleanor had a great deal of influence.

10 New Deal in Action RELIEF for those people who were suffering. RELIEF for those people who were suffering. RECOVERY for the economy so that it could grow again. RECOVERY for the economy so that it could grow again. REFORM measures in order to insure against future depressions. REFORM measures in order to insure against future depressions.

11 Stages of the New Deal : dealt with relief and recovery; most passed in the First Hundred Days : dealt with relief and recovery; most passed in the First Hundred Days : The Second New Deal: focused more on social reform : The Second New Deal: focused more on social reform 1936 election: high point of the N.D election: high point of the N.D : recession due in part to New Deal cutbacks in spending : recession due in part to New Deal cutbacks in spending 1938: N.D. ended to opposition in Congress and WWII 1938: N.D. ended to opposition in Congress and WWII

12 New Deal Strategies Use of commerce and elastic clauses of the Constitution to take direct government action. Use of commerce and elastic clauses of the Constitution to take direct government action. Fiscal action to stimulate economy and lower unemployment by lowering taxes and increasing government spending. Fiscal action to stimulate economy and lower unemployment by lowering taxes and increasing government spending. Government responsibility for the general welfare of citizens. Government responsibility for the general welfare of citizens. Increase regulatory role over banks, businesses, and the stock exchange. Increase regulatory role over banks, businesses, and the stock exchange. Deficit spending: Keynesian Economics Deficit spending: Keynesian Economics

13 Relief Legislation Emergency Banking Act (1933) Emergency Banking Act (1933) Federal Emergency Relief Act (FERA) (1933) Federal Emergency Relief Act (FERA) (1933) Public Works Administration (PWA) (1933) Public Works Administration (PWA) (1933) Civilian Conservation Corps (CCC) (1933) Civilian Conservation Corps (CCC) (1933) Works Progress Administration (WPA) (1935) Works Progress Administration (WPA) (1935)

14 Recovery Legislation National Industrial Recovery Act (NIRA) 1933 National Industrial Recovery Act (NIRA) 1933 Home Owners Loan Corporation (HOLC) 1933 Home Owners Loan Corporation (HOLC) 1933 Federal Housing Administration (FHA) 1934 Federal Housing Administration (FHA) 1934 First and Second Agricultural Adjustment Acts (AAA) (1933 and 1937) First and Second Agricultural Adjustment Acts (AAA) (1933 and 1937) Tennessee Valley Authority (TVA) (1933) Tennessee Valley Authority (TVA) (1933)

15 Reform Legislation Glass-Steagall Banking Act (1933): created the FDIC Glass-Steagall Banking Act (1933): created the FDIC Securities Exchange Act (1934) Securities Exchange Act (1934) Social Security Act (1935) Social Security Act (1935) National Labor Relations Act (1935): also known as the Wagner Act; collective bargaining National Labor Relations Act (1935): also known as the Wagner Act; collective bargaining Fair Labor Standards Act (1938) set a minimum wage Fair Labor Standards Act (1938) set a minimum wage

16 Reactions to the New Deal FDR built up a New Deal coalition FDR built up a New Deal coalition Solid Democratic South Solid Democratic South new immigrant workers new immigrant workers Big cities Big cities African-Americans African-Americans Organized labor Organized labor Elderly Elderly Business people Business people farmers farmers

17 Criticism to the New Deal Strongest opposition came primarily from Big Business Strongest opposition came primarily from Big Business American Liberty League: attacked FDR for using too much power; free enterprise was being attacked American Liberty League: attacked FDR for using too much power; free enterprise was being attacked Dr. Francis Townsend: provide government pensions for the elderly Dr. Francis Townsend: provide government pensions for the elderly Father Charles E. Coughlin: blamed business owners, especially Jewish ones, for the economic crisis Father Charles E. Coughlin: blamed business owners, especially Jewish ones, for the economic crisis Senator Huey Long: income and inheritance taxes on wealthy to give each American a $2500 income, a car, and a college education Senator Huey Long: income and inheritance taxes on wealthy to give each American a $2500 income, a car, and a college education

18 Supreme Court Reacts to New Deal NIRA declared unconstitutional in Schecter Poultry Corporation v. United States (1935): law illegally gave power to Congress to regulate intrastate commerce NIRA declared unconstitutional in Schecter Poultry Corporation v. United States (1935): law illegally gave power to Congress to regulate intrastate commerce United States v. Butler (1936) ruled that AAA was unconstitutional on grounds that agriculture was a local matter United States v. Butler (1936) ruled that AAA was unconstitutional on grounds that agriculture was a local matter

19 FDR Reacts to New Deal Court-Packing: FDR asked Congress to increase the number of judges from 9 to 15 Court-Packing: FDR asked Congress to increase the number of judges from 9 to 15 Aimed at making the S.C. approve the N.D. Aimed at making the S.C. approve the N.D.

20 Andrew Mellon Secretary of the Treasury Secretary of the Treasury Believed course of depression had to be run Believed course of depression had to be run Depression a good thing because values would be adjusted, people will work harder Depression a good thing because values would be adjusted, people will work harder


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