Chapter 22.3-23.1 Notes
Hoover’s thoughts on the Depression Herbert Hoover thought it was job of the gov’t help different groups work together not get directly involved Promoted “rugged individualism” people succeed through their own efforts Against any form of direct federally funded relief, though private charities and local governments should handle it Believe handouts weaken people, make them dependent and lazy
Hoover’s 1st Actions Met with heads of business, banking, and labor ask them to find solutions and act in ways that would not make situation worse Doesn’t help 1930 election Democrats win big, shows public dislikes Hoovers response (or lack there of)
Hoover’s 2nd Steps Federal Home Loan Bank Act: (1932) lowered mortgage rates for homeowners and allowed farmers to refinance their loans and avoid foreclosure Reconstruction Finance Corporation (RFC): (1932) authorizes up to $2billion for emergency financing for banks and other companies. Believed money would cause a trickle down effect
Bonus Army Made up of 10,000-20,000 WWI veterans Marched to Washington, DC in support of Patman’s Bill (allowed gov’t to give WWI veterans a bonus for their service in the war) Senate votes down bill, about 2000 men refuse to leave Bonus Camp Hoover authorizes 1000 soldiers to clear army out, does so very violently Ruins Hoover politically
Election of 1932 and FDR Election of 1932: Hoover (Rep) vs Franklin Delano Roosevelt (Dem) FDR Wins! Elected in Nov, does not take office until March 1933 In down time forms “Brain Trust”, group of advisors made up of professors, lawyers, etc to help him develop policies
The New Deal Calls his program the “New Deal” Fireside Chats Focuses on the 3R’s Relief, Recovery, and Reform Hundred Days: March 6-June 16, 1933 Passes more than 15 pieces of major legislation
Helping the Banks Glass-Steagall Act Federal Securities Act Bank Holiday (shuts them down) Emergency Banking Act (federal gov’t can inspect banks for success) Glass-Steagall Act Establishes FDIC Federal Securities Act Corporations must provide complete reports and stock information
Alphabet Soup: New Deal Plans Agricultural Adjustment Act (AAA) Tennessee Valley Authority (TVA) Civilian Conservation Corps (CCC) National Industrial Recovery Act (NIRA) Civil Works Administration (CWA) National Recovery Administration (NRA) Home Owners Loan Corporation (HOLC) Federal Housing Authority (FHA) Federal Emergency Relief Administration (FERA)
Other Plans and Disagreement Unhappiness with deficit spending, FDR sees as necessary evil, others see as bad policy Supreme Court rules NIRA and AAA unconstitutional, gives executive branch too much power Court Packing FDR wants to increase number of Supreme Court justices by 6 Does not pass