Mr. Bennett 8 th Grade

Stock Market crash on October 29, 1929 – Black Tuesday Overproduction Decline in American consumer spending Decline in housing market

Defaulting on loans Banks closing Companies forced into bankruptcy

Unemployment rose to 25% by 1933 Hoovervilles – towns of rundown shacks outside major cities, newspapers were called “hoover blankets” Heads of households were out of work People lost savings accounts

Met with business executives and encouraged city and state governments to create public works projects Created the Reconstruction Finance Corporation to fund critical businesses and banks Bonus Army – Congress had approved a bonus payment of $1,000 to all veterans of WWI to be paid in Veterans wanted their money earlier due to the Depression. Hoover refused and 20,000 veterans marched to Washington. The government responded with tear gas, tanks, and machine guns. Political downfall of Hoover.

Elected in 1932 because Hoover did little to combat the depression. Got 57.4% of the popular vote. His advisers were known as the “brain trust” Promised a “New Deal” Relief for the jobless Economic recovery

Reforms to prevent future depressions Bank Holiday – four day closing of the nation’s banks to halt bank failures Fireside chats – radio talks used by FDR to reach out and restore confidence to the American people Alphabet Programs – series of public works programs to put people back to work and to restore confidence in the banking system

Signed a record 15 new bills. Goals: relief for the jobless, economic recovery, reforms to prevent future depressions.

What were FDR’s goals for combatting the Depression? List and describe one program he created to achieve each of his goals. Example: Goal- relief for the jobless-program=Civilian Conservation Corps: gave jobs to young men doing things like building parks and bridges.

GoalProgramWhat it Did Unemployment ReliefCCCBuilt bridges, planted trees

Supreme Court ruled several New Deal programs unconstitutional FDR proposed adding 6 new Supreme Court Justices Though this would help him pass and keep more of New Deal programs. Conservative judges opposed and thought he was “packing the courts” with liberal judges as a political power play.

Congress shot down his “Court Packing” plan. FDR still got to appoint eight new Justices during his presidency. Conservatives thought that FDR went too far to regulate businesses. Liberals thought he did not do enough to help the poor