Warm up What do think about the passage and the picture? "66 is the path of a people in flight, refugees from dust and shrinking land, from the thunder of tractors and invasion, from the twisting winds that howl up out of Texas, from floods that bring no richness to the land and steal what little richness is there." Chapter 12, pg. 150 What do think about the passage and the picture?

Hoover & FDR Respond to the Great Depression CH 14-15

Hoover’s Response NO DIRECT RELIEF WHY? He believed private groups should provide relief He believed in “rugged individualism” He believed the economy would improve on its own, and people would endure/survive.

Hoover’s Response Toward the end of Hoover’s term as president, the Depression had only gotten worse. In an effort to improve his reputation, Hoover started some programs that attempted to ease the Depression. Boulder (Hoover) Dam (1929): created jobs for unemployed; provided irrigation for the region Federal Home Loan Bank Act (1932): lowered mortgage rates so people could afford to pay Reconstruction Finance Corporation (1932): gave gov’t loans to businesses and banks, but did nothing for individuals

Hoover’s Response In 1932, just a few months before the next presidential election, Hoover had another problem. Bonus Army: a group of WWI veterans who demanded their bonuses early. They set up a “Hooverville” right outside of Washington, D.C., but Congress did not pay them their bonus. Instead, Hoover asked the army to clear out the Bonus Army veterans, and the army ended up killing and injuring some of the veterans. In 1924, a grateful Congress voted to give a bonus to World War I veterans - $1.25 for each day served overseas, $1.00 for each day served in the States. The catch was that payment would not be made until 1945.

Bonus Army video Movie Bonus Army Video: 9minutes

How do you think people felt about President Hoover after this?

FDR’s New Deal Franklin Delano Roosevelt (FDR) won the 1932 election because people were fed up with Hoover. In FDR’s first 100 days as president, he and congress created many new programs that would help the American people and ease the troubles of the Great Depression. Together all these programs were known as the “New Deal.”

FDR’s New Deal FDR told the nation his plans in weekly “fireside chats.” These fireside chats were radio speeches that made the people feel like FDR was sitting right next to them in their living room as they listened. These speeches eased the nation’s fears and made them trust FDR.

RELIEF – help individuals who need it most FDR’s New Deal The New Deal had three important goals: RELIEF – help individuals who need it most RECOVERY – stimulate economic growth REFORM – prevent this from ever happening again

FDR’s New Deal New Deal Programs Emergency Banking Relief Act: closed all banks to prevent anymore withdrawals Treasury Dept. inspected all banks banks that were stable were allowed to reopen, those that were not remained closed until they could be reorganized and managed better

New Deal Programs There were many other programs as well. Use your chart to understand and study these New Deal agencies.

FDR’s New Deal There were some people who did not like FDR’s programs. Here’s why. Many people still believed that the individual should take care of himself. If you help needy people, they will become dependent. FDR’s programs were based on deficit spending, which means that the government was spending more money than it was making. Some people thought the New Deal was socialism – which is when the government partially controls the economy. (Remember that Americans had always believed that government should keep it’s hands off business!)

FDR’s New Deal By 1937, even the Supreme Court had declared some of FDR’s New Deal programs unconstitutional. FDR’s response was to try to change the Supreme Court. FDR suggested that six new justices would be added to the Supreme Court because he wanted to be able to choose these new judges and “stack the team” in his favor. Critics called this his “court-packing scheme” and it never succeeded. In the end, one justice retired and FDR was able to appoint a judge that supported his New Deal.

What does this cartoon imply about FDR?

Eleanor Roosevelt Inspires Changes FDR was not the only important person in the White House during the Depression. His wife, Eleanor Roosevelt, spoke out on behalf of women and minorities. Frances Perkins was appointed Secretary of Labor and became the first female cabinet member. Mary McLeod Bethune was an African American woman who advised the president on minority affairs.

Effects of the New Deal The New Deal permanently changed the role and responsibilities of the federal government. It created social welfare agencies (Social Security, etc.) It increased people’s expectations of what the federal government can/should do. It created regulatory agencies (SEC, FDIC, etc.) It increased the power of the federal government.

Effects of the New Deal The New Deal also renewed American’s belief in their democratic government. Other nations, like Germany and Italy, surrendered political power to dictators during this same time period.

Effects of the New Deal However, the New Deal also had some negative effects. National debt increased from $16b to $42b. It created a large bureaucracy – which means that power was split into many different agencies with many responsibilities.

Effects of the New Deal So, did the New Deal end the Great Depression? NO!

Effects of the New Deal The Great Depression did not end until the U.S. entered World War II. BUT, the New Deal did help to ease the problems of the Great Depression and it helped a lot of needy people get back on their feet.