1. Hoover, FDR, and the Great Depression

2. Herbert Hoover and Voluntarism

3. Herbert Hoover Grew up in a poor family in a small Iowa town
Trained as a mining engineer
Ran U.S. Food Administration during WWI
Promoted government-business partnerships
Elected President as a Republican in 1928

4. “Voluntarism” (or “Volunteerism”)
People are responsible for helping themselves
No direct federal government aid for the poor
Communities should work together to help the poor
Keep the budget balanced – no deficit spending
Prosperity “trickles down” from businesses to everyone else

5. Hoover’s Policies – The Early Years
Asked business not to cut jobs or wages
Reduced taxes to boost consumer demand
Urged the wealthy to give to charity
Asked state government to increase aid for the poor
Constant optimism – tried to restore confidence in the economy

6. Problem: this didn’t work
Unemployment and homelessness continued to rise
Local governments and charities ran out of money
Hoover became increasingly unpopular
Hoovervilles = shanty towns
Hoover Houses = cardboard boxes
Hoover Heaters = campfires

7. Hoover’s Policies – The Later Years
Reconstruction Finance Corporation
Created 1932
Provided loans to banks, railroads, big businesses
Exemplified trickle-down economics
Hoover Dam
Massive public works project on the Colorado River
Created jobs in a depressed area

8. The Bonus Army
After WWI, Congress promised cash payments to veterans in 1945
The Depression left many veterans unemployed
Summer 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 Washington
July 1932: Hoover orders evacuation of Bonus Army
July 28:U.S. Army forcibly evicts Bonus Army
Negative publicity destroyed Hoover’s re-election campaign

10. The 1932 Election Why would Hoover be unpopular?
Economy still hasn’t recovered
People think Hoover hasn’t done enough
Bonus Army is terrible publicity
What do you think people are looking for?
More decisive, drastic action
Someone who understands them

11. FDR and the New Deal

12. Franklin Delano Roosevelt
Born into a wealthy, well- connected New York family
Disabled by polio in his forties
Elected president as a Democrat in 1932
Promised 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, 1932
How 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 Depression
Significance
Helped end the Depression and reduce unemployment
Radically expanded the government’s role in economic life

15. Principles of the New Deal
Relief – help the needy
Recovery – end the Depression
Reform – change the economy so that the Depression can’t happen again

16. Fireside Chats
Date:
Series of radio addresses by FDR on national issues and proposed laws
Significance
Helped build support for New Deal programs
Encouraged Americans to feel closer to the President

17. Fireside Chats
How 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)