2. Hoover, The Crash, and FDR Zisk US History

3. 1920s begin...

4. Warren G. Harding n Republican n lower taxes, nat. debt n pro big business/ high tariffs

5. n “ America First” n “Ohio Gang” n Scandals n Dies in 1923 of a...

6. Silent Cal Coolidge n Reserved n Honest n No nonsense n conservative n pro-business

7. 1924 election n Rep. Coolidge n Dem. JW Davies (Al Smith) n New Prog. LaFollette

8. Post-war Eco. n $ strong n Loans n Germany’s blank check $30+ billion n Dawes Plan 1924

9. Dawes Plan

10. U.S. economy n Silent Cal says... n “Business of America is business.” n “the man who builds a factory builds a temple”

11. “sick industries” n Coal n textiles n growth = S n S = P ($)

12. 1928 election n “I choose not to run” n Rep. Herbert Hoover Sec. of Commerce n Dem. Al Smith the “Happy Warrior”

13. Campaign issues n radio influential n “rugged individualism” vs. welfare state of socialism n Prosperity

14. Hoover’s Years n “get rich quick” n 1929 Agricultural Marketing Act n Smoot - Hawley Tariff of 1930 (60%)

15. The Crash n unregulated stock market speculation n PEAK Oct. 24, 1929 n Black Tuesday, Oct. 29 Hits Bottom

18. What should government do? n 1933 25% unemployed n Private efforts … soup kitchens, bread lines n Hoovervilles, Hobos n Hoover’s action based on American Individualism … associationalism and cooperative individualism

19. “Prosperity is just around the corner” n Urged the lowering of taxes n Began public works projects n Urged voluntary lower farm production n Reconstruction Finance Corp … trickle down effect n Bonus Army fiasco

20. Franklin Delano Roosevelt n “I pledge myself to a new deal for the American people” n “The only thing we have to fear is fear itself – nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance.”

21. First 100 Days …3 R’s n Bank Holiday n Relief, Recovery, Reform n Glass-Steagall banking reform FDIC n NIRA …business cooperation on production/prices, codes of fair competition, min. wage and max. hours, NRA “We do our part”

22. n HOLC-Homeowners Loan Corp n Federal Securities Act n AAA-Agriculture Adjustment Act n TVA-Tenn. Valley Authority … Sen. George Norris n Federal Emergency Relief Admin. Harry Hopkins n CWA-Civil Works Authority n CCC-Civilian Conservation Corps

23. Success? n Fireside Chats n Brain Trust n Rural Electrification Admin. n WPA-Works Progress Admin. n 1936 election … do you like FDR?

24. Criticisms!!! n Increase in power of Fed.govt. n Increase in presidential power n Loss of power to states/people n Business restricted n Supreme Court n Huey Long’s “Share the Wealth” n Fr. Coughlin and Townshend

25. Second New Deal Wagner Act or National Labor Relations Act 1935 n Labor Unions have right to organize and bargain collectively n National Labor Relations Board

26. Social Security Act 1935 n system of old age insurance n Paid by workers and employers n 65 years = pension n Unemployment insurance n Care of children

27. Changing Democratic Party Changing Democratic Party … n Always been heterogeneous but now …women, Hispanics, and African-Americans n “Black Cabinet” Mary McLeod Bethune n Unions … Fair Labor Standards Act 1938 40 hr week, min.wage

28. In the end … n FDR never understood economics… 1. Hoover had spent Govt.’s $$ 2. FDR wanted balanced budget 3. 1937 “Roosevelt Recession” 4. 1938 Keynesian economics n WAR Arsenal of Democracy

29. The Importance … n Forced a change in the relationship between workers and employers n “Welfare State” n power of Federal Government n Fed’s presence in citizens’ lives

30. n Power of state/local govts. n American citizen’s freedom and privacy n Presidential power n Deficit spending acceptable idea n “balancing of the human budget”