1. PRESIDENT HOOVER AND THE GREAT DEPRESSION

2. HOOVER’S PHILOSOPHY RUGGED INDIVIDUALISM  “hands off” approach by the government  little to no government intervention  people should be responsible for their success or failure not responsibility of the government ASSOCIATIVE STATE  voluntary partnerships between business associations and government  lead to a fair and efficient economy  voluntary program – more “buy-in”  work together to achieve goals for country

3. HOOVER’S PHILOSOPHY HOOVER DAM and the ASSOCIATIVE STATE  partnership between private business and federal government  federal government provided funding – independent companies designed and constructed the dam  construction began September 1930 and completed in 1935 fined per day if not completed on time  approximately 100 people died during construction of dam drowning, blasting, falling rock, falls from canyon walls, heavy equipment deaths  results were electricity and water supply to seven states Hoover Dam - Vegas Vacation Story of US – Hoover Dam 6:18 – 19min

4. HOOVER’S RESPONSE VOLUNTARY COOPERATION  government should not provide direct aid to the people guide people in the right direction  create cooperation between businesses and government  cooperation would lead to money for consumers to spend on goods – crisis would pass  NOT SUCCESSFUL! DIRECT ACTION (Reconstruction Finance Corp)  Hoover’s Last Stand!  country continued downward spiral – Hoover needed direction  RFC – expansion of federal government role in business  RFC initially given $500 million but allowed to borrow up to $2 billion restore confidence in big industries ----restore purchasing power large banks, railroads, farm mortgage associations, savings and loan associations, insurance companies  Federal Home Loan – encouraged new construction and reduce foreclosure  Golden Gate Bridge and Los Angeles Aqueduct build through RFC funds  too little too late as nation headed into election of 1932 RFC Stimulus

5. HOOVER’S RESPONSE SMOOT-HAWLEY TARIFF ACT  1930 Hoover gave into pressure from American industrialists  designed to protect American industry from overseas competition  raise cost of imported goods so Americans could purchase cheaper American made products  largest tariff in American history  Did not work  global trade dropped drastically  Europeans responded with tariffs on American goods

6. NATION’S RESPONSE to HOOVER PRESIDENT LOSES FAVOR  Hoover lost credibility fairly quickly with optimistic comments “the basic economic foundation of the nation is sound” “I am convinced that we have passed the worst”  Still no direct relief  Gave billions to banks and businesses (RFC) but nothing to the people  Hoover completely out of touch with the people BONUS MARCH MAY 1932  WWI Veterans to receive bonus from service in 1945 – demanding bonus NOW!  marched to Washington and demanded discussion with President  set up Hooverville outside White House  Hoover sent in army when the veterans refused to leave – Army led by MacArthur  troops brought tear gas, guns, bayonets, tore down shacks, etc.  pictures published in newspapers Bonus March

7. NATION’S RESPONSE to HOOVER VOTER REACTION  1930 Midterm Election Republicans controlled Congress during 1920’s 1930 – Democrats won majority in the House within 1 seat of taking the Senate  1932 Election – no way possible for Hoover to win  FDR established personal connection with the people  resulted in landslide victory for FDR and the Democratic Party  Democrats also took control of the House and the Senate

9. FDR AND THE GREAT DEPRESSION

10. ROOSEVELT’S PHILOSOPHY ROOSEVELT’S STRENGTHS  Optimistic, confident leader  Effective communicator out amongst the people much more connected to the people than Hoover had been  reform minded President – ideas seen as progressive (progress, change) PUBLIC WORKS PROGRAMS  FDR believed it was the governments job to take direct action and help the people opposite to Hoover’s initial approach  Duty of government to solve economic and social problems those in need should receive assistance from the government  Instituted public works programs government funded building projects created to provide jobs to unemployed – put people back to work!

11. ROOSEVELT’S RESPONSE BANK HOLIDAY  fixing the nation’s banking system was top priority upon FDR’s election  2 days after his inauguration FDR took action  large-scale withdrawals = bank failures = more panic = more withdrawals = more bank failures  FDR temporarily ordered all banks to close – Bank Holiday  FDR’s attempt at stopping banks from collapsing  Emergency Banking Act – government officials power to examine banks and either fix or close the banks  FDIC (federal deposit insurance corporation) – government insurance for savings deposits idea was for people to feel safe enough to put their money back in banks again  banks began to reopen confidence in banking system began to build $1 billion in new deposits within a month

12. HUNDRED DAYS  FDR pushed Congress to put in place many new government programs  Programs all part of what Roosevelt promised during his campaign – “a new deal for the American people”  New Deal programs pushed by FDR through Congress in an attempt to stimulate the economy  Government intervention believed to be the answer to recovery  these types of government programs known as “pump priming” pumping money back into the economy  programs attempted to accomplish 3 goals relief – for those suffering recovery – of the depressed economy reform – prevent future economic crises

13. NATION’S RESPONSE CONSERVATIVES  saw the New Deal as being very radical – too much government control break from the traditional ideals of America went against everything our country was founded upon leading critic was Senator Huey Long from Louisiana believed policies were too friendly to banks and businesses American Liberty League felt policies were antibusiness Balance of Power many believed New Deal threatened balance of power between President, Congress and the courts President has too much power under the New Deal

14. Hoover/FDR Video clips New Deal Part 1 New Deal Part 2 Hoover