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The Depression The Depression Hoover and FDR Hoover and FDR
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The Depression Hoover and FDR. Herbert Hoover Elected in 1928 primarily because the Republicans were associated with prosperity Elected in 1928 primarily.

Mar 27, 2015

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Page 1: The Depression Hoover and FDR. Herbert Hoover Elected in 1928 primarily because the Republicans were associated with prosperity Elected in 1928 primarily.

The DepressionThe Depression

Hoover and FDRHoover and FDR

Page 2: The Depression Hoover and FDR. Herbert Hoover Elected in 1928 primarily because the Republicans were associated with prosperity Elected in 1928 primarily.

Herbert HooverHerbert Hoover

Elected in 1928 Elected in 1928 primarily because primarily because the Republicans the Republicans were associated were associated with prosperitywith prosperity

Believer in Believer in individualism, free individualism, free enterprise, and enterprise, and laissez-fairelaissez-faire

Page 3: The Depression Hoover and FDR. Herbert Hoover Elected in 1928 primarily because the Republicans were associated with prosperity Elected in 1928 primarily.

Conditions which helped Conditions which helped produce or intensify the produce or intensify the

DepressionDepression OverproductionOverproduction Unequal distribution of wealthUnequal distribution of wealth Overexpansion of creditOverexpansion of credit The depressed condition of agricultureThe depressed condition of agriculture Stock Market speculation: buying on Stock Market speculation: buying on

marginmargin Unwise government policiesUnwise government policies

High tariff, no curbs on Stock MarketHigh tariff, no curbs on Stock Market

Page 4: The Depression Hoover and FDR. Herbert Hoover Elected in 1928 primarily because the Republicans were associated with prosperity Elected in 1928 primarily.

Hoover PoliciesHoover Policies Calls for voluntary Calls for voluntary

cooperationcooperation Asks leading Asks leading

industrialists not to cut industrialists not to cut pay, production, or pay, production, or workersworkers

Asks labor leaders to Asks labor leaders to discourage demands for discourage demands for strikes and higher paystrikes and higher pay

Asks governors and Asks governors and mayors to spend more mayors to spend more on public works to on public works to create jobscreate jobs

But economy continues But economy continues to tumbleto tumble

Page 5: The Depression Hoover and FDR. Herbert Hoover Elected in 1928 primarily because the Republicans were associated with prosperity Elected in 1928 primarily.

HooverHoover

Optimistic: “prosperity just around Optimistic: “prosperity just around the corner”the corner”

Page 6: The Depression Hoover and FDR. Herbert Hoover Elected in 1928 primarily because the Republicans were associated with prosperity Elected in 1928 primarily.

Agricultural Marketing Act Agricultural Marketing Act

19291929 To help farmers help To help farmers help

themselves, largely themselves, largely through producers’ through producers’ cooperativescooperatives

Established Federal Established Federal Farm Board which Farm Board which had no real power to had no real power to reduce production.reduce production.

Page 7: The Depression Hoover and FDR. Herbert Hoover Elected in 1928 primarily because the Republicans were associated with prosperity Elected in 1928 primarily.

Hawley-Smoot TariffHawley-Smoot Tariff

19301930 Increased prices on foreign-made Increased prices on foreign-made

goodsgoods Intended to increase buying of Intended to increase buying of

American-made goodsAmerican-made goods European countries responded with European countries responded with

tariffs on American-made goods.tariffs on American-made goods. Not successful.Not successful.

Page 8: The Depression Hoover and FDR. Herbert Hoover Elected in 1928 primarily because the Republicans were associated with prosperity Elected in 1928 primarily.

FDR and the New DealFDR and the New Deal ““I pledge you, I pledge I pledge you, I pledge

myself, to a new deal myself, to a new deal for the American for the American people.”people.”

Election of 1932 Election of 1932 ushered in an era of a ushered in an era of a different kind of a different kind of a politician.politician.

Master politician: Master politician: intelligent, confident, intelligent, confident, charmingcharming

Master communicator: Master communicator: fireside chatsfireside chats

Page 9: The Depression Hoover and FDR. Herbert Hoover Elected in 1928 primarily because the Republicans were associated with prosperity Elected in 1928 primarily.

Preparing to LeadPreparing to Lead

The Cabinet: Frances The Cabinet: Frances Perkins was the first Perkins was the first woman to hold a woman to hold a Cabinet post (Labor).Cabinet post (Labor).

The “Brain Trust”: The “Brain Trust”: Informal group of Informal group of advisors consisting of advisors consisting of intellectuals, lawyers, intellectuals, lawyers, and economistsand economists

Humanitarian wife Humanitarian wife Eleanor had a great Eleanor had a great deal of influence.deal of influence.

Page 10: The Depression Hoover and FDR. Herbert Hoover Elected in 1928 primarily because the Republicans were associated with prosperity Elected in 1928 primarily.

New Deal in ActionNew Deal in Action

RELIEF for those RELIEF for those people who were people who were suffering.suffering.

RECOVERY for the RECOVERY for the economy so that it economy so that it could grow again.could grow again.

REFORM measures REFORM measures in order to insure in order to insure against future against future depressions.depressions.

Page 11: The Depression Hoover and FDR. Herbert Hoover Elected in 1928 primarily because the Republicans were associated with prosperity Elected in 1928 primarily.

Stages of the New DealStages of the New Deal

1933-1935: dealt with relief and recovery; 1933-1935: dealt with relief and recovery; most passed in the “First Hundred Days”most passed in the “First Hundred Days”

1935-1936: The “Second New Deal”: 1935-1936: The “Second New Deal”: focused more on social reformfocused more on social reform

1936 election: high point of the N.D.1936 election: high point of the N.D. 1937-1938: recession due in part to New 1937-1938: recession due in part to New

Deal cutbacks in spendingDeal cutbacks in spending 1938: N.D. ended to opposition in 1938: N.D. ended to opposition in

Congress and WWIICongress and WWII

Page 12: The Depression Hoover and FDR. Herbert Hoover Elected in 1928 primarily because the Republicans were associated with prosperity Elected in 1928 primarily.

New Deal StrategiesNew Deal Strategies

Use of commerce and elastic clauses of the Use of commerce and elastic clauses of the Constitution to take direct government action.Constitution to take direct government action.

Fiscal action to stimulate economy and lower Fiscal action to stimulate economy and lower unemployment by lowering taxes and unemployment by lowering taxes and increasing government spending.increasing government spending.

Government responsibility for the general Government responsibility for the general welfare of citizens.welfare of citizens.

Increase regulatory role over banks, Increase regulatory role over banks, businesses, and the stock exchange.businesses, and the stock exchange.

Deficit spending: Keynesian EconomicsDeficit spending: Keynesian Economics

Page 13: The Depression Hoover and FDR. Herbert Hoover Elected in 1928 primarily because the Republicans were associated with prosperity Elected in 1928 primarily.

Relief LegislationRelief Legislation

Emergency Banking Act (1933)Emergency Banking Act (1933) Federal Emergency Relief Act (FERA) Federal Emergency Relief Act (FERA)

(1933)(1933) Public Works Administration (PWA) Public Works Administration (PWA)

(1933)(1933) Civilian Conservation Corps (CCC) (1933)Civilian Conservation Corps (CCC) (1933) Works Progress Administration (WPA) Works Progress Administration (WPA)

(1935) (1935)

Page 14: The Depression Hoover and FDR. Herbert Hoover Elected in 1928 primarily because the Republicans were associated with prosperity Elected in 1928 primarily.

Recovery LegislationRecovery Legislation

National Industrial Recovery Act (NIRA) National Industrial Recovery Act (NIRA) 19331933

Home Owners Loan Corporation (HOLC) Home Owners Loan Corporation (HOLC) 19331933

Federal Housing Administration (FHA) Federal Housing Administration (FHA) 19341934

First and Second Agricultural Adjustment First and Second Agricultural Adjustment Acts (AAA) (1933 and 1937)Acts (AAA) (1933 and 1937)

Tennessee Valley Authority (TVA) (1933)Tennessee Valley Authority (TVA) (1933)

Page 15: The Depression Hoover and FDR. Herbert Hoover Elected in 1928 primarily because the Republicans were associated with prosperity Elected in 1928 primarily.

Reform LegislationReform Legislation

Glass-Steagall Banking Act (1933): Glass-Steagall Banking Act (1933): created the FDICcreated the FDIC

Securities Exchange Act (1934)Securities Exchange Act (1934) Social Security Act (1935)Social Security Act (1935) National Labor Relations Act (1935): National Labor Relations Act (1935):

also known as the Wagner Act; also known as the Wagner Act; collective bargainingcollective bargaining

Fair Labor Standards Act (1938) set a Fair Labor Standards Act (1938) set a minimum wageminimum wage

Page 16: The Depression Hoover and FDR. Herbert Hoover Elected in 1928 primarily because the Republicans were associated with prosperity Elected in 1928 primarily.

Reactions to the New DealReactions to the New Deal

FDR built up a “New Deal coalition”FDR built up a “New Deal coalition” ““Solid Democratic South”Solid Democratic South” ““new immigrant” workersnew immigrant” workers Big citiesBig cities African-AmericansAfrican-Americans Organized laborOrganized labor ElderlyElderly Business peopleBusiness people farmersfarmers

Page 17: The Depression Hoover and FDR. Herbert Hoover Elected in 1928 primarily because the Republicans were associated with prosperity Elected in 1928 primarily.

Criticism to the New DealCriticism to the New Deal

Strongest opposition came primarily from Big Strongest opposition came primarily from Big BusinessBusiness

American Liberty League: attacked FDR for using too American Liberty League: attacked FDR for using too much power; free enterprise was being attackedmuch power; free enterprise was being attacked

Dr. Francis Townsend: provide government pensions Dr. Francis Townsend: provide government pensions for the elderlyfor the elderly

Father Charles E. Coughlin: blamed business owners, Father Charles E. Coughlin: blamed business owners, especially Jewish ones, for the economic crisisespecially Jewish ones, for the economic crisis

Senator Huey Long: income and inheritance taxes on Senator Huey Long: income and inheritance taxes on wealthy to give each American a $2500 income, a wealthy to give each American a $2500 income, a car, and a college educationcar, and a college education

Page 18: The Depression Hoover and FDR. Herbert Hoover Elected in 1928 primarily because the Republicans were associated with prosperity Elected in 1928 primarily.

Supreme Court Reacts to New Supreme Court Reacts to New DealDeal

NIRA declared unconstitutional in NIRA declared unconstitutional in Schecter Poultry Corporation v. United Schecter Poultry Corporation v. United StatesStates (1935): law illegally gave power (1935): law illegally gave power to Congress to regulate intrastate to Congress to regulate intrastate commerce commerce

United States v. ButlerUnited States v. Butler (1936) ruled that (1936) ruled that AAA was unconstitutional on grounds AAA was unconstitutional on grounds that agriculture was a local matterthat agriculture was a local matter

Page 19: The Depression Hoover and FDR. Herbert Hoover Elected in 1928 primarily because the Republicans were associated with prosperity Elected in 1928 primarily.

FDR Reacts to New DealFDR Reacts to New Deal

““Court-Packing”: FDR asked Court-Packing”: FDR asked Congress to increase the number of Congress to increase the number of judges from 9 to 15judges from 9 to 15

Aimed at making the S.C. approve Aimed at making the S.C. approve the N.D.the N.D.

Page 20: The Depression Hoover and FDR. Herbert Hoover Elected in 1928 primarily because the Republicans were associated with prosperity Elected in 1928 primarily.

Andrew MellonAndrew Mellon

Secretary of the TreasurySecretary of the Treasury Believed course of depression had to Believed course of depression had to

be runbe run Depression a good thing because Depression a good thing because

values would be adjusted, people will values would be adjusted, people will work harderwork harder