Write down these terms and match them with the correct definition on your own paper

Instructions• Pick up a Google Chromebook• Log in: use your full login

– [email protected]• Go to my website (Great Depression)

http://goo.gl/TACS9J• Wait for instructions.

End of the 1920s• Election of 1928

– Coolidge not running for a second term.

• Hoover vs Smith– Herbert Hoover

• Sec. of Commerce under Harding

• “Prosperity for everyone”• “we are nearer to the final

triumph over poverty…”– Alfred Smith

• Irish-Catholic-DemocratTriple Whammy

End of the 1920s• Election of 1928• Biggest Issue of the 28

Election?

Triple Whammy

21st Amendments repeals the 18th, ending Prohibition 1933

Hoover Disconnected?• Oct 25, 1929- Hoover claims

the foundation of nations industry is strong.

• Oct 29, 1929- Stock Market Crashed

• March 30, 1930- Hoover, “the worst effects of the Crash will pass in 60 days.”

Hoover’s Philosophy

• Believed:– in “rugged individualism”

• the idea that people succeed through their own efforts

– in confidence economics “Prosperity is right around the corner.”

– money given to business leaders would trickle down…

The “Hoover” Depression• Believed help should

come from local governments– State– City– Red Cross– Salvation Army– Churches– Charity

Debt vs. DeficitGovernment Spending • 2008 -4,000,000

• 2009 -10,000,000• 2010 -5,000,000• 2011 +6,000,000 (surplus)• 2012 -3,000,000

• Military• Social Programs

– Health care– Welfare– Unemployment

• Education Yearly

Spending

Red = Govt spends more money than they make (deficit)

Blue = Govt makes more money than they spend. (surplus)

Debt from 2008 to 2012

-16,000,000

The “Hoover” Depression• Did little to

– spur job growth– stimulate the economy – grant government relief.

• Because he believed GOVT relief would contribute to DEFICIT SPENDING

• * Relief = Aid in any form given by govt to people.

Too little too lateVoluntary efforts1930

Encouraged business leaders to PLEDGE to stop slashing wages.

Only lasted a year

Public Works Govt. financed building projects

Could not compete with the amount of jobs lost in public sector.

National Credit Corp Govt money given to banks to keep lending.

Did not meet nations needs.

Reconstruction Finance Corp

Make loans to railroad, banks & farms

Did not meet nations needs.

Emergency Relief & Construction act

Money given to states for relief & jobs

Not enough to fight effects of depression

Hoover looks bad

Hunger Marches Homeless & jobless petitioned Washington to “tax the rich”. Faced violence from police.

Farmer’s Revolts Foreclosed farmers destroyed their crops hoping to drive up prices or prevent banks from profiting on their hard work

Bonus Marches WWI veterans asked for bonuses early. “Patman Bill” assembled in Washington. Hoover ordered army to break up the crowd.

Hoover’s Legacy• Failed President• Lost to Roosevelt in ‘32

biggest landslide in US history.

• Did more in govt relief than any president before him.

• Depression & Bonus Marches looked bad in the eyes of Americans.

Roosevelt’s Philosophy• Expand the role of the Executive

Office.• Create federal aide for

unemployed• Promote work relief and create

jobs that do not compete with private industry.

• Abandoned the gold standard• Allow Fed reserve to manipulate

value of the dollar

Franklin D. Roosevelt’s Appeal• In 1932 presidential

election, FDR was perceived as a man of action.

• Hoover was viewed as a “do-nothing president.”

• Results: a landslide for Democrats and a mandate to use government as an agency for human welfare.

Situation When FDR Entered Office• In March 1933, the

country was virtually leaderless and the banking system had collapsed.

FDR Restored Confidence• In his inaugural address,

he said “The only thing we have to fear is fear itself….”

• He promised vigorous leadership and bold action, called for discipline and cooperation, expressed his faith in democracy, and asked for divine protection and guidance.

Presidency• March 4 1933-Inauguration Day

– US unemployment @ 25%– Most banks were closed

• Gold Standard = Bank Standards– Economy in shambles

• First Hundred Days– Sent dozens of BILLS to Congress– Congress passed 15 BILLS into ACTS

of legislation (New Deal)– Set Precedent for future presidents.

Purposes of the New Deal• Relief: to provide jobs for the

unemployed and to protect farmers from foreclosure

• Recovery: to get the economy back into high gear, “priming the pump”

• Reform: To regulate banks, to abolish child labor, and to conserve farm lands

• Overall objective: to save capitalism

Sources of New Deal Ideas• Brains Trust: specialists and

experts, mostly college professors, idea men

• New Economists: government spending, deficit spending and public works, government should prime economic pump

• Roosevelt Cabinet: included conservatives, liberals, Democrats, Republicans, inflationist, anti-inflationists -- often conflicting, compromising, blending ideas

First New Deal (1933-1934)• Emphasis: reform• Political Position: conservative • Primary aim: economic recovery• Philosophy: economic

nationalism and economic scarcity (i.e., raise prices by creating the illusion of scarcity)

• Objectives: higher prices for agriculture and business

• Beneficiaries: big business and agricultural business

Second New Deal (1934-1941)

• Emphasis: reform• Political Position: liberal• Primary aim: permanent reform • Philosophy: international

economic cooperation and economic abundance

• Objectives: increased purchasing power and social security for public

• Beneficiaries: small farmers and labor

Legacy

• New Deal did not end the Depression!• Balanced economic interests• New ROLE for Federal government• Safety net- safeguards for average Americans• Made govt too powerful