Title: 1929WW II
1The Great Depression and the New Deal
2Herbert Hoover
- After the election of 1928, Hoover stated the
future that It is bright with hope. - Main problems overproduction about, especially
for farmers
3Black Tuesday
- Economy showed signs of slowing down in 1927
based on a reduction in consumer spending, yet
the stock market still rose! - October 29, 1929- 16 million shares traded that
day (3 million was considered a busy day)
4From Downright Bullish to Beary Bad
51893 Depression
Imperialism
WW I
Depression
GNP Per Year
6The Country Reacts
Hoover
- Caution was the watchword
- Orders fell off
- wages decreased or ceased
- Declines in purchasing power brought further cuts
to business - Hundreds of factories and mines shut down
- Farms go into foreclosure
- Lax enforcement of antitrust laws encouraged
monopolies and high prices
7Hoover Reacts
- Unlike his popular image, Hoover did NOT want to
sit by and just let events take their course - In fact, he did more than any previous president
had ever done before in such dire circumstances - Main problem he would not relinquish his belief
that there needs to be limits on government
involvement - He hurried the building of public works to
provide jobs - Modest tax cut to help increase spending
8Built from 1931-1935. Total Bid 49,000,000
9Tariff
- Hawley-Smoot Tariff of 1930- established duties
at an all time high - Economists pleaded for him to veto bill
- Instead of helping, it hurt the farmers because
it hurt export trade and raised consumer prices
10Hoover takes the Brunt
- People turned on the party in power
- Hoovervilles, Hoover Flags, Hoover Wagons
- 1930- Democrats gained the first national victory
since Wilson, winning a majority in the House and
major gains in the Senate
Hoover Blankets and random children
11Volunteerism, not Federal Relief
Hoover says, No soup for you!
- Hoover demanded that each community and state
should work to relieve the distress - He was totally against the dole or direct relief
12Economics and Europe
- After a European economic panic based on a major
bank failure, Hoover placed a one-year moratorium
on reparations and war-debt payments this
became permanent
13Hoover Finally Gives inSort of
- 1932- he agrees to use government resources to
help financial institutions - Reconstruction Finance Corporation loaned money
to banks, insurance companies, farm mortgage
associations and railroads
- It staves off bankruptcies, but Hoover received
flack for favoring business - Federal Home Loan Bank Act- created discount
banks for home mortgages
14Farmers
- Statistics
- Bushel of Wheat in 1919 2.16
- 1929 .32
- Cotton in
- 1929 .17 a pound
- 1932 .05 a pound
- By 1931, relief had been abandoned when the govt.
stopped buying surpluses - Farmers net cash flow dropped by more than 55
- From 1930-1934 nearly one million farmers lost
their farms to the bank
15Attempts to Fight Back
- Some farmers threatened to lynch judges who
ordered foreclosure - Others destroyed their crops or refused to
deliver them to markets in need - All failed some even joined the Communist party
16Bonus Army
- 15,000 Unemployed veterans of WW I converged on
Washington in 1932 - Wanted payment of bonus Congress had voted to be
paid in 1945 - Hoover says no
- Many remain in the Capitol, creating shack towns
or occupying abandoned government buildings - Presence makes Hoover nervous orders buildings
cleared
17Bonus Army Continued
- Shots go off two veteran killed
- Hoover sends in 700 soldiers under leadership of
Eisenhower and Patton - Chased the UNARMED veterans off, injuring many
and killing a 11 week old baby - Irony one of the men evicted had won an award
for saving Pattons life in WW I - Incident does not improve Hoovers public image
18http//us.history.wisc.edu/hist102/photos/html/112
9.html
19Bonus Army Dispersed by Tear Gas
20FDR Election of 1932
- In accepting the nomination, FDR commented
Republican leaders not only have failed in
material things, they have failed in national
vision, because in disaster they have held out no
hopeI pledge you, I pledge myself to a new deal
for the American people.
FDR as a young man in 1917
21Campaign Song in 1932 Happy Days Are Here Again
22Election Results 1932
23FDR Comes to Office
- Big difference between Hoover and Roosevelt is
that Roosevelt was willing to incur deficits to
prevent starvation and dire want - Supported the repeal of Prohibition
- Takes office March 4th, 1933
- 20th Amendment- delay time as lame duck president
now presidents take office on January 20th and
newly elected Congress on January 3rd
24Roosevelt Declares War
- Orders a four day bank holiday to slow rate
people are withdrawing funds to stop other banks
from failing. Emergency Banking Relief Act- banks
that were sound could reopen after 4 days those
still in trouble were assigned managers. He
renews confidence in banking through his first
fireside chat banking crisis was over! - I shall ask Congress for the remaining
instrument to meet the crisis broad executive
power to wage a war against the emergency as
great as the power that would be given me if we
were in fact invaded by a foreign foe. - Roosevelts three step program Relief
(immediate), Recovery (get back to time before
Depression), Reform (measures to stop it from
happening again)
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27FDRs philosophy Take a method and try it. If
it fails admit it frankly and try another.
28Roosevelt Quick to Act
- December 5, 1933 21st Amendment repeals
Prohibition - Hundred Days- this is what Roosevelt asked of
Congress and the people in order to put the
country on the path of relief - Congress enacted 15 major proposals unlike
anything seen before
29Let the Recovery and Reform Begin
- Home Loan Act- home owners could refinance for
lower monthly payment reduce foreclosures
(continuation from Hoover) - Glass-Steagal Banking Act creates the Federal
Deposit Insurance Corporation (FDIC) to guarantee
bank deposits up to 5,000 (today, 100,000)
30Gold is Gone
- On April 19, 1933 the government abandoned the
gold standard and made all contracts payable in
legal tender - Gold Reserve Act- authorized the president to
impound all gold in the Federal Reserve
31Alphabet Soup
- Alphabet soup is phrase used to describe FDRs
numerous New Deal programs - Civilian Conservation Corps (CCC)- designed to
provide jobs to unmarried and unemployed men
between 18 to 25. Worked in parks, forests, etc.
Paid 30 a month but 25 had to go home to their
family - Racially segregated
- In Texas, blacks were told they were ineligible
so they would not compete with whites for these
jobs
32CCC Farming in Maryland 1933
33CCC Planting out West
34- Federal Emergency Relief Act- gave money to
states through grants rather than loans - wanted localities to create work rather than
the dole most just went with dole because it
was easier
Squatter, Arkansas 1935
35Agricultural Adjustment Act 1933
- Gave money to farmers to cut back on production
- Pay farmers to destroy livestock and crops
36Wheres the Bacon?
- Agriculture Secretary Henry Wallace it was
troubling to see the spectacle of 6 million
little ink pigs slaughtered before they could
reach the full hogness of their hogdom.
37The Dust Bowl
- 1932-1935- devastating drought in the plains
- Caused great displacement and many headed west as
seen in Steinbecks novel The Grapes of Wrath - Impacted Mexican-Americans and African-Americans
greatly - Mexicans- not citizens, so they could not receive
New Deal benefits - African-Americans were sharecroppers and
usually first to lose their land because need
less land cultivated under the AAA
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40Okies
- Dust Bowl refugees (a.k.a. migrant workers) were
lumped together and called Okies - Approximately 800,000 left their states and
headed West, especially to California - California was no paradise a lot of local
competition from Mexicans and Asians for jobs
- Met a lot of social prejudice from Native
Californians - Steinbeck Okie usta mean you was from
Oklahoma. Now it means youre a
dirty-son-of-a-b. Okie means youre scum.
Dont mean nothing in itself, its the way they
say it.
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42Back to the Soup
- National Industrial Recovery Act (NIRA)- focus on
recovery through public works - Public Works Administration (PWA)- building
permanent improvements while providing jobs.
Built Miami to Key West Bridge and the Chicago
Subway System
43National Recovery Administration (NRA)
- Goals (membership voluntary, no membership
unpatriotic) - Stabilize business with codes of fair competitive
practice (codes did not include farmers) - more purchasing power by providing jobs, defining
labor standards and raising wages - Congress passed legislation that set a 40 hour
week for clerical workers, a 36 hour week for
industrial workers, a minimum wage of 40 cents an
hour, abolished child labor and a guaranteed the
right that trade unions could organize and
exercise the right of collective bargaining.
Declared unconstitutional in 1935. -
44- However, violations of codes became common. and
attempts were made to use the courts to enforce
the NRA. In 1935 the Supreme Court declared the
NRA as unconstitutional. - The reasons given were that many codes were an
illegal delegation of legislative authority and
the federal government had invaded fields
reserved to the individual states.
45Tennessee Valley Authority (TVA)
- Plan for an entire watershed to be used primarily
for generating power, flood prevention and
generating industry - Built dams
- Brought cheap power to this area, especially to
many farms that had never had electricity - Electric lights and modern appliances made life
easier and farms more productive. Electricity
also drew industries into the region, providing
desperately needed jobs.
46TVA Map
47New Deal Critics Huey Kingfish Long
- Senator from Louisiana
- Share Our Wealth Program- wanted to spread
wealth equally throughout the country address
the issue of wealth distribution
48Father Charles E. Coughlin
- Founded the National Union for Social Justice
- radio priest
- Favored coining silver and attacked bankers with
comments that often bordered anti-Semitic - Both Long and Coughlin pushed FDR to do more
reform
49Second New Deal Programs
- Wagner act- workers given the right to bargain
through unions of their own choice - Social Security Act of 1935- (cornerstone of
New Deal) pension fund for those over 65,
established unemployment insurance programs, and
began a broad range of social-welfare activities
based on assumption that unemployables would
remain a state responsibility while the national
government would provide work for the able bodied
50Social Security Problems
- Took money out of paychecks, therefore out of
pockets, so could not be spent - Initially excluded farmers (surprise!), domestics
and self-employed
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52Works Progress Administration (WPA)
- This replaced the Federal Emergency Relief
Administration- this provided money to help the
unemployed find work in public works and the arts - The WPA program in the arts led to the creation
of the National Foundation for the Arts and the
National Endowment for the Humanities. - "I THINK THAT WE SHALL NEVER SEE / A PRESIDENT
LIKE UNTO THEE . . . POEMS ARE MADE BY FOOLS LIKE
ME, / BUT GOD, I THINK, MADE FRANKLIN D." - http//www.pbs.org/wgbh/amex/dustbowl/peopleevents
/pandeAMEX10.html
53Election of 1936
54Election of 1936
- For the first time since the 15th amendment, a
majority of political active blacks voted
Democratic - One person claimed that their debt to Lincoln
had been paid.
- Many believed Roosevelt would lose
- Critics complained that the economy had become
too centralized and threatened both individualism
and American liberty - He won in a landslide
55Court Packing Plan
- The Court had ruled against 7 of FDRs programs,
mostly based on too extensive a use of executive
power - FDR feared for his Second New Deal programs they
were more radical than the first New Deal - Congress, not the Constitution determined number
of justices FDR wanted more - FDR wanted to increase the of Supreme Court
justices from 9 to 16 and decrease power of
judges who had served for ten or more years
56- Even Democrats fought over the implications of
the plan - It blew up in Roosevelts face never went
through - Yet, the court never struck down another New Deal
Program - In 1938 he appointed Hugo Black to the court a
former Klan member
57Great Depression Ends
- Finally, in 1938, FDR asked for 33 billion to
dump into both the PWA and WPA to help increase
spending and reverse the once again declining
economy - His failure to adopt an even greater amount of
government spending, as called for in pure
Keynesian economic theory, retarded the economies
ability to fully recover - Recovery to pre-1929 levels would occur during WW
II