Fixing The DepressionFixing The Depression

Hoover, FDR & The New DealHoover, FDR & The New Deal

Characteristics of the Characteristics of the DepressionDepression No moneyNo money

Lots of dustLots of dust Few resourcesFew resources

– Food, water, Food, water, necessitiesnecessities

Lay-offsLay-offs Cows lungs’ filled Cows lungs’ filled

with dustwith dust Deaths – suicide Deaths – suicide

rate increasedrate increased DebtsDebts UnemploymentUnemployment

Could’ve been Could’ve been preventedprevented

Ruined top soilRuined top soil Stock market crashStock market crash OverproductionOverproduction Unequal distribution Unequal distribution

of wealthof wealth Banks closedBanks closed Low crop pricesLow crop prices Foreclosures on Foreclosures on

homeshomes

Herbert HooverHerbert Hoover Born in West Branch, IowaBorn in West Branch, Iowa Orphaned at age 10, moves to Cali. w/Uncle.Orphaned at age 10, moves to Cali. w/Uncle. Attends Stanford, becomes an Engineer.Attends Stanford, becomes an Engineer. Becomes millionaire as engineer across the Becomes millionaire as engineer across the

globe.globe. 1914 WWI = Comm. for relief in Belgium1914 WWI = Comm. for relief in Belgium

– Feeding those in needFeeding those in need 1917 U.S. in the war…Hoover home to Food 1917 U.S. in the war…Hoover home to Food

AdministratorAdministrator Sent back to Europe to aid relief work.Sent back to Europe to aid relief work. Harding & Coolidge Admin. = Sec. of CommerceHarding & Coolidge Admin. = Sec. of Commerce Easily elected, very popular man at the time.Easily elected, very popular man at the time.

A Most Vicious Circle

Hoover’s philosophy Hoover’s philosophy Many blame Hoover for DepressionMany blame Hoover for Depression Not his fault, but response was not Not his fault, but response was not

popular.popular. Rugged IndividualismRugged Individualism

– Idea that success comes through Idea that success comes through individual effort and private enterpriseindividual effort and private enterprise

Believed private charities and local Believed private charities and local communities should assist those in communities should assist those in needneed

NO FEDERAL HANDOUTS!NO FEDERAL HANDOUTS!

Hoover policiesHoover policies Encourages owners to keep factories Encourages owners to keep factories

runningrunning Public Works projects – Hoover DamPublic Works projects – Hoover Dam

– Stimulate Business by providing contractsStimulate Business by providing contracts– Employ people, offer jobs.Employ people, offer jobs.

Overall $800 million in public works Overall $800 million in public works money.money.

Ag. Marketing Act, Home Loan Bank Act, Ag. Marketing Act, Home Loan Bank Act, Reconstruction Finance CorporationReconstruction Finance Corporation

Hoover FailsHoover Fails

Becomes very unpopular by 1932.Becomes very unpopular by 1932. Programs aren’t working, he continues Programs aren’t working, he continues

to make optimistic statements, trying to make optimistic statements, trying to be positive.to be positive.

Frustration Builds, Frustration Builds, Bonus Army – 10,000 WWI Veterans Bonus Army – 10,000 WWI Veterans

march on Wash.march on Wash.– Hoover has them removed, forcefully, Hoover has them removed, forcefully,

fire…fire…

Bonus Army

1932- WWI vets march on Washington demanding an early payment of their pension

Problem: Pensions were in the form of bonds that couldn’t be paid out until 1945 when they matured

Hoover said can’t pay yet due to need for money for public works project and it would mean putting the government into deficit.

Bonus Army cont.

Vets set up tents and camped out on the Mall

Hoover and administration asked them to leave numerous times but they refused.

Hoover’s Respons

Brought in the troops and the tanks! The vets’ camp was burned Fifty-five veterans were injured and

135 arrested. A veteran's wife miscarried. When 12-week-old Bernard Myers died in the hospital after being caught in the tear gas attack

Attack shown on news reels

The Final Results…

President Franklin Roosevelt did not want to pay pensions early either but handled problem with more care.

After circulating the media, so much popular support was drawn by the public Congress passed a bill to allow for early payment. FDR vetoed bill, but Congress would override his veto in 1936 and the vets would finally get their money.

1932 Election1932 Election

Franklin D. Roosevelt vs. Herbert Franklin D. Roosevelt vs. Herbert HooverHoover– ““Happy days are here again” Happy days are here again” – Promises a New DealPromises a New Deal

First modern presidential campaignFirst modern presidential campaign– FDR hired publicity specialistFDR hired publicity specialist

Landslide VictoryLandslide Victory– 23 million to 16 million popular vote23 million to 16 million popular vote– 472 to 59 Electoral Votes472 to 59 Electoral Votes

Blue: RooseveltRed:Hoover

FDR FDR Born Wealthy, New Born Wealthy, New

YorkYork Harvard GraduateHarvard Graduate Values of Honesty, Values of Honesty,

hard work and hard work and compassion for poorcompassion for poor

LawyerLawyer Extended warmth Extended warmth

and reassuring and reassuring confidence at every confidence at every public appearancepublic appearance

Aug. 1921, struck Aug. 1921, struck with with Polio VirusPolio Virus

Cold, Paralysis - Cold, Paralysis - Never walked againNever walked again

After recovering After recovering – Served 2 terms as Served 2 terms as

Governor of NYGovernor of NY Created jobs for Created jobs for

unemployedunemployed Promoted Public worksPromoted Public works

Active Government, Active Government, comeback from comeback from Polio make him a Polio make him a hero.hero.

Beginning the Beginning the New DealNew Deal

FDR works to mobilize the federal FDR works to mobilize the federal government to rescue the nationgovernment to rescue the nation form the Great Depression.form the Great Depression.

Create government policies for “the Create government policies for “the forgotten man at the bottom of the forgotten man at the bottom of the economic pyramid”.economic pyramid”.

What do you see in this picture?

11stst Hundred Days Hundred Days

Bank holiday declaredBank holiday declared– Every bank in nation shut downEvery bank in nation shut down

Hundred Days – remarkable period of Hundred Days – remarkable period of lawmakinglawmaking– Laws dealing with banks, industry and Laws dealing with banks, industry and

the economy in general were passed the economy in general were passed quicklyquickly

Very SuccessfulVery Successful

Why So successful?Why So successful?

1.1. Rep. & Dem. eager to help fix the Dep.Rep. & Dem. eager to help fix the Dep.2.2. FDR sought advice from “Brain Trust” – FDR sought advice from “Brain Trust” –

group of intelligent advisers he had group of intelligent advisers he had surrounded himself withsurrounded himself with

3.3. Won American people’s support – Won American people’s support – 13 “Fireside chats” on public radio13 “Fireside chats” on public radio