73
Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat, but a Catholic. His Catholicism was a disadvantage.

Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Embed Size (px)

Citation preview

Page 1: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Herbert Hoover

• Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat, but a Catholic. His Catholicism was a disadvantage.

Page 2: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Stock Market Crash of 1929

• The Wall Street Crash of 1929 (October 1929), also known as the Great Crash, and the Stock Market Crash of 1929, was the most devastating stock market crash in the history of the United States. The crash began a 12-year Great Depression that affected all the Western industrialized countries and that did not end in the United States until the US participation in World War II at the end of 1941.

Page 3: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Bank Failures• At the beginning of the 20s, The United States had one bank for

every 1,000 people. • Every small town had a bank or two struggling to take in deposits

and loan out money to farmers and businesses. • As the economic depression deepened in the early 30s, and as

people had less and less money to spend in town, banks began to fail at alarming rates.

• During the 20s, there was an average of 70 banks failing each year nationally.

• After the crash during the first 10 months of 1930, 744 banks failed – 10 times as many.

• In all, 9,000 banks failed during the decade of the 30s. It's estimated that 4,000 banks failed during the one year of 1933 alone. By 1933, depositors saw $140 billion disappear through bank failures.

Page 4: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Stock Market Crash and the Banks.

• There are a couple of things to understand about the crash and the banks.

• The Stock Market crash alone could not completely ruin the American economy. The market crashed farther in 1987 than it did in 1929.

• The problem was the banks had invested the depositors money in the stock market. When the market failed so did the banks.

• The Bank failures are really what caused the Great Depression.

Page 5: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Bull Market

A Bull MarketThis is when the market showing is confidence. prices go up, so market indicators like the NASDAQ go up too.

• Number of shares traded is also high and even the number of companies entering the stock market show that the market is confident. 

• These are bullish characteristics. If there is a run of bullish days then you may hear the market is a bull market.

• Technically a bull market is a rise in value of the market of at least 20%. The huge rise of the Dow and Nasdaq during the tech boom is a good example of a bull market.

Page 6: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Bear Market

• A bear market is the opposite to a bull. • If the markets fall by more than 20% then we

have entered a bear market. • A bear market is a market showing a lack of

confidence. • Prices hover at the same price then go down,

indices fall too and volumes are stagnant. • In a bear market people are waiting for the bulls

to start driving the prices up again.

Page 7: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Margins and Margin Buying

• Margin -

• The face value of a loan minus the value of the pledged collateral.

• Margin Buying -

• A risky technique involving the purchase of securities with borrowed money, using the shares themselves as collateral.

Page 8: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Speculation

• The crash followed a speculative boom that had taken hold in the late 1920s, which had led hundreds of thousands of Americans to invest heavily in the stock market.

• A significant number of them were borrowing money to buy more stocks.

• By August 1929, brokers were routinely lending small investors more than two thirds of the face value of the stocks they were buying.

• Over $8.5 billion was out on loan,more than the entire amount of currency circulating in the U.S. at the time.

Page 9: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Speculation

• Taking large risks, especially with respect to trying to predict the future

• Gambling in assets, in the hopes of making quick, large gains.

• The speculators in the Stock Market drove the prices artificially high to make a profit when they sold.

• This caused the whole market to inflate and make the downfall that much worse.

Page 10: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Predictions

• New York Stock Exchange (NYSE) collapsed in October or 1929.

• However, the days leading up to the 29th there was enormous stock-market upheaval, with panic selling and extremely high levels of trading interspersed with brief periods of recovery.

• the fact that economists were unable to predict it is in itself of great note.

• Some did though, some prominent investors like Joe Kennedy got out before the crash.

• Although some well-known economists, particularly those of the Austrian School, were aware of the situation their warnings went unheeded.

Page 11: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Black Thursday

• October 24, forever called “Black Thursday,” 12,894,650 shares changed hands on the New York Stock Exchange – a record.

• To put this number in perspective, the previous record for trading activity was set on March 12, 1928. On that day, a total of only 3,875,910 shares were traded.

• The market was crashing and the floor of the NYSE was in a state of panic. By noon on Black Thursday, there had been eleven suicides of fairly prominent investors.

Page 12: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Causes – Excessive Investment

• One possible explanation for the severity of the Crash in 1929 is that the preceding period was one of excessive investment—a great economic "boom"—which inevitably led to an equally excessive "bust

Page 13: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Federal Reserve System

• The Federal Reserve System is a government sanctioned private corporation that regulates the US currency and controls banking.

Page 14: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Causes – Federal Reserve

• Some claim that the cause of the Great Depression was the Federal Reserve.

• 1. A significant factor may be inflation. • inflation is defined as money creation, the act of which

tends to manifest itself through the fall in the purchasing power of money (PPM).

• Thus for a given demand for money, an increase in its supply lowers the PPM.

• 2. Some economists say that the Crash was bad, but when the Federal Reserve permitted the "Great Contraction" of the money supply it drove the economy into the worst depression in U.S. history:

Page 15: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Causes - Overproduction

• Overproduction was one of the main reasons for the Wall Street crash.

• During the boom, businesses were overproducing, making more goods than they were selling.

• New manufacturing methods, such as production lines allowed factories to produce more in a shorter amount of time.

• While demand remained high this was good, but in the mid 1920s the demand for goods began to decrease.

Page 16: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Causes - Agricultural

• In the 1920s, the agricultural sector in the United States began to have difficulties.

• Many small farmers were driven out of business because they could not compete in the new economic climate.

• advances in technology increased production including overproduction of foods.

• However, demand for food did not increase at same rate as the increases in supply.

• Therefore, food prices fell and farms were unable to make a profit. Farm workers lost their jobs, increasing unemployment.

Page 17: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Causes - Banks

• Before the Great Depression, the American banking system was characterized by having many small to medium sized banks.

• Thus, there were over 30,000 banks. • As a result, they were in danger of going bankrupt if

there was a run in which many customers wanted to withdraw their deposits.

• The agricultural recession led to problems with rural banks, which had a negative impact on the rest of the financial industry.

• Between 1923 and 1930, 5,000 banks collapsed. This clearly contributed to the economic instability that led to the Crash.

Page 18: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Installment Plans

Page 19: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Installment Plans• The installment method of buying large ticket items with a small

deposit and instalment payment plan was a feature of the 1920's.

• Previously only the wealthy could afford to pay cash for items like pianos, phonographs, radios, fridges, vacuum cleaners, and washing machines.

• Manufacturers realized they could expand their profits if they could grow their markets and so installment selling was introduced.

• The problem is that the money spent on installment payments did not get saved for times of economic problems.

• So, when the Crash and Depression occurred, people did not have the savings to ride it out.

Page 20: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

By 1933, 25% of ALL Americans were unemployed.

Page 21: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,
Page 22: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Soup Kitchens

• The Great Depression divided our country into the "haves" and "have nots."

• Most people found it hard to put food on the table. Folks lucky enough to work often toiled long hours far from home.

• Many more found their "daily bread" on food lines. • Roosevelt's New Deal programs often included meal

components.• 1930s soup kitchens were run/funded by charitable

organizations (religious groups, Ladies Aid Societies, Salvation Army etc.), community service groups, government agencies, companies, and private individuals. They relied on volunteers and donations

Page 23: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

The Dust Bowl• The Dust Bowl was a period

of severe dust storms causing major damage to American prairie from 1930 to 1936

• It was caused by severe drought coupled with decades of extensive farming without crop rotation, fallow fields, cover crops or other techniques to prevent erosion

• Deep plowing of the virgin topsoil of the Great Plains had displaced the natural grasses that normally kept the soil in place and trapped moisture even during periods of drought and high winds.

Page 24: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Movies had to be fantasyReality was too grim

Page 25: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Grant Wood

Page 26: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Thomas Hart Benton

Page 27: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

John Steinbeck

Page 28: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

William Faulkner

Page 29: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Margaret Bourke-White

Page 30: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,
Page 31: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,
Page 32: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Bonus Marchers

• In 1924, Congress authorized a pension for the veterans of WWI to be paid in 1945.

• In 1932 after 3 years of hard times, the veterans marched on Washington to ask that the Bonus be paid early. They did not want anything more than what they had been promised.

• This was an embarrassment for Hoover, who had been maintaining that the Depression did not exist.

Page 33: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Bonus Marchers

• The Marchers set up tent cities according to their unit during the war.

• They brought their wives and children with them.

• Washington D. C. is a media hub and they covered the Bonus March, to Hoover’s embarrassment

Page 34: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Bonus Marchers

• Hoover ordered the head of the Army, General Douglas MacArthur to move the Bonus Marchers across the river to Foggy Bottom, away from the Media.

• Hoover did not know what MacArthur had in mind.

Page 35: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Bonus Marchers

• The marchers thought MacArthur was coming to make a speech.

• They were surprised when the tanks showed up.

• The army attacked the marchers

Page 36: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Bonus Marchers

• The Army shot tear gas into the shanty towns and started to burn them.

• Many were hurt and one child died in the attack.

• This was covered extensively by the press and did more to destroy Hoover’s presidency than anything else.

Page 37: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Reconstruction Finance Corp.

• Hoover was not an uncaring monster. He knew that people were in trouble, but he was a prisoner of his beliefs.

• He believed that government should do nothing to directly aid the poor.

• He formed the Reconstruction Finance Corp. to lend money to Big Banks and Big Corporations that were in trouble.

Page 38: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Hoover and Relief

• Hoover believed that the states and charities should take care of the poor.

• He felt it was unconstitutional for the Federal government to intervene

• He also felt it was bad for the American character.

Page 39: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Deficit Spending

• The primary reason Hoover opposed relief was because the government had been cutting taxes all through the 20’s and now had no money.

• If the government aided the poor, they would have to engage in Deficit Spending or spending more than the government had.

• Hoover was a traditionalist and a rich man that opposed inflation and taxes.

Page 40: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Public Works

• One thing that Hoover did to help was authorize public works.

• Public Works are construction projects like dams and bridges.

• They provided employment for unemployed people.

• This would have worked if Hoover had done it on a large scale (like Roosevelt did later)

• Hoover was so afraid of deficits that the projects were small and only helped a very few.

Page 41: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Foreclosure

• By 1932, 50% of the assets of the American middle class were in foreclosure

• Foreclosure is the public sale of assets to pay for debts.

• This led to widespread homelessness

• More importantly it led to hatred by the people for the government.

Page 42: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Foreclosure

• Most foreclosures came as a result of banks losing their assets in the Crash

• When a bank failed in those days, the people simply lost their money

• One of the first of the reforms of the New Deal was to change this.

Page 43: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Hobos

• One of the results of the Depression was homelessness and drift.

• Many simply gave up and rode the rails or hopped freight trains.

• Hobo villages sprang up all across the country.

Page 44: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Inauguration 1933

Page 45: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Principles of the New Deal

• The new Deal was not one philosophy, but instead, a collection of ideas. These ideas meant that the administration was often divided as to what to do about certain issues

• Some New Dealers wanted the government to almost completely control the economy, some wanted to work with business to reform the economy, some didn’t want the government to intervene except in specific areas

• One idea was held by all of them, the government had to play a bigger role in the economy.

Page 46: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Progressivism and the New Deal

• Almost all of the Brain Trust advisors grew up during the Progressive Era and they believed in the Progressive Reforms.

• Like Progressivism, the New Dealers believed that Laissez Faire capitalism was the cause of the problems of the Depression.

• Unlike the Progressives, the New Dealers wanted extensive government involvement in the economy

Page 47: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Gold Standard• The gold standard is what the US

economy was based on in 1933.• This meant that every dollar in the

US had to be backed up by a dollar’s worth of gold.

• The problem with this is that currency cannot be printed until gold is mined for it.

• The US economy was starved for currency and couldn’t wait.

• FDR took the US off the gold standard and let the economic conditions that existed set the value of currency.

• This is the system we use today

Page 48: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Bank Holidays

• The biggest problem that Roosevelt faced were the bank failures.

• Most of these were caused by bank runs.

• To stop these failures and to let the US economy recover, FDR declared a bank holiday.

Page 49: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

The 100 DaysMarch

• 4 - FDR inaugurated and calls for special session of Congress. “we have nothing to fear but fear itself”

• 5 - Bank Holiday – four days, FDR gets absolute control over export of specie

• 9 - Emergency Banking Relief Act. Banks can reopen only if they prove they are solvent Passed in 40 minutes by the House.

• 12 – first Fireside Chat

• 31 – CCC – young men 18 – 25. Creates federal jobs for young men to keep them in school.

Page 50: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

The 100 Days

April

Nation goes off Gold Standard

Glass Steagall Act limits ability of commercial banks to invest in stock market.

Page 51: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

100 DAYSMay

Federal Emergency Relief Act – state grants for projects

AAA – Agricutural Adjustment Act – paid farmers Not to raise crops so that prices would rise. Committed the government to parity and to subsidizing farm prices

WPA – Works Progress Administration – authorized large government

construction projects to provide jobs

TVA – Tennessee Valley Authority – built a series of dams on the Tennessee River to provide jobs and electricity. Colorado River project comes out of this idea.

Federal Securities Act - creates the SEC, the Security and Exchange Commission to regulate the stock market.

Page 52: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

AAA

• The AAA was designed to help farmers that had been suffering since the 20’s.

• The farmers wanted parity, the idea that they should get the prices they got before the Great Depression started.

• The AAA wanted farm products to be scarce so that the price would rise and farmers would make more money.

• To do this, they paid the farmers to plow under the crops they had already planted. This created scarcity.

• it worked. Prices rose that year.

Page 53: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Harry Hopkins and the WPA

• Harry Hopkins was Roosevelt’s closest advisor and friend.

• The WPA was the most politically sensitive program, so FDR put his best friend in charge. Hopkins proved to be a wonderful administrator.

Page 54: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,
Page 55: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,
Page 56: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

SEC

Page 57: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,
Page 58: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,
Page 59: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

The Opposition Forms

• By 1935/36, the economy had sufficiently recovered enough to even look like a recovery.

• At this time, Roosevelt started to develop very public opponents. The Dupont Family, Father Coughlin, Dr. Townshend and particularly Huey Long of Louisiana.

• Some of these people had legitimate fears about a democracy during what looked like a dictatorship and also about the possible result of deficit spending.

• Others that opposed Roosevelt so vociferously just proved Mark Twain right, again.

Page 60: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

The Opposition Forms

• By 1935/36, the economy had sufficiently recovered enough to even look like a recovery.

• At this time, Roosevelt started to develop very public opponents. The Dupont Family, Father Coughlin, Dr. Townshend and particularly Huey Long of Louisiana.

• Some of these people had legitimate fears about a democracy during what looked like a dictatorship and also about the possible result of deficit spending.

• Others that opposed Roosevelt so vociferously just proved Mark Twain right, again.

Page 61: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

The Difference Between Dogs and Men

If you take a starving dog and feed it, show it mercy and affection and make it healthy again, the dog will not bite you.

This is the primary difference between dogs and men

Page 62: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Huey Long“The Kingfish”

Page 63: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

The Liberty League formed by conservative Democrats to oppose

the New Deal

Page 64: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Father Coughlin

Page 65: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Townsend Plan• Both Huey Long and Father

Coughlin were Right Wing opponents of FDR.

• Dr. Townsend was a Left Wing critic. He didn’t believe that FDR went far enough.

• He called for the government to give a pension to everyone over 60. these people would have to retire and they would have to spend their entire check every month

• He thought this would spark the economy.

• Roosevelt used this idea as the basis for Social Security.

Page 66: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Social Security

• Social Security was originally seen as a form of insurance for people during old age.

• It grew into a larger program with time.;

• Social Security funds were used to get other programs going during the New Deal.

Page 67: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

FDR and Civil Rights

• FDR was a practical politician. He wanted votes wherever he could get them.

• He appealed to Blacks by appointing some to administration positions. These people were called the “Black Cabinet”.

• He also tried to make New Deal programs available to Black people in America.

• Eleanor was a huge help here. She had been Supporting civil rights since she had been a teenager and she pushed FDR in that direction.

Page 68: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

FDR and the Court

• 1936 election gave FDR the largest majority every recorded until Nixon’s 1972 tainted landslide. He was absolutely unbeatable. Hubris, as Thomas says, is a killer.

• This led him take the only political miss step of his life, The Court Pack

Page 69: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Schecter v. US

• A.L.A. Schechter Poultry Corp. v. United States, was a decision by the Supreme Court that invalidated regulations of the poultry industry. this decision declared unconstitutional the National Industrial Recovery Act

Page 70: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

Court Pack

• Schecter was just one of a number of decisions by “those nine old men” that attacked the New Deal.

• FDR knew that he couldn’t get around the rulings so he needed favorable ones.

• To do this, he proposed expanding the court and adding new members that he, of course, would appoint.

• This is the only time that he misjudged his power. It scared the American people and he had to back off.

• Of course by this time the economy was starting to really recover and he had other problems,

• Deficit spending and Hitler.

Page 71: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

The Roosevelt Recession

• FDR was a very wealthy man with a wealthy man’s attitudes toward debt.

• By 1936, deficit spending was 3 billion out of a 9 billion total budget.

• FDR had proposed balanced budgets every year but 1932, within his councils.

• He proposed one in 1936, didn’t get it passed, but did get spending cut.

• The economy immediately tanked.

Page 72: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

End of the New Deal

• By 1939, events in Europe started making more trouble than economic events at home.

• The outbreak of WWII in Europe in 1939 ended the New Deal. There was no need for it to continue. Sales of war material sparked the economy into full employment.

• With US entry into the war in 1941, the Great Depression was over.

Page 73: Herbert Hoover Herbert Hoover was elected in 1928 on the prosperity of the nation and his opposition to alcohol. His opponent was Al Smith, a Democrat,

The Broker State and expansion of Government

• The term “broker state” is often applied to the New Deal’s effect on the US

• The broker state means that the Federal government would serve as a mediator in conflicts between groups within society. This is the opposite of laissez faire economics and is the position of the government today.

• Even the most conservative segments of society want the government to do something about whatever it is that is bothering them. Everyone, in the words of Richard Nixon, is a Keynesian.