T H E H O OV E R Y E A R S

THE DEPRESSION

PRE CRASH

• US is experiencing prosperity• Rising GDP• Wages: Up• Hours: Down• Industry was moving

ELECTION OF 1928

• Hoover Wins!• Extends hold of

Republicans• Economists• Helped Europe out

of Post-War food problems

• Promises Prosperity for “Decades to come”

THE CRASH• Thurs. Oct. 24, 1929• Market take a dip• Recover by Friday• Monday slow but moving

steadily• Tues. Oct. 29, 1929• Market starts slow then

dives• Frantic buyer begin to

sell• Stock Market forced to

close• Damage is done

THE NEXT YEAR

• Banks begin to fail: Ripple effect• Call in loans• People out of work• Can’t pay loans

• Banks begin foreclosures • Hit Farmers hard

PAIN OF POOR

• Cities and churches open bread lines• Thousands of men

and women seek help• Food• Shelter• Work

HOOVER AND THE DEPRESSION

• Lowers income taxes• Not much help

because already low• Meets with business

leaders• Agree to keep wages

at current levels• Refuses welfare

programs• Believes people won’t

work

RECONSTRUCTION FINANCE CORPORATION

• Set up to make loans to businesses, banks, etc• Idea was to put

money into system to get it moving• Opposite effect• Beauracracy • Corruption• Most money was

never even loaned out

HAWLEY-SMOOT TARIFF ACT

• Hoover signs act• Plan to raise tariffs

to help businesses• The damage• Europe raises their

tariffs• Farmers are crushed• Helps the decline of

US Industry

HOOVER’S SHAME

• Many Americans begin to blame Hoover• Not doing enough• Looking out for

business and the rich• Hoover becomes

the but of many jokes

F D R ’ S ATT E M P T T O E N D T H E D E P R E S S I O N

THE NEW DEAL

HERBERT HOOVER• A economist, not a politician• 1929-1930• Depression felt by farmers

and poor• 1930-1931• Bank closures begins to affect

all• Unemployment at 14%• 13 million out of work• Industry at a stand still

• Haley-Smoot Tariff• Increased tariffs• Trading partners do same• More damage than good

1932 ELECTION

• Republican: Hoover• Democrat:

Roosevelt• Landslide victory• Roosevelt wins

nearly every state• Promises America a

“New Deal”

WHO IS ROOSEVELT

UNTOLD ROOSEVELT

100 DAYS

• Will be one of the busiest and most productive in Congressional History• “Bank Holiday”• Banks forced to close• Restructure• Can not open unless

they have funds• Those that don’t will

remain closed

NEW DEAL I

• Congress passes sweeping legislation• Alphabet Soup • CCC, WPA, NIRA, FERA,

NYA, AAA, TVA, NRA• 21st Amendment• Repeals prohibition

• Tax increases on wealthy• Redistribution of wealth

• Union assistance

AGRICULTURAL ADJUSTMENT ADMINISTRATION

• AAA• Pay farmers not to

grow• Increase prices• Lower surpluses

• Tenant/Sharecroppers• Monies went to owners

• Supposed to be shared with “renters”

• Was not the case• Ruled unconstitutional

by Supreme Court in 1936

CIVILIAN CONSERVATION CORPS

• CCC “Tree Army”• Employed 18-25 yr. olds• Get them off the streets• 300,000 max enrolled• 2.5 million over the span of

the program• $30• $25 to be sent home

• Work• Building canals• Cleaning national forests• Planting trees• Making trails

WORKS PROGRESS ADMINISTRATION

• WPA• Carried out public

works projects• Employed millions• Kept culture alive• Writing• Painting• Plays• History

• Slave narratives• Native American art and

history• Music

NATIONAL RECOVERY ADMINISTRATION

• Created through the National Industrial Recovery Act (NIRA)• Supported Unionization• Collective bargaining

• Minimum wages• Minimum hours• Encourage competition• Break monopolies

• Supreme Court rules NRA unconstitutional in 1936

TENNESSEE VALLEY AUTHORITY

• TVA• Hydroelectrcity• Meant to bring

employment and electricity to rural areas

• Gov’t run not private• Bring the South out of

Agrarian society and into Industrialized society

• Also in mid west and northern Pacific

THE DUST BOWL

• 1930-36• Affected mid west• Massive dust storms• Many forced to move

• Okies • Those coming from

Oklahoma, but encompassed all

• California• Citrus farming

• The Grapes of Wrath by John Steinbeck

DOROTHEA LANGE

• WPA member• Captured Images of

the Dust Bowl and Depression

NEW DEAL I ACCOMPLISHMENTS• Employment

• Unemployment dropped to 12%• 5 million people put to work• Industry did start to come back

• Unions• Large support gave them power

• Social• Kept kids of streets• Cleaned many areas• Brought electricity to rural

communities• But not enough

• Unemployment still high• Bread lines still long• No hope in sight for many

especially very poor and minorities

1936 ELECTION

• Republican: Alf Landon• Democrat: FDR• FDR wins by a

landslide• New Deal• Other guy was weak

NEW DEAL II

• President has a lot of political clout• Will attempt to

restructure America economically, politically, and socially

SOCIALLY: SOCIAL SECURITY ACT• Francis Townsend• Pay seniors $200 a month

not to work• Get them off payrolls• Too expensive

• Social Security Act of 1935• People pay into a savings

via a tax• When they retire they are

paid based on what they contributed

• Still survives today

SOCIALLY: AFRICAN-AMERICANS• Jim Crow South• Very tough• Sharecropping and servants

only real income• Racist North• Though more freedoms,

racism still persisted• FDR• Put more African-Americans to

work• Enacted measures to protect

sharecroppers• Eleanor an advocate• Black vote will forever shift

from Republican to Democrat

POLITICALLY: COURT BATTLES

• AAA and NRA challenged• Unconstitutional• Tax

• Supreme Court rules against both• They are dead

• Roosevelt upset

POLITICALLY: COURT PACKING• Supreme Court rules

against minimum wage laws• West Coast Hotel Co. v.

Parrish• Court Procedures Reform

Bill• Add six new justices to the

9 member Court• Make life easier for the old

men• Reality: More justices to rule in

his favor• Bill Fails

ECONOMICALLY: WAR ON CORPORATE AMERICA

• Roosevelt attempts to limit the power of corporations and wealthy• Higher taxes• Union assistance• Wage and hour laws• Corporate taxes• Stiffer anti trust laws• SEC: Securities

Exchange Commission• Oversee stock market

CHALLENGES

• Huey “The Kingfish” Long• Louisiana Governor and

Senator• Loud, aggressive, and

powerful• “Share the Wealth”• Redistribution of wealth

• Didn’t really believe in it• Could have really

challenged FDR in 1936• Assassinated Sept. 10,

1935

CHALLENGES: FARTHER CHARLES COUGHLIN

• Michigan Radio Host• Gains a great deal of

support from rural and farmers• Starts Union for

Social Justice Party• Criticizes FDR• Anti-Semitic views• Hitler rise and word of

Jewish atrocities will end his career

NEW DEAL RETROSPECTIVE• Did it work? Yes and No• Yes:• Put people to work• Enhanced the role of women

and minorities• Did change America politically,

socially, and economically• No:• Unemployment never dropped

below 12%• GDP remained low• Still mass unemployment• Many programs were killed or

ended before any real success could be seen