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• (R) Herbert Hoover– Food Administration WWI

– Secretary of Commerce

• (D) Al Smith (corner)

– Governor of New York

– 1st Irish Catholic to run for White House

• Advantage?– Republican prosperity

in the 1920s ensure easy victory for Hoover

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The Good Times to Hard Times

• Industries in decline, Farmers in decline

• Easy Credit - Borrowing on Margin, Limited gains for Workers

• Uneven distribution of wealth

• Reduced Int’l Trade, Int’l debt structure

• Credit Structure

AND….The Stock Market Crash

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Industries in Trouble

• Railroads• Coal • Steel• textiles• Auto industry declined

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Farmers in Distress

• Huge Demand for crops drops after WWI = lower prices

• High debt• McGary-Haughlin Bill

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Mixed Results for Workers

• Wages rose during 1920s, but so did unemployment

• Assembly line and other mechanized equipment was replacing skilled laborers, and lower pay was given

• As a result of assembly line, factories overproduced more than people could afford to buy

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Trouble in the 1920s

Easy Credit-Living beyond means-So many new products-Credit cards

Under consumption-Prices rising faster than

salaries-Cut back on buying

thingsUnequal Wealth-Top 1% rose 75%-9% increase everyone else-Lower taxes for rich – trickle down

Risky Stock Purchases-Speculation

-Buying on Margin-If stocks drops – uh oh!

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Causes of the Depression

Fewer goods are sold.

Demanddrops.

In order to stay in businesscompanies cut

wages

People lose theirconfidence &

start saving their money

Demanddrops even

further.

Companies are forced to cut costs

by laying people off

Even more peopleLose their confidenceAnd spend less money

People lose their jobs.

The Spiral Of

Depression

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Stock Market Crash of 1929

• The Dow Jones Industrial Average plummeted on October 29, 1929.

• $14 billion was lost in one day.

• $30 billion lost in one month.

• Unofficial start of the Great Depression.

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It gets worse! • Bank Failures

– Panic ensues– Rush to withdraw $– Over 5500 Banks close

• Worldwide Depression– High Protective tariffs

were passed to protect US industry

– Hurt international trade bc no vice versa trade

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Herbert Hoover’s Actions

Against Direct Federal Assistance

Rugged Individualism

Hard work, sacrifice, self-reliance

LocalismLocal & state gov’ts

role to help poor

VoluntarismPrivate charities

Would see people through

Difficult times

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Government Aid

1) Boulder Dam, a.k.a. “Hoover Dam” built in Colorado gave thousands of American men jobs between 1931-1936

http://www.usbr.gov/lc/hooverdam/

2) Proposed an international stop on war repayments and debt

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But Not Enough!

3) Reconstruction Finance Corp: gave indirect aid to fund critical businesses like banks, railroads, local gov’t to fund public work projects

4) Federal Home Loan Bank Act- Gov’t increased $ to banks so they could give out more loans for home mortgages, etc.

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• WW I vets marched on Washington DC.

• Demanded the bonus that was due in 1945 be paid presently.

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Bonus Army in DC…

• Congress refused their demands.• Gen. MacArthur broke up the marchers

and had their shanty town burned to the ground.

• Damaged Hoover’s image even further and depression was getting worse

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HooverFDR

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What were we thinking?What were we thinking?

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Key Quotes: FDR’s Inauguration Speech

This Nation asks for action, and action now. Our

greatest primary task is to put people to work. I shall

ask Congress for broad executive power to wage

was against the emergency.

Link to:•Text of Speech

•Video

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FDR and the New Deal

• During the presidential campaign of 1932, FDR promised Americans a NEW DEAL.

• This would be his program to get America back on its feet.

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1. Relief Help people right away

2. Recovery Get the US out of the

Depression

3. Reform Make sure another

depression does not happen

Goals of New Deal Program

The First One Hundred Days• Emergency Banking Act

– Declared a 4 day national banking holiday and closed all banks so government could checked to make sure they are healthy enough to re-open

– Found 2/3 of banks were safe and re-opened them

– Restored American’s faith in banks, deposits exceeded withdrawals

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• Series of radio addresses by FDR

• 30 total between 1933 to 1944

• FDR used these to calm American people down.

• CLICK on the radio to link to hear the 1st chat on the Bank Crisis

Regulating Bank & Finance

• FDIC– Guaranteed investor’s

deposits up to $5000– Today it is up to

$250,000

• Securities and Exchange Commission– Regulates the stock

market– Act requires full

disclosure of all stocks being sold

– Can regulate the amount of stock bought on margin

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New Deal: Relief• Federal Emergency Relief

Association (FERA)• Civil Works Administration

(CWA)• Public Works Administration

(PWA)• Civilian Conservation Corps

(CCC)• Farm Credit Association (FCA)• Homeowners Loan Corporation

(HOLC)

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New Deal: Recovery• Works Progress

Administration (WPA)• National Recovery

Administration (NRA)• Agricultural Adjustment

Act (AAA)• National Youth

Administration (NYA)• Federal Housing Act

(FHA)

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New Deal: Reform• Federal Deposit

Insurance Company (FDIC)

• Securities and Exchange Commission (SEC)

• Wagner Act (NLRB)• Tennessee Valley

Authority (TVA)• Social Security

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Reversing the Spiral of Depression

Government Spending $

Alphabet Agencies

More Jobs

More Spending

Demand for goods increases

More goods have to be produced

More people withJobs = more pay $

More Spending

Demand for goods increases

More goods have to be produced

More Jobs

More Pay = More Taxes

Cycle of

Prosperity!

Democrats called this Process

‘Pump Priming’

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TheAmerican

Family

Women

RuralAmericans

African Americans

AndOther

minorities

Suffering During

The Depression

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Men in the Streets

• In cities across the country people:– lost their jobs– Were evicted from their

houses– Ended up living on the

street.

• Hoboes• Shantytowns• soup kitchens and

bread lines appeared

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People waiting in line for bread and soup and also living out of their car.

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Women Struggle to Survive

• Women’s role in home• But, many began working

OUTSIDE home• FDR’s wife – Eleanor

Roosevelt championed women’s rights

• Francis Perkins – 1st female cabinet member

• Discrimination – paid less, harassment, 1st fired, limited jobs

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African American and the Depression

• 1932, 1936---end of black support for Republican party ---switch to Democrat

• FDR record on civil rights is mixed!– Some New Deal programs excluded blacks– NYA ad WPA was colorblind

• Did appoint more than 100 AA to gov’t positions

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The Black Cabinet“high-ranking appointeesWho advised FDR onAfrican American issues

A. Philip Randolph- Organized the 1st

black union- Brotherhood of

Sleep Car Porters- Convinced FDR to

ban discrimination in defense industry during WWII

Mary M. Bethune-Top ranking AA in Government-Educator-Civil rights issues

William Hastie- 1st African American federal judge

http://www.youtube.com/watch?v=XF9Quk0QhSE

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* Worst man-made ecological disaster in US History, lasted over 10 years

• Drought conditions and “over plowing” wheat led to soil being “blown away.”

• Black blizzards --- dust storms, soil being blown away

• Okies migrated to CA in search of work (25%)• Many migrant Mexican farm workers faced

discrimination; were deported back to Mexico

• http://www.pbs.org/kenburns/dustbowl/

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The ManyCritics of

FDR’s New Deal

53

FDR and the Supreme Court

54

Court Packing….• The Supreme Court struck

down several New Deal laws as unconstitutional.

• FDR wanted to increase the size of the court from 9 to 15.– Would appoint justices who

were pro-New Deal

• Congress did not agree with FDR.

• This hurt FDR’s image.

55

Charles Coughlin• FDR had NOT done

enough….

• Fr. Coughlin felt that FDR did not take on the powerful bankers in the United States.

• Used the radio to blast FDR and became known as the “Radio Priest”.

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Dr. Francis Townshend

• FDR was NOT doing enough for old people.

• Proposed a $200 a month pension to everyone over 60.

• This was good for (2) reasons:– $$ to boost economy– Open a job up for a

younger American

57

Huey Long• FDR was NOT doing

enough for the poor.• Long pushed his “Share

Our Wealth” program.• Take all income over

$1,000,000 to give:– House– Car– Annual Salary– For all Americans

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Liberty League• FDR had gone TO FAR

with the New Deal.

• Interfering with business and people’s lives.

• Government was taking away freedoms from Americans.

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Escapism& Fantasy

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• October 30, 1938• Orson Wells performed

HG Wells classic over the radio.– Made Wells famous

• Caused a panic because people thought Martians were invading– Link to listen to the radio

broadcast.

62

• Famous painting entitled “American Gothic”.

• Best known for his paintings depicting the rural American Midwest.

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• Folk singer during the Depression

• His personal and musical styles were deeply influenced by his childhood in rural Oklahoma during the Great Depression years.

• This Land is Your Land – famous song

• CLICK HERE to listen to song on YouTube

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• Classical novel written by John Steinbeck in 1939.

• Focuses on a poor family of sharecroppers :– Driven from their home by

the drought– They head to California

looking for a better life

Dorothea Lange

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Social Security Act of 1935

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How is Social Security funded?

Social SecurityTrust Fund

Workers Employers

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Social Security

UnemploymentInsurance

Old AgePension

Dependent Families

+Disabled

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What will end the Great Depression?

• America’s entry into World War II

Effects of Great Depression

1. Differing views on the success• Conservatives: creating too big of a gov’t, welfare

state• Liberals: gov’ts responsibility to help all, raise

taxes if it will help all

2. Deficit Spending Increase

3. Protecting American Workers

4. Safe Banking and Finance

5. Programs build America

6. Americans get confidence back