DO Now: What were the primary causes of the crash

1. Objectives: Examine and evaluate the reaction to the crash DO Now: What were the primary causes of the crash

2. FDR’s New Deal

3. 1929– 3 million unemployed, family income 2300 • 1932-12.5 million (25%), family income 1400 • 683,000 vagrants thrown off trains • People starving in NYC (Cameroon sent aid) • By 1940 1.5 million married women living separate from husband • 200,000 vagrant children wandering the countryside • Mexican Americans and African Americans hit especially hard • 70% Unemployment in Charleston among blacks Depression Stats

4. Hoover believed that it was not the government responsibility to provide welfare. • He believed that giving money to the poor would crush their sense of self-worth and prevent them from reaching their potential as US citizens • Many saw him as callous • Refused request for 25 million to feed farmers but approved 45 million to feed their livestock. • Rejected a request to pay teachers and city workers in Chicago but approved a 90 million dollar loan to help the Central Republic Bank Hoover Opposed Welfare

5. Hawley –Smoot Tariff • Tariffs on farm and industrial goods • (RFC) Reconstruction Finance Corporation– 1932– Established to provide support to banks and corporations that provided public support such as low-cost housing. • Created the largest peacetime deficit in history • He attempted to thwart this by implementing the Revenue Act of 1932 which raised taxes • Home Loan Bank Board– Offered funds to mortgage companies and financial institutions that would produce loans for homebuilding and mortgages Hoovers Reactions Continued

6. WWI veterans were promised a 1000 dollar bonus that would mature in 45. The Vets wanted their money early, hopped on empty train boxcars and headed for Washington. 20000 veterans and their families staged a protest at a camp at Anacostia Flats just southeast of the capital. The Senate turned down their request Troops were sent in led by Douglas MacArthur and George Patton to attack the encampment. Tents and shack were torched and protesters were expelled. 100 injured and 1 infant killed. Hoover and the republicans were voted out of office in 1932 in a landslide victory for the Democrats 472-59 Bonus Army

7. Bonus Army– Attempt #1

8. 1932– Hoover v Roosevelt Phew– That was a close one!

9. Born into a wealthy family Worried about super wealth and rift between rich and poor Harvard, then Colombia Law Rode on shirttails of cousin Theodore Polio at age of 39 changed him into serious determined politician Empathy for suffering FDR

10. Democratic Governor of New York • Demonstrated his ability to initiate reforms • Surrounded himself with reformers and liberals • “Ours must be the party of liberal thought, of planned action, of enlightened international outlook, and of the greatest good for the greatest number of citizens.” Governor of New York

11. New Administration • FDR was extremely progressive when establishing his new cabinet. • Frances Perkins– First woman to be appointed to a cabinet post • Former progressive • Appointed Secretary of Labor • Till 1945 she helped provide jobs • African Americans were given jobs in more than 100 policymaking posts • Mary McLeod Bethune was appointed as director of the Division of Negro Affairs of the National Youth Administration • She advised FDR on programs to help African Americans • She also developed the Federal Council on Negro Affairs by organizing the black officeholders. They would meet to establish new ideas to help Af. Am.

13. Traveled for her husband • Reported to him on country’s condition and the effects of the programs • She often took controversial stances that sometimes negatively impacted FDR • Example– She sat between the whites and blacks in the Jim Crow south during a meeting of the Southern Conference for Human Welfare • Many thought the first lady was suppose to be “lady like” but they eventually got use to her. Eleanor Roosevelt

14. FDR was elected in November but was not inaugurated until March (This was normal) Hoover could not get anything done because he did not have support anymore (Lame Duck) As a result– “Lame Duck” Amendment (20th) that moved inauguration to January 20th Nevertheless, FDR needed to wait till March Lame Duck Amendment

15. 2nd Bonus Army march (a different reaction) • Roosevelt offered a spot to camp • Eleanor (1st lady) paid a visit to vets Immediate “Fireside Chats” to help restore hope A “New Deal” – promises of “bold, persistent experimentation” A New Hope

16. Between March and June Roosevelt aggressively sought to enact legislation that would provide relief, stimulate the economy and provide jobs • March-June of 1933- 15 pieces of legislation • Bank Holiday=first order of business --an order to all banks to close for 4 days. • He then pushed through congress the Emergency Banking Act (EBA) --inspected the financial health of all the banks • Banks were found healthy which reassured Americans • This was followed by the Economy Act (EA) which was established to balance the budget First 100 days

17. FDR also passed the Glass-Steagall Banking Act • Federal Deposit Insurance Corporation (FDIC) to insure deposits • Faith in the banking system began to rise • Results---More deposits=More loans=More jobs=More money=More deposits More measures

18. Federal Securities Act passed in May of 1933 required to provide financial information if they were traded publicly Securities and Exchange Commission (SEC)followed which regulated the sale of stock on margin July of 1933 FDR dropped the gold standard which increased money supply =inflation =lower value of dollar =more exports =higher farm good prices Still More Legislation

19. What was the “New Deal” Do Now

20. Federal Emergency Relief Administration (FERA)– support agencies that provide support Also provided a great deal of money to public works programs– Government funded projects to build bridges, buildings, sidewalks, dams, etc. Still More Relief

21. Civil Works Administration (CWA) established to build roads, airports, etc.= 4 million employed • The Civilian Conservation Corps (CCC)FDR’s favorite program established in March of 1933. Put 2.5 million unmarried men to work in parks, beaches, forests, etc. Earned $30 per month but provided food, healthcare and camps to live in. • Eleanor worked to establish a section of the CCC for women as well CWA and the CCC

22. National Industrial Recovery Act (NIRA) • NRA National Recovery Administration to help stabilize the economy • Established codes to regulate wages, restrain competition, regulate prices, working conditions and production. Also established a minimum wage • Public Works Administration (PWA) FDR Keeps Going

24. Indian Reorganization Act 1934= Part of the public works programs • Ended the sale of tribal lands that began under the Dawes Act of 1887 • Home Owners’ Loan Corporation (HOLC)– Refinanced mortgages to make them more manageable to pay off • June 1933 to June 1936 more than 1 million low-interest loans …and going

25. National Housing Act of 1934 established the Federal Housing Administration (FHA) which was established to improve housing conditions, insure mortgages and stabilize the real estate market. • Agricultural Adjustment Administration (AAA) • paying subsidies for the reduction of certain crop production. • Farmers plowed under perfectly good crops which angered Americans …and going…

26. Drought and misuse of farmland led to Dust Bowl Government responded by establishing SCS (Soil Conservation Service) to push more responsible farming methods (crop rotation, terracing and building barriers) More Problems

27. Agencies Cont. • Works Progress Administration (WPA) provided work for more that 8 million Americans. • The National Youth Administration within the WPA did the same for 16-25 year-olds • AAA (Ag)– Ag. Adjustment Admin. Failed many farm workers because the farms stopped producing • FSA– Farm Security Administration established to loan more than 1 billion to farmers to set up camps for migrant workers.

28. Tennessee Valley Authority (TVA) • was created in 1933 to create jobs in the Tennessee River Valley. • Operated in Tennessee, Mississippi, Alabama, Georgia and North Carolina • Jobs focused on power generation, flood reduction and local industrial development …and going…

29. TVA

30. Grand Coulee Dam and Boulder Dam (Hoover)

31. Focused on the ordinary Americans. • It included more social welfare • business regulations • union support • higher taxes on the rich The 2nd New Deal Gets Underway

32. More Legislation • (REA) Rural Electrification Administration– Gave money to farm cooperatives and electric companies to build power plants and extend lines • 1930—10% • 1934—25% • Eventually– 98% LABOR • NIRA • Wagner Act– Legalized collective bargaining and closed shops (workplaces only open to union members). Also outlawed spying and blacklisting • National Labor Relations Board (NLRB )established to enforce the provisions • Fair Labor Standards Act– No child labor and minimum wage.

33. Social Security System established to provide financial security to people who needed it. • Pensions-- Regular payments to workers or spouses over 65. • Unemployment Insurance– those employing 8+ paid tax to fund this program that would provide money for those who lost their jobs • Aid for children, blind and disabled Social Security