Hoover and the Great Depression

1. Hoover and the Great Depression

2. AP Outline • Depression, 1929-1933 • Wall Street crash • Depression economy • Moods of despair • Agrarian unrest • Bonus march • Hoover-Stimson diplomacy; Japan

3. Hoover Key Terms • Great Depression • Stock Market Crash • Hoover's Response to The Crash • Chain Reaction-Unemployment-Bank Failures • Massive Suffering

4. Causes of the Depression • Uneven Distribution of income • Stock Market Speculation- • Excessive Credit • Buying Stock on Margin • Over Production of Farm Goods

6. Great Depression Suffering

7. Okies and “Hooverville”

10. Hoover’s Response • Hoover’s Initial Reaction: • Conservative Republican • Thought the poor economy would improve… • Just another temporary down turn • Government’s Reaction Made the Depression worse • Idea- Government cuts (spending) expenditures to balance the budget • Raised taxes • Cut spending • Significance-problematic action it took $ out of the economy

11. Hoover Responses • No government interferencein the economy- • “The Dole corrupts society” no government help in relief of unemployment • Volunteerism-private charities should help the needy • People should give to charity • Called bankers to bolster financial market • Called industrialist not to lower wages • “Bank Relief” • (RFC) Reconstruction Finance CorporationHoover did try to help and support banks and corporations by offering loans that would spur the economy. • Public Works- (limited) Hoover Dam • No government deficit spending (he changes his mind in 1932 and begins deficit spending)

12. Veterans of World War I Demonstrate, protest, camp out in Washington DC Hoover orders Army to remove protestors MacArthur and tanks are finally used The “Bonus March”

13. FDR and The “New Deal”

14. New Deal • Franklin D. Roosevelt • Background, ideas • Philosophy of New Deal • 100 Days; "alphabet agencies" • Second New Deal • Critics, left and right • Rise of CIO; labor strikes • Supreme Court fight • Recession of 1938 • American people in the Depression • Social values, women, ethnic groups • Indian Reorganization Act • Mexican American deportation • The racial issues

15. Who is Franklin Delano Roosevelt? • New York, Wealthy Family • Cousin to TR, Harvard Educated • VP Candidate 1920 • 1921 stricken with Polio- wheel chair • Under Secretary of the Navy, Wilson • Governor of New York 1928 thru 32 • Huge personality • Energetic • Self confident • Charismatic • Consummate politician • Father Figure and Savior

16. Democratic Nomination • Gains nomination by bringing diverse groups together- • Steals the Nomination from Al Smith • # 1 factor in the election is ECONOMY

17. Election of 1932 • FDR believed in Progressive ideals • The Government serves the people • Truly sympathetic to the disadvantaged • Government needs to reform business

18. FDR pledged a new deal for America • "I pledge you, I pledge myself, to a new deal for the American people." FDR Democratic National Convention 1932 • “The Country demands bold persistent experimentation.” FDR • But never said what it would be or how it would work… • Inaugural Speech

20. Election of FDR

21. “A New Deal For the American People”

22. Election Map of 1932

23. FDR and Democrats win • Immediately Roosevelt calls together experts November –January • The “Brain Trust”- political, business and Intellectuals/Academics

24. The New Deal represents the greatest expansion of Federal power in the history of the country. Created Foundation Social Insurance= Social Security, Unemployment, Aid to Families with Dependent Children Extended Regulation of Economy=regulation of economy= banking, Securities and Exchange Commission Supported the Modern labor movement- labor supports Government intervention in Agriculture Economy Funded Public Works Projects- WPA, WPA Developed Regions of the US- TVA Strengthened the Democratic Party 30yrs in power Did not End the Great Depression Overview of FDR Admin

25. FDR Overview • The EXTREME Politician • 4 Terms as President • Democrats Controlled Congress Too • Extremely Popular • Many political rivals-on the left and the right

26. What is the New Deal?The 3-Rs • The “Brain Trust” created a series of programs created by the Federal Government that provided for changes to: • Aid economic development (Recovery) • Help citizens (Relief) • Prevent another depression from occurring again. (Reform)

27. Three “R”s • Relief for the people out of work • Recovery for business and economy • Reform of American economic institutions • Laws to prevent another economic collapse

28. First 100 Days • Inaugural speech March 4, 1933 • “The only thing we have to fear is fear itself.”Link to speech. • Offered the American public hope! • Emergency Session of Congress to approve and enact new laws to aid the economy. First item: Bank Holiday-Emergency Banking Act

29. John Maynard Keynes • Keynesian Economics • Father of deficit spending • Advocated the use of Government spending to mitigate the problems of Capitalism in an effort to spur and stabilize the economy • See reading

30. Mass Media: RADIO • “Fireside Chats” “Link to Fireside Chat” • 60 million people • Offer confidence and hope • People begin to trust and look to him for help

31. Repeal Prohibition: 21st Amendment Revenue Act- Tax Alcohol Agricultural Adjustment Act (AAA) (NRA) National Recovery Administration (NIRA) National Industrial Recovery Act (PWA) Public Works Administration (WPA) Works Progress Administration (FCC) Federal Communications Commission (TVA) Tennessee Valley Authority (FERA) Federal Emergency Relief Administration Harry Hopkins- leader (CCC) Civilian Conservation Corps FHA Federal Housing Administration Currency, Banking and Stock Market Reforms New Deal Legislation (100 Days)

32. Social Insurance- Huge Change • Federal Government now Steps in to insure the social welfare of citizens at a minimum level. • SS Social Security Act 1935- old age pension • AFDC Aid to Families with Dependent Children • Unemployment Insurance • Federal Aid to people with disabilities

33. FDR’s Cabinet

34. Right American Liberty League-big business Raskob Chairman of GM Left Critics of FDR

35. 2nd New Deal • Goals to create more jobs • Security against old age-unemployment, and illness • Improve slums and housing • Social Security-(1935) • Unemployment Insurance • Wagner Act- National Labor Relations Act

36. Labor Rises under the New Deal • After 1933 Union Membership expands- normally this is not the case • NIRA- sec 7 reaffirms rights of labor to organize • Rights of labor to collective bargain • The New Deal allowed for labor protections: • First under the National Recovery Administration-(NRA) • Set minimum wages and prices in effort to create jobs • NRA is found unconstitutional by Supreme Court- • Schechter Poultry vs United States • Supreme Court said Congress could not set prices for goods and strikes down NRA.

37. The New Deal was Pro-Union(Senator)Wagner Act • The National Labor Relations Act gave workers the right to negotiate through unions of their choice. • It also prevented employers from interfering with union activities • Established the National labor Relations Board to oversee union issues • Enforce Labor laws

38. John L. Lewis and the CIO • Charismatic Leader • President of the United Mine Workers • Began as VP of American Federation of Labor • Wanted to include mass production workers in AFL (UNSKILLED WORKERS) • When AFL resists- he forms CIO • Congress of Industrial Organizations

39. Included unskilled workers Auto workers Steel workers Textiles Laundries Tobacco Women & Blacks Allowed More militant than AFL Overall Unions Grow: 1932- 3million Union workers 1937- 8 million union workers 1941- 10 million union workers CIO

40. 1937: UNITED STATES. Republic Steel is owned by Cyrus Eaton, Republic routinely spies on its workers and fires anyone engaging in union activity. The company maintains a stock of weapons including guns, tear gas and clubs at its various plants for use against workers When a walkout begins at Republic's Chicago mill, police enter the plant to drive union organizers out. The strikers then form a picket line in front of the plant's main gate. . Police break the picket line, arresting more than twenty people. As the workers attempt to once again establish their legal picket line, more than two hundred police, many armed with non-regulation clubs and tear gas supplied by Republic Steel, fire over two hundred shots at the workers and then attack with clubs. When the slaughter is over, four workers are dead, six will die later from their injuries and about sixty others are wounded, many seriously. Many of the dead have been shot in the back. The murders will be remembered in the labor movement as the Memorial Day Massacre. Memorial Day Massacre

41. CIO vs. General Motors • GM employed 240,000 workers • Detroit/Flint Michigan area • The first use of “Sit Down Strike” is seen • Workers go to work, peaceful demonstration, refuse to work. • Government sides with labor and no national guard and strike violence

42. GM Gives In • GM gave in to strikers demands • United Auto Workers is recognized • Auto Workers and Steel Workers join the CIO- • 1937- 200,000 Auto Workers • 300,000 steel workers • Membership grows 4 million • Represents- pro-union stance of New Deal • However- some violence still exist in labor disputes- Chrysler, Ford, and Republic steel

44. How does FDR end up with a “friendly” Supreme Court?

45. FDR and the Court • Second Term- 1937 • Economy growing but New Deal still needed • Supreme Court was limiting the effectiveness of programs • They reflected conservative- Right Wing views= pro-business, reduce government interference

46. The Court in 1937 • Older Generation • Had different vision of society • 9 Judges- 7 appointed by Republicans • 80% of Judges in lower Fed courts • Roosevelt was Frustrated: • FDR proposed to add up to six new judges to the Supreme Court and up to 44 judges to lower federal tribunals. His scheme was advertised as court reform.

47. FDR tries to Circumvent the Court • FDR was afraid that the court would continue to limit New Deal reforms- like AAA and National Recovery Administration NRA • Proposal sent to Congress: • Face value- appoint more judges to make courts more efficient • Truth: add more liberal judges to manipulate the process- pro-New Deal judges • FDR is widely criticized