TOPIC: Hoover vs. FDR Herbert Hoover and the Great Depression On October 24, 1929 – only seven months after Hoover took office – a steep drop in the value of the U.S. stock market sent the economy spiraling downward and signaled the start of the Great Depression. Banks and businesses failed across the country. Nationwide unemployment rates rose from 3 percent in 1929 to 23 percent in 1932. Millions of Americans lost their jobs, homes and savings. Many people were forced to wait in bread lines for food and to live in squalid shantytowns known mockingly as Hoovervilles. Democrats coined many terms based on opinions of Herbert Hoover such as “Hoover blanket" (old newspaper used as blanketing), "Hoover flag" (an empty pocket turned inside out), "Hoover leather" was cardboard used to line a shoe when the sole wore through, and a "Hoover wagon" was an automobile with horses hitched to it because people couldn't afford gasoline for cars. ! What’s a Hooverville?

! Why do you think Hoovers name was used to describe all these things? Hoover’s response to the crisis was constrained by his conservative political philosophy. He believed in a limited role for government and worried that excessive federal intervention posed a threat to capitalism and individualism. He felt that assistance should be handled on a local, voluntary basis. Accordingly, Hoover vetoed several bills that would have provided direct relief to struggling Americans. “Prosperity cannot be restored by raids upon the public Treasury,” he explained in his 1930 State of the Union address. Instead, Hoover believed in Rugged Individualism " people will succeed through their own efforts. ! How did Hoover’s conservative political philosophy impact his efforts to help? The Depression worsened throughout Hoover’s term in office, and critics increasingly portrayed him as indifferent to the suffering of the American people. By the time of the 1932 presidential election, Hoover had become a deeply unpopular–even hated–figure across much of the country. Although his predecessors’ policies undoubtedly contributed to the crisis, which lasted over a decade, Hoover bore much of the blame in the minds of the American people. As the Depression deepened, Hoover failed to recognize the severity of the situation or leverage the power of the federal government to squarely address it.

He’s Conservative: does very little, Laissez-faire = little government involvement

Rugged Individualism: People will succeed through their own efforts

Hoover’s Response

Public Works. He does commission a significant project in the Hoover Dam (Colorado River) – construction project generates jobs

Bonus Army: at the outset of the Depression, WWI veterans marched on Washington to receive bonuses early (they are promised bonuses for serving). Hoover sent army to get rid of them – makes him look bad! Sends the army to put down veterans!

MAIN IDEA: Hoover is not to blame for the depression, but he didn’t do enough to help! By 1932, Hoover was so unpopular that he had no realistic hope of being re-elected, and Governor Franklin D. Roosevelt (1882-1945) of New York won that year’s presidential election in November by a landslide. FDR inspired confidence, hope, optimism, enthusiasm, leadership

FRANKLIN D. ROOSEVELT FDR’S INAUGURAL ADDRESS excerpts I am certain that my fellow Americans expect that on my induction into the Presidency I will address them with a candor and a decision which the present situation of our Nation impels. This is preeminently the time to speak the truth, the whole truth, frankly and boldly. Nor need we shrink from honestly facing conditions in our country today. This great Nation will endure as it has endured, will revive and will prosper. So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself—nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance. In every dark hour of our national life a leadership of frankness and vigor has met with that understanding and support of the people themselves which is essential to victory. I am convinced that you will again give that support to leadership in these critical day. This Nation asks for action, and action now. Our greatest primary task is to put people to work. This is no unsolvable problem if we face it wisely and courageously. It can be accomplished in part by direct recruiting by the Government itself, treating the task as we would treat the emergency of a war, but at the same time, through this employment, accomplishing greatly needed projects to stimulate and reorganize the use of our natural resources.THINK: How does FDR response already sound different from Hoover’s response?

FDR ENTERS OFFICE When accepting the Democratic nomination for President in 1932 Roosevelt famously said, “I pledge you, I pledge myself a new deal for the American people.” His reforms programs collectively would be called the New Deal. Government involvement in the economy and everyday life of this magnitude had never been attempted before. President Hoover’s response to the Great Depression did little to revive the economy. So in 1932, voters elected a new democratic President Franklin Delano Roosevelt (FDR). Almost immediately, FDR and his group of advisors known as the Brain Trust, because many of them were college professors, developed an economic plan whose programs became the backbone of the New Deal. During the first 100 days of his presidency FDR had three main goals. (1) Relief for the homeless. (2) Economic recovery. (3) Reforms to prevent further depression. First Hundred Days:

! FDR summons Congress into a special session ! a flood of New Deal Legislation is passed

21st Amendment (1933)

! repealed Prohibition- the “noble experiment” fails ! too difficult to enforce ! led to growth of organized crime ! you can not legislate the morals of Americans

“Bank holiday”

! FDR closes all banks for four days ! needs to instill confidence in US banks ! only those banks that are financially sound will reopen

“Fireside chats”

! FDR’s informal radio talks explaining his policies to the American people ! Persuade Americans to support his programs ! Restore confidence in the banks

New Deal Legislation (“The 3 R’s”)

! based on the philosophy of government involvement ** o relief: help those who need it o recovery: get the economy going again o reform: change the system so that another depression doesn’t happen again

Watch this video on the New Deal: click here

NEW DEAL PROGRAMS

INITIALS FULL NAME PURPOSE

SEC Securities and Exchange Commission

Regulates and polices the stock market

AAA

Agricultural Adjustment Act

Paid farmers NOT to grow crops – led to an increase in prices

CCC

Civilian Conservation Corps

Gave jobs to men 18 to 25 years old planting trees, fighting forest fires

NLRA

(Wagner Act)

National Labors Relations Act

Guaranteed workers the right to organize unions and collective bargaining

FDIC

Federal Deposit Insurance Corporation

Insured savings accounts in banks approved by the government

SSA

Social Security Administration

Set up a system of pensions for the elderly, unemployed, and people with disabilities

WPA

Works Progress Administration

Gave jobs to men and women to build hospitals, schools, parks, airports; employed artists, writers and musicians

TVA

Tennessee Valley Authority

Built damns to provide cheap electric power to seven Southern States

NRA

National Recovery Act

Suspended anti-trust laws and set standards for production, prices and wages

THINK: What is the main idea of the cartoon? “I have no expectation of making a hit every tie I come to bat. What I seek is the highest possible batting average.” – FDR “The country needs, and unless I mistake its temper, the country demands, bold, persistent experimentation.” –FDR

Women and Minorities and the New Deal ! compared to white males, women, Blacks and Hispanics gained little from the New Deal

o Blacks leave the Republican Party and become New Deal Democrats o unemployment for Blacks was double

! Indian Reorganization Act (1934) o allowed Indians to govern themselves on tribal lands o aimed to restore Indian culture, language, religion and repeals the Dawes Act (1887)

Cultural Trends during the Great Depression

! writers deal with the realities and hardships of the Depression

o The Grapes of Wrath by John Steinbeck o movie industry grows and prospers (“The Golden Age of Hollywood”)

! escapist and big musical productions were popular ! Gone With The Wind ! Disney movies ! Wizard of Oz

DID EVERYONE SUPPORT FDR’S NEW DEAL?

Senator Huey “The Kingfish” Long ! believed FDR was too conservative b. “Share the Wealth” Program ! confiscate family fortunes of more than $5 million and 100% tax on income over $1 million

per year ! provide every family a house, a car and other necessities, an income of $2000 and a college

education

Father Charles E. Coughlin, the “Radio Priest” ! believed FDR was too radical ! had popular radio show appealing to Catholics and the urban lower-middle class ! attacks against bankers, FDR and New Deal planners, and Jews

Dr. Francis E. Townshend ! called for old-age pensions of $200 a month which must be spent in thirty days ! influenced FDR to pass the Social Security Act American Liberty League ! called for protecting the interests of big business ! considered FDR “a traitor to his class”