FDR attempts to rescue the nation from the Great Depression through the culmination of progressive reform known as the New Deal. Chapter 33 – The Great Depression and the New Deal ( )

Election of 1932 Embattled President Hoover renominated by Repubs Dems nominate Gov. of NY FDRoosevelt

Postwar Economy Wartime gov’t control over economy ends Railroads returned to private hands Labor suffers from a hostile Harding admin  Union membership shrinks Veterans make gains  American Legion lobbies for veterans’ benefits…adopts extreme patriotic beliefs

Isolationism returns (sort of) Harding mostly returns to isolationism; rejects the League of Nations US secures oil rights in the Middle East Serious push for disarmament, especially naval  No true progress made; powers still building Kellogg-Briand Pact  62 nations supposedly outlaw war as a policy  Practically useless…defensive war still allowed  US in a false sense of security Fordney-McCumber Tariff passed to compete with cheap European goods  Europe and America suffers from the lack of two-way trade

Scandal Head of the Veterans Bureau caught stealing millions Teapot Dome scandal  Sec of Interior Albert B. Fall has naval oil reserves transferred to his department  Fall accepts bribes to lease oil lands to Big Oil  Undermined faith in government and the courts  “In America, everyone is assumed guilty until proven rich” Atty General Daughtery tried for illegally selling pardons and liquor permits

President Coolidge Harding dies suddenly; VP Calvin “Silent Cal” Coolidge ascends to the presidency Serious, bright, frugal Coolidge another great friend to Big Biz  Supports reducing taxes and debts Americans quickly forget Harding-era scandals…blinded by prosperous times Coolidge easily wins 1924 Election  Dems split on prohibition, urban vs. rural, religion, region, immigration…nominate conservative corporate lawyer Davis  LaFollette runs under a weakened Progressive Party

Foreign debts US turned from debtor to creditor during WWI Wants to be repaid the $10 billion loaned to Allies French and British protest repayment  that they had paid their debts in blood  Tariffs made it impossible to pay back Allies look to German war reparations to pay back  Sends Germany into hyper-inflation Dawes Plan adjusted German reparations and gave loans to struggling Germany…which was then used to pay back the French and British Resentments build over debts

President Hoover Coolidge: I choose not to run!I choose not to run! Popular Sec. of Commerce Herbert Hoover nominated by Republicans  Dems nominate anti-prohibition, brash New Yorker, Catholic Gov. Al Smith  Radio influences the election towards Hoover Hoover another pro-Biz president Hawley-Smoot Tariff intended to help farmers  Highest protective tariff in peacetime history  Increased global econ chaos and US econ isolationism

The Great Depression Stock market crashes in October 1929 after a flurry of sell-offs…Black Tuesday (10/29/1929) $40 billion lost in the stock market Global and extreme domestic depression  12 million jobless by 1932; wages slashed 1000s of bank failures; savings lost…homes lost Breadlines, soup kitchens "Brother, Can You Spare a Dime“ Hoovervilles

Hoover’s response Hoover plagued by his duel tendencies  The humanitarian stressed by the suffering  The rugged individualist eschews gov’t assistance and worries that it will damage our self-reliant national identity  Focuses on trickle-down recovery Hoover decides to help business in the hopes that it would lead to citizen recovery…ummm, 2008? Hoover Dam Reconstruction Finance Corporation continues indirect gov’t loans Outlawed yellow-dog contracts and banned labor injunctions Hoover at least began a process of gov’t action grown by FDR

Bonus Army WWI veterans push for early payment of bonuses Bonus Expeditionary Force marches on D.C. and creates a mass Hooverville Hoover orders army to disperse the Bonus Army Violent evacuation conducted Hoover becomes hated