History 17C The American People, World War I to the Present

The Great Depression and the “First New Deal”

Herbert Hoover entered presidency in early 1929 with stellar reputation and high expectations Themes

Before year was out, nation had been plunged into economic crisis that would destroy Hoover’s presidency and set stage for major political upheaval Themes

The Great Depression was rooted in the maldistribution of wealth in the United States

A very small number of people had too much money

... and a very large number had too little

The people with too little money did not have sufficient purchasing power to buy all the goods and services that were being produced

The wealthy, in effect, lending to the less well-off Credit Buying in the 1920s

Wall Street in the 1920s

October 1929

The Stock Market Crash left private investors unable, or unwilling, to keep investing in the US economy, resulting in massive business failures and job losses

Devastating impact of Great Depression

Worker and farmer militancy

President Herbert Hoover worked tirelessly to address crisis, but was hampered by own preference for limited government and voluntary measures by private sector

1932—Hoover created Reconstruction Finance Corporation (RFC), which extended federal govt loans to private corporations; too little too late

“Hooverville”

“Hoover Wagon”

“Hoover Blanket”

The Bonus Army, 1932

“Brother, Can You Spare a Dime?” 1932

They used to tell me I was building a dream And so I followed the mob When there was earth to plow or guns to bear I was always there right on the job They used to tell me I was building a dream With peace and glory ahead Why should I be standing in line Just waiting for bread?

“Brother, Can You Spare a Dime?” 1932 They used to tell me I was building a dream And so I followed the mob When there was earth to plow or guns to bear I was always there right on the job They used to tell me I was building a dream With peace and glory ahead Why should I be standing in line Just waiting for bread?

“Brother, Can You Spare a Dime?” 1932 Once I built a railroad, made it run Made it race against time Once I built a railroad, now it’s done Brother, can you spare a dime? Once I built a tower to the sun Brick and rivet and lime Once I built a tower, now it’s done Brother, can you spare a dime?

“Brother, Can You Spare a Dime?” 1932 Once I built a railroad, made it run Made it race against time Once I built a railroad, now it’s done Brother, can you spare a dime? Once I built a tower to the sun Brick and rivet and lime Once I built a tower, now it’s done Brother, can you spare a dime?

“Brother, Can You Spare a Dime?” 1932 Once in khaki suits, gee we looked swell Full of that Yankee Doodle Dum Half a million boots went slogging through hell And I was the kid with the drum Say, don’t you remember, they called me Al It was Al all the time Say, don’t you remember, I’m your pal Buddy, can you spare a dime?

“Brother, Can You Spare a Dime?” 1932 Once in khaki suits, gee we looked swell Full of that Yankee Doodle Dum Half a million boots went slogging through hell And I was the kid with the drum Say, don’t you remember, they called me Al It was Al all the time Say, don’t you remember, I’m your pal Buddy, can you spare a dime?

Spring-Summer 1932— groups of WWI veterans began marching to Washington, DC, to demand early payment of military bonus The Bonus Army, 1932

<—Anacostia

General Douglas MacArthur and his aide, Major Dwight D. Eisenhower

Hoover’s mishandling of the Bonus March helped to ensure his defeat to Franklin D. Roosevelt in the 1932 presidential election HooverRoosevelt

Franklin D. Roosevelt,

FDR Scion of a wealthy Dutch-American family

FDR Idolized Theodore Roosevelt, his distant relative

New York State Assemblyman, Assistant Secretary of the Navy, Governor of New York, Vice President, 1901 President, TR

New York State Senator, Assistant Secretary of the Navy, Democratic Candidate for Vice President, 1920 Governor of New York, President, FDR

FDR & Polio

Eleanor Roosevelt

Hoover and FDR riding together to FDR’s inaugural ceremony, March 1933

“First New Deal,” 1933 “Second New Deal,” 1935

Main Goals of “First New Deal” Dispensing Relief Creating Jobs Stabilizing the Economy

Dispensing Relief Federal Emergency Relief Agency (FERA)

Public Works Administration (PWA Tennessee Valley Authority (TVA) Civilian Conservation Corps (CCC) Creating Jobs

National Recovery Administration (NRA) Stabilizing the Economy

NRA administrator Hugh S. Johnson

NRA Parade in New York City, 1933

Agricultural Adjustment Act (AAA) Stabilizing the Economy

In South, sharecroppers and tenant farmers (black and white) saw few AAA benefits, which mostly went to white landlords

John Maynard Keynes and “Keynesianism” A road not taken:

“That’s All, Folks!”