Hoover’s Reaction to the GD and FDR’s New Deal Programs Subtitle

HERBERT HOOVER BECOMES PRESIDENT 1928 - At first, President Herbert Hoover believed that the Great Depression was just another slow down that would end on its own. - Hoover believed the government should take some action, but not too much - Did not give direct aid

Hoover believed that charities-not government- should give food & shelter to people who were poor or out of work. Relief line waiting for commodities, San Antonio, Texas.

The economy continued to shrink & unemployment continued to go up. Unemployed workers in front of a shack with Christmas tree, East 12th Street, New York City. December 1937.

HOOVERVILLES Many people gave this name to the “Shantytowns” Lange, Dorothea, photographer

Lange, Dorothea, photographer

In the 1920’s elections, the Democrats gained more seats in Congress Still, economic difficulties increased, the country turned against Hoover Rothstein, Arthur, 1915 In the 1920’s elections, the Democrats gained more seats in Congress

Despite the public criticism, Hoover stuck to his principles… Hoover met w/bankers, businessmen,& labor leaders. He asked employers not to fire workers or lower their pay. He asked labor leaders not to ask for higher pay or to strike.

He took some steps to use the government to improve the economy….. Hoover didn’t offer direct aid to the poor, but he did worry about the suffering of the people. He took some steps to use the government to improve the economy…..

Hoover used the Boulder Dam project as a model of how federal government could encourage cooperation b/w private groups Rothstein, Arthur, photographer

HOOVER DAM

Another program tried to raise the prices farmers received for their crops. Federal Farm Board Plowing in Maryland. Brooks, photographer

Hoover also urged bankers to join the National Credit Corporation It gave loans to banks that were in danger of failing.

FEDERAL HOME LOAN ACT Passed by Congress in 1931. This law lowered mortgage rates. Congress hoped that low mortgage rates would help farmers change the terms of their mortgages. This would help protect their farms from foreclosures.

Hoover also created the RECONSTRUCTION FINANCE CORPORATION The RFC provided $ for projects to create jobs

THE BONUS ARMY

In 1932, WWI veterans came to the capital. These veterans had been promised bonuses to make up for their poor wartime pay. Congress was about to vote on a bill to give the vets their bonuses so they wouldn’t have to wait for their $.

Thousands of veterans & their families came to D.C. This so-called BONUS ARMY set up tents to live in near the Capitol building.

Hoover 1st sent the veterans food… Hoover 1st sent the veterans food…. But after the bonus was voted down in Congress, Hoover told the veterans to leave. About 2,000 stayed. Hoover ordered the army to remove them. The sight of U.S. Army troops using tear gas on citizens outraged many people.

Shacks, put up by the Bonus Army on the Anacostia flats, Washington, D Shacks, put up by the Bonus Army on the Anacostia flats, Washington, D.C., burning after the battle with the military, 1932.

FDR and the New Deal

The First 100 Days Administration shepherded 15 major bills through Congress It was the most intense period of lawmaking ever undertaken by Congress

Relief, Recovery, and Reform Efforts Relief‐ to provide Americans with immediate assistance to help them with basic necessities of life, including food, direct monetary payments and employment Recovery‐ A policy or program that has its primary goal to promote growth in the American economy Reform‐ A policy or program that was designed to ensure that effects of the Great Depression did not occur again.

Civilian Conservation Corps (CCC) 1933 This environmental program put 2.5 million unmarried men to work maintaining and restoring, forests, beaches, and parks. Workers earned only $1 a day but received free board and job training. From 1934 to 1937, this program funded similar programs for 8,500 women Taught the men and women of America how to live independently, thus, increasing their self-esteem.

Agricultural Adjustment Administration (AAA) 1933 The AAA tried to raise farm prices Paid farmers not to raise specific crops and animals. Lower production would, in turn, increase prices Farmers killed off certain animals and crops This was declared unconstitutional later on.

National Industrial Recovery Act (NIRA) 1933 Formed in order to help businesses and workers Allowed trade associations to write codes regulating wages, working conditions, production, and prices. Set a minimum wage The codes did little to stop the business cycle It was declared unconstitutional later on.

Federal Deposit Insurance Corp (FDIC) 1934 Formed by Congress to insure bank deposits Insured institutions are required to place signs at their place of business stating that "deposits are backed by the full faith and credit of the United States Government." Since the FDIC insurance on January 1, 1934, no depositor has lost a single cent of insured funds as a result of a failure.

Works Progress Administration (WPA) 1935 Provided work for 8 million Americans and attempted to decrease unemployment. Constructed or repaired schools, hospitals, airfields, and other public works projects During its 8-year history, the WPA built 651,087 miles of highways, roads, and streets; and constructed, repaired, or improved 124,031 bridges, 125,110 public buildings, 8,192 parks, and 853 airport landing fields.

Social Security Act (SSA) 1935 Provided old-age pensions (retirement) for workers, survivors benefits for victims of industrial accidents, unemployment insurance, and aid for dependent mothers and children, the blind and physically disabled. Helped millions of Americans feel more secure