The Great Depression & The New Deal

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Presentation transcript:

The Great Depression & The New Deal PART 1

Watched the following video for most of the background information: https://www.youtube.com/watch?v=BK-UL5tqz-k

Hoover’s Response to the Great Depression Congress passed the Reconstruction Finance Corporation RFC employed trickle-down economics The RFC gave billions of dollars to banks and large businesses. Lend to, and invest in, struggling businesses who would hire workers and thus end the depression. The RFC failed-- businesses did not hire more workers; not enough

Hoover’s Response to the Great Depression One Success of the RFC Construction of Hoover Dam in Nevada Increased electricity and farm land in SW.

Hoover’s Response to the Great Depression Bonus Army– marched on Washington demanding pensions In the summer of 1932, almost 20,000 veterans set up camps and occupied vacant buildings. In July, police tried to evict them and riots erupted.

Hoover’s Response to the Great Depression Bonus Army– disbursed by U.S. Military The eviction of the Bonus Army doomed Hoover’s bid for re-election. Americans were ready for new leadership and a greater role for the government in solving problems. Hoover ordered General Douglas MacArthur to remove the veterans. He used tear gas, cavalry, tanks, and troops with fixed bayonets. Press photos of troops using excessive force angered the American public.

Franklin Delano Roosevelt 1933-1945

Wealthy NY family Harvard graduate Assistant Secretary of the Navy 1920 Democrat

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Contracted polio at age 39 in 1921 His legs were affected and he was mostly in a wheelchair

Governor of NY in 1928

Elected U.S. President 1932 Elected President 4 times Died of cerebral hemorrhage in 1945

100 Days Wins the 1932 election in a landslide “The only thing we have to fear is fear itself.” First “100 days” of FDR’s Presidency 15 new bills passed “New Deal” for America

FDR’S NEW DEAL Based on Keynesian Economics John Maynard Keynes Demand-side economics Use government spending to prime the pump Creates demand and generates economic growth

New Deal Goals Relief: provide relief from bad situations created by the Depression Recovery: provide economic growth Reform: prevent a Depression from occurring again