Chapter 21 Hoover Gets the Blame FDR and the New Deal Worst of Times, Best of Times

Hoover Referred to the economic downturn as a “depression” Causes of Great Depression Complex

Causes Consumer debt Decreased demand for industrial production Increased unemployment

Blame Businessmen Federal government intervention Federal government failure to intervene International economic situation

Blame Much of the blame fell to Herbert Hoover

Efforts Optimism Public works Revenue Act Calls for cooperation

Efforts Federal Farm Board PECE POUR National Credit Corporation

Efforts Money to state governments for relief

Government Work relief Desire to have balanced budget RFC Smoot-Hawley Tariff

Demands By 1932: GNP had dropped more than half Over 5,000 banks failed Businesses closed Evictions

Demands Bonus Army Wanted early payment of a bonus promised to them later Not supported in Congress

Demands Bonus Army Forcibly evicted from DC McArthur Hoover took responsibility

1932 Hoover renominated by Republicans Franklin Roosevelt nominated by Democrats Governor of NY

1932 Traditions or innovations? FDR avoided explaining his plans “New Deal” FDR wins election by large margin

1932 Hoover still had four months left FDR would not cooperate Banking crisis

The New Deal Congress called into special session The “bank holiday” No exports of gold Off the gold standard

The New Deal The “Hundred Days” “Brain Trust” “Fireside chats” Congress cooperated with FDR’s agenda

The New Deal Relief, recovery, reform Emergency Banking Act CCC PWA WPA

The New Deal AAA NIRA NRA NIRA and AAA declared unconstitutional

The New Deal FDIC TVA Social Security Act REA

The New Deal Opposition from Right Great expense, debt Greater government regulation Not bringing recovery

The New Deal Opposition from Right Supreme Court struck down NIRA, AAA

The New Deal Opposition from Left Huey Long “Share Our Wealth” Assassinated 1935

The New Deal Opposition from Left Francis Townsend Pensions for elderly Charles Coughlin “Social justice”

The New Deal Court-packing plan Very unpopular Failed in Congress Court turned in FDR’s direction anyway

1936 Republicans had just one viable candidate Alf Landon Governor of KS Literacy Digest poll

1936 FDR won every state except ME, VT

The New Deal Economy took another downturn in 1937 Labor unions gaining strength

Unions John L. Lewis United Mine Workers AFL Congress of Industrial Organizations (CIO)

Unions CIO sit-down strikes at rubber plants in Ohio Violence Property rights

Unions Sit-down strikes outlawed by Court AFL and CIO eventually reunite

Depression Families suffered “Bread lines” Many applied for relief Homelessness

Depression Race Half of African- Americans unemployed Many sharecroppers move to North, West

Depression Black Americans begin voting Democrat in large numbers Hispanics

The Good Times Amusements Gone With the Wind Hollywood films Radio War of the Worlds

The Good Times Diversions Kidnapping of the Lindbergh baby Criminal activities Amelia Earhart Other air disasters

The Good Times Diversions New York World’s Fair “World of Tomorrow”