“We are closer to the end of poverty than at any point in our history”

The Great Depression Election of 1928 > Hoover and NO GOVT INTERVENTION wins because people had a false notion that everything would remain prosperous Spark-Crash of The Stock Market-10/29/29 – People bought on margin (loans) – Stock prices got so high no one bought – 10/24/29> some selling led to margin calls > – 10/29/29> all selling and no buying> need to pay back loans STOCK MARKET CRASH

The Great Depression Underlying Causes- Mass Production-too many goods produced, not enough demand Credit-too many goods bought that people could not afford, including stocks, On Margin Investing-inexperienced people put too much of their $$ in the Stock Market-risky

Wall Street

Bull vs. Bear Market Market and Economy doing well Market and Economy doing poorly

Hoover’s Response Hoover’s advisors told him to let the depression proceed without intervention Went against advice – Made announcements to restore confidence – Held economic conferences – Spent money on some public works project – Urged business to expand

Hoover’s Response Reconstruction Finance Corporation (RFC) – Loans to banks, railroads, and insurance companies – Was suppose to go to local gov’t for public works but went to private companies – Also too little too late

Bank Runs

Okies

Dorothea Lange

Riding The Rails

Hoovervilles

Hoover Blankets

Buy American Hoover signs the Hawley-Smoot Tariff Increasing Tariffs-Americans buy less foreign goods Foreign nations now had less $$ to pay back war debt to US.

Rugged Individualism

Hoover Dam

Bonus Army

Election of 1932 Franklin Delano Roosevelt > governor of NY – 1 st governor to provide relief for citizens – “I pledge myself to a new deal the American people” – Contest of 2 philosophies: help people vs. let people fix their problems – “This nation asks for action and action now” – “..the only thing we fear is fear itself”

A New Deal

The 3 R’s Relief-Immediate help-$$ Recovery-temporary jobs Reform-permanent programs-Soc. Sec. FDIC These programs would be paid by- Deficit Spending- Spending more than you make People had a renewed confidence in government FDR was seen as taking action!

FDR Gets To Work Right Away Declares a Bank Holiday, Closing ALL Banks for 4 Days Why? To Get $$$ to the banks!!

Alphabet Soup AAA, CCC, FDIC, SEC, SSA, PWA, TVA, WPA, Nickname given to all these programs

FDR and The New Deal Help Labor Wagner Act- allowed workers to BARGAIN COLLECTIVELY for what they wanted. Fair Labor Standards Act- Created Minimum Wage, Maximum Hours..25 cents/44 hours a week originally. $6.55/40 hours NY- $7.15- $7.25 July

Minimum Wages Green-higher, Blue-same, Yellow-None, Maroon-Lower

Court Packing

2 New Deal programs declared unconstitutional NRA and AAA > gov’t getting involved with intrastate trade FDR tries to change # on S.C. to get more support for his programs (9 to 16) – Vetoed by Congress

Eleanor Roosevelt

Why is FDR Elected 4x’s? Seen as using government to help Feared change during crisis-Dep./WW2 Confident attitude Support from new voters- – Labor: supports union – Women: women get jobs in government – Minorities: received assistance from the New Deal programs

Criticism of the New Deal Creeping Socialism- Critics accused FDR of bringing the U.S. too close to Socialism.

The New Deal is a Major Turning Point in American Government! The government became more involved in the economy and people’s lives! The New Deal Does Not End the Great Depression! World War 2 Does!!

Wagner Act, Fair Labor Standards Act, SSA, FDIC, Creeping Socialism, Rugged Individualism, Court Packing, TVA, AAA, CCC, Bonus Army, Okies, Hoovervilles, Hoover Blankets, Dust Bowl, Deficit Spending, Brain Trust, Relief, Recovery, Reform