III- FDR and the New Deal

A) During the beginning of the depression, President Hoover took a “hands off” economic policy 1) Hoover did not want the government controlling or bailing out private industry

2) Hoover’s administration provided very little government assistance to the public hurt by the economic collapse

3) LAISSEZ FAIRE Economics - merchants and companies should operate with little or no government oversight. 4) The lack of government action helped to worsen the Depression

IV- The Bonus Army A) In 1932, WWI veterans build a “Hooverville” on the mall in Washington DC. B) The Vets were demanding to be paid a cash bonus promised to them by Congress. C) The bonus was supposed to be paid in 1945 but they needed it now

D) The Senate refused to pay and the Army was called in to violently eject the Vets from the Mall 1) This unpopular act further dooms Hoover’s chances to be re-elected

V- FDR A) Franklin Delano Roosevelt (FDR) is elected President in (Won all but six states) 1) He was a popular Senator from NY who suffered from polio (he was unable to walk and used a wheelchair)

B) Unlike Hoover, FDR was willing to use the power and money of the federal government to try and end the depression.

` C) FDR promised a “New Deal” for American’s 1) The New Deal- federal programs of relief, recovery, and reform to combat the Great Depression.

VI- New Deal Programs GO A) Between 1932 and 1939, FDR implemented dozens of programs. 1) If one was ineffective, that quickly tried something new

B) SEC- Securities Exchange Commission- Federal Agency that polices the stock market looking for abuses and cheaters.

C) FDIC- Federal Deposit Insurance. The government insures every bank account up to 200,000 dollars. 1) This prevents runs on the banks.

D) Social Security Act- Citizens pay into a trust fund (type of savings account) during their working years. 1) Money in the fund is paid out to older citizens when they retire (65). 2) This retirement fund keeps seniors no longer able to work from becoming destitute. a) Destitute- unable to afford food and shelter

E) The programs of the New Deal prevent economic conditions from getting worse. 1) They also help prevent future economic catastrophes 2) The nation’s economy will remain stagnant until 1941.