1. The Great Depression & The New Deal
PART 1

2. Watched the following video for most of the background information:

3. 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

4. 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.

5. 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.

6. 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.

7. Franklin Delano Roosevelt 1933-1945

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

9. Franklin and Eleanor

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

11. Governor of NY in 1928

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

13. 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

14. 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

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