1. Prosperity, Depression, & The New Deal
American History II - Unit 4
Ms. Brown

2. Review
All Americans suffered during the Great Depression, but minorities were hit especially hard. Why?
Higher unemployment, lower wages, racial violence due to job competition
How did the Dust Bowl exacerbate (make worse) the effects of the Great Depression?
Farmers were already struggling due to low crop prices, high debt, and foreclosures
The drought left the land completely useless – midwesterners went west looking for new opportunities
In what ways was the American family changed by the Great Depression (consider men, women, and children)?
Families – increased emphasis on the family unit, but many fell apart as men and children left the home
Men – many unemployed, some left families in search of work, hoboes
Women – traditional duties and head of household duties if men left, some looked for new work
Children – no school funding, lack of nutrition, many left their families in search or work

3. 4.7 – Hoover’s Failed Response

4. Hoover’s Philosophy
Gov’t should play a limited role in solving economic problems
Encourage and facilitate cooperation between competing interests (ex: business vs labor), not control it.
Opposed social welfare
American belief in “individualism” (people should succeed through their own efforts)
Handouts would weaken people’s self respect and “moral fiber”
Hoover’s response to the oppressing depression shocked and frustrated many struggling Americans.

5. Trickle Down Economics
Economic theory that believes economic benefits provided by government to businesses and the wealthy will benefit poorer members of society by improving the economy as a whole
Ex: if a business had adequate capital, it would expand, hire more workers, and thus benefit the individual.
During the depression, many argued that the poor still needed direct help, more so than corporations and businesses.

6. Boulder Dam
As Sec. of Commerce, Hoover proposed the construction of a dam on the Colorado River.
To minimize federal intervention, the profits from the sale of the electric power that the dam would generate would finance the construction.
Authorized in the fall of 1929, called Boulder Dam (later Hoover Dam)
Electricity, flood control, water supply to California’s agriculture

7. Depression Takes Hold
Depression resulted in decreased popularity of Hoover and Republicans  Democrats won control of the HoR and gained more seats in the Senate in 1930
“Hoovervilles” – shantytowns named after Hoover’s failure to address the Depression
“Hoover blankets” – newspapers used as blankets by homeless
“Hoover flags” - pockets turned inside-out

8. Hoover Takes Action
Preferred limited gov’t, but recognized the need for government intervention
Federal Home Loan Bank Act – 1932
lowered mortgage rates for homeowners
allowed farmers to refinance their farm loans and avoid foreclosure
Reconstruction Finance Corporation (RFC) – 1932
authorized up to $2 billion for emergency financing for banks, life insurance companies, railroads, and other large businesses  businesses continued to fail
Too little too late…

9. The Bonus Army Spring of 1932
between 10,000-20,000 WWI vets and their families arrived in Washington DC
supported the pending Patman Bill - WWI vets would be compensated “bonus” pay for their wartime service - $500 immediately, life insurance later
called themselves the Bonus Army
Hoover opposed the Patman Bill - voted down by Senate
Hoover asked Bonus Marchers to leave, 2,000 stayed hoping to meet with the president.

10. Disbanding the Bonus Army
Hoover nervous that the remaining Bonus Marchers would become violent  1,000 soldiers under the Command of General Douglas MacArthur and Major Dwight D. Eisenhower disbanded the remaining marchers
Gassed more than 1,000 people
11-month old baby died, 8 year old boy blinded
2 people shot, many injured
Americans stunned and outraged  dramatically hurt Hoover’s image… Election of 1932 just around the corner…

11. RAFT
Suppose the year is 1932, write a letter to a far away relative or friend in which you describe your life since the stock market crash in October 1929 and the continuing Dust Bowl in the mid-west.
Discuss hardships and obstacles, as well as how you have adapted/changed and what you have learned.
Mention at least 2 pieces of historical evidence from what we have learned the past 2 days (look at today’s and yesterday’s notes)
10 sentences minimum (about 2 paragraphs)
Take the perspective of one of the following:
a farmer
an unemployed urban dweller
a “wild boy”
a woman
a racial minority
a roaming hobo