1. Focus  When the Great Depression began, President Hoover believed that the economy would fix itself, but the depression got worse. In 1932, Franklin D. Roosevelt was elected and began the New Deal

2. Review  1. Explain how the stock market crash led to the Great Depression.  2. Explain two other causes of the Great Depression.

3. Reaction to the Great Depression  When the Depression began, Hoover said it was only temporary  He did not believe the government should give assistance to the people  Soon, millions of people were out of work  Herbert Hoover

4. The Great Depression 1929- 1933  Hoover’s lack of direct assistance to the people made him extremely unpopular  Homeless families began living in “Hoovervilles”

5. The 1932 Election  Hoover ran for reelection in 1932  The Democrat was NY Governor Franklin D. Roosevelt

6. Do Now: Compare and contrast Hoover’s view and Roosevelt’s view on the role the government should play in trying to solve the problems of the Great Depression. Give a specific example of each as evidence. “The evidence of our ability to solve great problems outside of government action and the degree of moral strength with which we emerge from this period will be determined by whether the individuals and the local communities continue to meet their responsibilities. Throughout this depression I have insisted upon organization of these forces through industry, through local government and through charity, that they should meet this crisis by their own initiative, by the assumption of their own responsibilities. The Federal Government has sought to avoid the necessity of government charity and the stifling of our national spirit of mutual self- help.” -Herbert Hoover 1932  “Yes, when--not if-- when we get the chance, the Federal Government will assume bold leadership in distress relief…. I say that while primary responsibility for relief rests with localities now, as ever, yet the Federal Government has always had and still has a continuing responsibility for the broader public welfare. It will soon fulfill that responsibility.”  -Franklin D. Roosevelt 1932

7. The 1932 Election  FDR promised a “New Deal” for the American people  The government would take a more active role in trying to end the Depression, and the people’s suffering

8. The 1932 Election  FDR won the election in a landslide

9. The Banking Crisis  By 1933, thousands of banks had closed  Ran out of money from giving out loans  Unemployment led to an inability to pay loans back  FDR’s first action as president  declares “bank holiday”  Close all U.S. banks for 3 days  Determine if banks have enough money  They did  FDR tells people to put money in bank  Restores confidence in the banking system

10. The New Deal 1933  Purpose of the New Deal  for the federal government to try to help bring an end to the Great Depression

11. The New Deal 1933  Three R’s:  Relief  Recovery  Reform