The US Between Wars The Great Depression

The US Between Wars
The Great Depression
Reasons for the Stock Market Crash
 Economic factors
 Imbalance between productivity and purchasing power
 Recurring problem of overproduction and
 Severity of collapse
 International component
 Governmental policies
 High tariff reduced foreign demand for U.S. goods
 Hawley-Smoot Tariff of 1930
 Gold standard
Hoover’s Recovery Efforts
 Advocate of laissez-faire
 Focus on government-stimulated voluntarism
 Hoover’s exhortations
 Exhorted businesses to
stay open
maintain wages
let first blow fall on profits
 Union leaders agreed to refrain from strikes and demands for
increased wages
 Public works and credit
 Understood that construction spending could help
 Placed emphasis on private and state efforts
 States typically outspent feds 10/1
A Run on the American Union Bank
Evicting the “Bonus Army”
“The state is the representative of an organized
society of human beings – created by them for their
mutual protection and well being. The government is
but the machinery through which such mutual aid
and protection is achieved . . . . The duty of the state
towards the citizens is the duty of the servant to its
master.” Franklin Delano Roosevelt, August 1931
Contrasting Candidates
Herbert Hoover
Time worn
Stressed volunteerism
Believed in:
 limited government
 sound money
 balanced budget.
 Blamed depression primarily on international events
Contrasting Candidates
Franklin Delano Roosevelt
 Optimistic and energetic
 Embraced activist government
 Guiding principle: Government had a duty to help people
 Pragmatic
 “Trial and error” approach
 Blamed depression primarily on domestic factors
The Presidential Election of 1932
Roosevelt’s Three-Pronged Strategy
 Address financial crises & emergency relief
 Promote industrial recovery
 Raise commodity prices
Financial Crisis
Rescuing the Monetary System
Bank holiday
Emergency Banking Act
Economy Act
Refinancing farm and home mortgages
Reform of banking and stock markets
 Creation of FDIC
 Regulation of stocks and bonds (SEC)
 Abandonment of gold standard
FDR and the “Fireside Chat”
Financial Crisis
Emergency Relief Measures:
Civilian Conservation Corps (CCC)
Federal Emergency Relief Administration
Civil Works Administration
Works Progress Administration (WPA)
Federal Art and Writers’ Projects
National Youth Administration
Civilian Conservation Corps
CCC Workers
WPA: Building Roads in Utah
Recovery Through Regulation
 Aid for agriculture
 Aid for industry
 Regional planning
The Dust Bowl
The Dust Bowl
National Recovery Act
“We Do Out Part”
Ending the Depression
What ended the Great Depression?
World War II