Hoover and the Great
Depression
AP Outline




Depression, 1929-1933
Wall Street crash
Depression economy
Moods of despair



Agrarian unrest
Bonus march
Hoover-Stimson diplomacy; Japan
Hoover Key Terms





Great Depression
Stock Market Crash
Hoover's Response to The Crash
Chain Reaction-Unemployment-Bank
Failures
Massive Suffering
Causes of the Depression



Uneven Distribution of income
Stock Market SpeculationExcessive Credit


Buying Stock on Margin
Over Production of Farm Goods
Great Depression
Suffering
Okies and
“Hooverville”
Hoover’s Response

Hoover’s Initial Reaction:








Conservative Republican
Thought the poor economy would improve…
Just another temporary down turn
Government’s Reaction Made the Depression worse
Idea- Government cuts (spending) expenditures to balance the
budget
Raised taxes
Cut spending
Significance-problematic action it took $ out of the economy
Hoover Responses



No government interference in the economy“The Dole corrupts society” no government help in relief
of unemployment
Volunteerism- private charities should help the needy







People should give to charity
Called bankers to bolster financial market
Called industrialist not to lower wages
“Bank Relief”
(RFC) Reconstruction Finance Corporation Hoover
did try to help and support banks and corporations by
offering loans that would spur the economy.
Public Works- (limited) Hoover Dam
No government deficit spending (he changes his
mind in 1932 and begins deficit spending)
The “Bonus
March”




Veterans of World
War I
Demonstrate,
protest, camp out in
Washington DC
Hoover orders Army
to remove
protestors
MacArthur and
tanks are finally
used
FDR and The “New Deal”
New Deal














Franklin D. Roosevelt
Background, ideas
Philosophy of New Deal
100 Days; "alphabet agencies"
Second New Deal
Critics, left and right
Rise of CIO; labor strikes
Supreme Court fight
Recession of 1938
American people in the Depression
Social values, women, ethnic groups
Indian Reorganization Act
Mexican American deportation
The racial issues
Who is Franklin Delano Roosevelt?
•Huge
personality
•Energetic
•New York, Wealthy
Family
•Cousin to TR, Harvard
Educated
•VP Candidate 1920
•Self confident
•1921 stricken with
Polio- wheel chair
•Charismatic
•Under Secretary of
the Navy, Wilson
•Consummate
politician
•Governor of New York
1928 thru 32
•Father Figure
and Savior
Democratic Nomination

Gains nomination by bringing diverse
groups togetherSteals the Nomination from Al Smith

# 1 factor in the election is ECONOMY

Election of 1932




FDR believed in
Progressive ideals
The Government
serves the people
Truly sympathetic to
the disadvantaged
Government needs to
reform business
Platform
Low Tariff
Unemployment
Insurance
Old Age Insurance
FDR pledged a new deal for
America




"I pledge you, I pledge myself, to a new deal for
the American people." FDR Democratic National
Convention 1932
“The Country demands bold persistent
experimentation.” FDR
But never said what it would be or how it would
work…
Inaugural Speech
Election of FDR
“A New Deal For the American People”
Election Map of 1932
FDR and Democrats win


Immediately Roosevelt calls together
experts November –January
The “Brain Trust”- political, business and
Intellectuals/Academics
Overview of FDR Admin





The New Deal represents the
greatest expansion of Federal
power in the history of the
country.
Created Foundation Social
Insurance= Social Security,
Unemployment, Aid to Families
with Dependent Children
Extended Regulation of
Economy=regulation of
economy= banking, Securities
and Exchange Commission
Supported the Modern labor
movement- labor supports
Government intervention in
Agriculture Economy




Funded Public Works
Projects- WPA, WPA
Developed Regions of
the US- TVA
Strengthened the
Democratic Party
30yrs in power
Did not End the Great
Depression
FDR Overview





The EXTREME Politician
4 Terms as President
Democrats Controlled
Congress Too
Extremely Popular
Many political rivals-on
the left and the right
What is the New Deal?
The 3-Rs




The “Brain Trust” created a series of
programs created by the Federal
Government that provided for changes to:
Aid economic development (Recovery)
Help citizens (Relief)
Prevent another depression from occurring
again. (Reform)
Three “R”s



Relief for the people out of work
Recovery for business and economy
Reform of American economic institutions

Laws to prevent another economic collapse
First 100 Days




Inaugural speech March 4,
1933
“The only thing we have to
fear is fear itself.” Link to speech.
Offered the American public
hope!
Emergency Session of
Congress to approve and
enact new laws to aid the
economy.
First item:
Bank
HolidayEmergency
Banking Act
John Maynard
Keynes




Keynesian Economics
Father of deficit spending
Advocated the use of Government
spending to mitigate the problems of
Capitalism in an effort to spur and stabilize
the economy
See reading
Mass Media: RADIO




“Fireside Chats” “Link to Fireside Chat”
60 million people
Offer confidence and hope
People begin to trust and look to him for
help
New Deal Legislation (100 Days)








Repeal Prohibition: 21st
Amendment
Revenue Act- Tax Alcohol
Agricultural Adjustment Act
(AAA)
(NRA) National Recovery
Administration
(NIRA) National Industrial
Recovery Act
(PWA) Public Works
Administration
(WPA) Works Progress
Administration
(FCC) Federal Communications
Commission





(TVA) Tennessee Valley
Authority
(FERA) Federal Emergency
Relief Administration Harry
Hopkins- leader
(CCC) Civilian Conservation
Corps
FHA Federal Housing
Administration
Currency, Banking and Stock
Market Reforms
Social Insurance- Huge Change





Federal Government now Steps in to insure the
social welfare of citizens at a minimum level.
SS Social Security Act 1935- old age pension
AFDC Aid to Families with Dependent Children
Unemployment Insurance
Federal Aid to people with disabilities
FDR’s Cabinet
Frances Perkins First woman in
the Cabinet
Link
Secretary of Labor
1933-1945
Harry
Morgenthau
Link
First Jew in the
Cabinet:
Harry Hopkins
Link
Managed FERA
Closest and
longest advisor to
FDR. Lived in
White House.
All through the
war too
Secretary of the
Treasury
Critics of FDR


Right
American Liberty League-big business
Raskob Chairman of GM
Father Coughlin
Left
Dr. Townsend
Social Security
Huey P. Long
“Share the Wealth”
2nd New Deal






Goals to create more jobs
Security against old age-unemployment,
and illness
Improve slums and housing
Social Security-(1935)
Unemployment Insurance
Wagner Act- National Labor Relations Act
Labor Rises under the New Deal


After 1933 Union Membership expands- normally
this is not the case
NIRA- sec 7 reaffirms rights of labor to organize


Rights of labor to collective bargain
The New Deal allowed for labor protections:




First under the National Recovery Administration(NRA)
Set minimum wages and prices in effort to create jobs
NRA is found unconstitutional by Supreme CourtSchechter Poultry vs United States
 Supreme Court said Congress could not set prices
for goods and strikes down NRA.
The New Deal was Pro-Union
(Senator)Wagner Act



The National Labor Relations Act gave
workers the right to negotiate through unions
of their choice.
It also prevented employers from interfering
with union activities
Established the National labor Relations Board
to oversee union issues

Enforce Labor laws
John L. Lewis
and the CIO






Charismatic Leader
President of the United Mine Workers
Began as VP of American Federation of
Labor
Wanted to include mass production
workers in AFL (UNSKILLED WORKERS)
When AFL resists- he forms CIO
Congress of Industrial Organizations
CIO






Included unskilled
workers
Auto workers
Steel workers
Textiles
Laundries
Tobacco






Women & Blacks Allowed
More militant than AFL
Overall Unions Grow:
1932- 3million Union
workers
1937- 8 million union
workers
1941- 10 million union
workers
Memorial Day
Massacre





1937: UNITED STATES.
Republic Steel is owned by Cyrus
Eaton,
Republic routinely spies on its
workers and fires anyone
engaging in union activity.
The company maintains a stock of
weapons including guns, tear gas
and clubs at its various plants for
use against workers
When a walkout begins at Republic's
Chicago mill, police enter the plant to
drive union organizers out. The
strikers then form a picket line in front
of the plant's main gate.



. Police break the picket line, arresting
more than twenty people. As the
workers attempt to once again
establish their legal picket line, more
than two hundred police, many armed
with non-regulation clubs and tear gas
supplied by Republic Steel, fire over
two hundred shots at the workers and
then attack with clubs.
When the slaughter is over, four
workers are dead, six will die later
from their injuries and about sixty
others are wounded, many seriously.
Many of the dead have been shot in
the back.
The murders will be remembered in
the labor movement as the Memorial
Day Massacre.
CIO vs. General Motors





GM employed 240,000 workers
Detroit/Flint Michigan area
The first use of “Sit Down Strike” is seen
Workers go to work, peaceful
demonstration, refuse to work.
Government sides with labor and no
national guard and strike violence
GM Gives In








GM gave in to strikers demands
United Auto Workers is recognized
Auto Workers and Steel Workers join the CIO1937- 200,000 Auto Workers
300,000 steel workers
Membership grows 4 million
Represents- pro-union stance of New Deal
However- some violence still exist in labor
disputes- Chrysler, Ford, and Republic steel

How does FDR end up with a “friendly”
Supreme Court?
FDR and the Court




Second Term- 1937
Economy growing but New Deal still
needed
Supreme Court was limiting the
effectiveness of programs
They reflected conservative- Right Wing
views= pro-business, reduce government
interference
The Court in 1937



Older Generation
Had different vision of society
9 Judges- 7 appointed by Republicans



80% of Judges in lower Fed courts
Roosevelt was Frustrated:
FDR proposed to add up to six new judges to
the Supreme Court and up to 44 judges to lower
federal tribunals. His scheme was advertised as
court reform.
FDR tries to Circumvent the Court





FDR was afraid that the court would continue to
limit New Deal reforms- like AAA and National
Recovery Administration NRA
Proposal sent to Congress:
Face value- appoint more judges to make courts
more efficient
Truth: add more liberal judges to manipulate the
process- pro-New Deal judges
FDR is widely criticized
FDR’s Plan Backfires




Public outcry and criticism reduces plan to
defeat
Court becomes more moderate
Social Security Act upheld
National labor Relations Board vs. Jones
and Laughlin Steel:

Wagner Act is upheld- (Pro Labor Decision)
“A Shift in Time Saves Nine”


Rational for Majority Decision- NLRB v
Jones and Laughlin Steel
“Unions served to maintain labor peace
and prevent the disruption of interstate
commerce; it was thus Constitutional for
the Federal Government to promote
Unionization through the mechanisms
created in the Wagner Act.”
Liberal Judges Appointed




Justices Hugo Black
Justices Frank Murphy
Justices Felix Frankfurter
Will have lasting impact on American
Government
Recession 1938


New Deal is coming to an end
1937- 2 new pieces of legislation enacted


1938- Farm Bill = similar AAA-compensating
farmers- controlling supply and pricing
Fair Labor Standards ActProhibition of child labor
 Minimum wage= .40 cents hour
 40 hour work week

1933-1938



New Deal is working- people are working
Relief programs are being successful
But- the economy is still very bad



Unemployment
Production down
1938 Economy drops again


Unemployment rises
Stock Market drops
Recession and FDR



FDR thought the Economy was on the rise
Cuts WPA- PWA –Federally sponsored
jobs
Federal Reserve raises interest rates


Causes tight credit- reduces the supply of
credit few
SS taxes cause money to come out of
economy
FDR Moderates the New Deal and
people lose jobs
FDR and Minority
Groups




FDR was sympathetic in general, to African
Americans
Refused to push for a strong Federal Lynching
lawHe was afraid to alienate the Southern Democrats
Eleanor was the greatest supporter of African
American issues and civil rights
Eleanor a Truly
Compassionate
Human Being



Eleanor Roosevelt fought for African
American civil rights and improvement
She pressured FDR to listen and try to
improve conditions for African Americans
in the US
Supported anti-lynching laws, abolition of
poll taxes, and
New Deal Programs and
Discrimination



New Deal programs like:
CCC- had segregated units and camps
NRA paid blacks less
New Deal helped African Americans



African-Americans, who for many years had
loyally voted with the Republican Party, switched
to the Democratic Party as a result of the
popular New Deal reforms.
Though discriminated against by nearly every
New Deal agency, especially in the South, they
were almost never excluded from assistance
altogether.
The New Deal provided African-Americans with
immediate economic assistance that stood
between them and complete destitution.
The Black Cabinet


Roosevelt was the first president in the
modern period to even listen and or
acknowledge African American needs
He was not overtly supportive because of
political considerations (Southern
Democrats) but he did listen and allowed
for some support
Phillip Randolph- African American
Leader


Leader of the train porter’s
union
Becomes spokesman for
mainstream African
Americans
Indian Reorganization



The Dawes Plan of 1887, forced Native
Americans to reorganize their living
conditions-they had to divide land
individually.
In the New Deal- the reorganization of
Native land allowed for collective (group)
ownership, and funding for education, and
cultural programsNative Americans were not left out.
Mexican Deportation



Many Mexican immigrants begin to arrive
in the 1920s
When the Depression hits, more come,
but then a backlash against them occurs
The competition over jobs causes
resentment and deportation of over
500,000 people, mostly in the south-west
Document Interpretation
DBQ




Read the Question before you read documents
Brainstorm all prior knowledge regarding question
Create a thesis
Read each document:










Brainstorm prior-knowledge for each document-list on the DBQ
Interpret each document:
What do you know about the source, author?
What is the context of the document?
What is the main message of the document?
What perspective is being portrayed?
What is the purpose of the document?
What is the significance of the document?
What point could you make with this document in relation to the
question?
Read and brainstorm 5 documents
(AAA) Agriculture Adjustment Act





May 1933
Reduce Crop production
to increase prices
Wheat, Cotton, Corn,
Hogs, Rice, Tobacco,
Dairy
Set production limits
Subsidies- Government
payments to Farmers to
not produce





Effects
Helped raise prices
Stabilized Agriculture
Helped land owners
Supreme Court struck
down 1936

Said constitution does not
allow government to
require limits on production

NIRA
and NRA

National Industrial
Recovery Act

National Recovery
Administration

Public Works
Administration


Government projects to
build infrastructure and
provide jobs
To help NIRA spend money
Attempted to stabilize
Industry
Regional Planning: TVA



Tennessee Valley Authority
Dams created
To provide electricity to rural America
WPA










Works Progress Administration
To provide Work Relief = 2.1
million Jobs
Gov $ in exchange for work
Public buildings
Schools
Post Offices
Airports
Roads
Bridges
Parks






Provided Jobs also to out of
work:
Writers
Artists
Musicians
Theater People- actors,
directors
Funded Emergency Housing
Division

Provided Public Housing
FERA



Federal Emergency
Relief Administration
The Dole = direct gov
support cash
FDR and Hopkins
preferred Work Relief








CWA- Civilian works
Administration
1933-34
4 million people get
jobs (public works)
CCC Civilian
Conservation Corps
Jobs for young men
In National Parks
Semi-Military
Planting trees and
building roads etc
Currency, Banking, and Stock
Market Reform

Glass-Stengall Act (Huge)




Bank Regulation
Established FDIC (deposit
insurance)
Government regulation of
banks
US leaves the Gold
Standard (allows
government impact the
value of the dollar)

Truth in Securities Act
(1933)


Requires truth in stock
market
SEC (1934) Securities and
Exchange Commission


Regulates the stock market
To prevent another crash