• President Harding & Coolidge both favored business over labor
• Raised tariffs on exports (Hawley-Smoot
Tariff) … caused?
• After WWI gov. no longer regulated prices of goods & businesses (Adkins v.
Children's Hospital)

• New machinery for farmers = McCormick reaper = production of more goods
• Allies not able to pay war debts
• Trickle Down economics

• October 29, 1929- stock market crashes
• 40 billion dollars lost in 2 months
• Suicide rates jumped …“for Sleeping or jumping”
• 4 million workers lost jobs in one year

• Hoover provided the following
– state and local relief programs
– business maintaining wages and employment
– private volunteer efforts
– emergency financing for banks and railroads

• Bonus March summer of 1932
– WW I veterans tried to pressure Congress to pay them their retirement bonuses early.

if I leave my mother, it will mean one less mouth to feed”
• Poor diets
• Schools closed
• Hit the “tracks”

“We’d Like to Thank You Herbert Hoover
•
Today we're living in a shanty
Today we're scrounding for a meal
[SOPHIE]
Today I'm stealing coal for fires
Who knew i could steal?
[MEN]
I used to winter in the tropics
• We're turning blue!
They offered us Al Smith and Hoover
We paid attention and we chose
Not only did we pay attention
We paid through the nose
• In ev'ry pt he said "a chicken"
But Herbert Hoover he forgot
Not only don't we have the chicken
We ain't got the pot!
Hey Herbie
[WOMEN]
I spent my summers at the shore
[WOMEN]
You left behind a greatful nation
[FRED]
I used to throw away the paper--
[ALL]
So, Herb, our hats are off to you
We're up to here with admiration
[ALL]
We'd like to thank you: Herber Hoover
For really showing us the way
We'd like to thank you: Herbert Hoover
You made us what we are today
[SOPHIE]
Come down and have a little stew
Prosperity was 'round the corner
The cozy cottage built for two
In this blue heaven
That you
Gave us
Yes!
[ALL]
Come down and share some Christmas dinner
Be sure to bring the missus too
We got no turkey for our stuffing
We'd like to thank you, Herbert Hoover
For really showing us the way
You dirty rat, you Bureaucrat, you
Made us what we are today
Come and get it, Herb!
.

• Era of Democrats
• Modern ideals of Democratic party form
• Shift in followers of political parties.
• Blacks leave the Republican party of
Lincoln for the Democratic party of FDR

• name FDR gave to his new program to fight the
Depression
• Step 1 BANKING
HOLIDAYbanks shut down and subject to gov't inspection, allowed to open when "healthy"

• step 2 - stock market reformSecurity
Exchange
Commission est. to police the NYSE buying on margin was regulated
• step 3 - FDR went off the GOLD
STANDARD w/ more
$ in circulation, wages and prices increased

• FRD and the 3 R’s- relief, recovery and reform.
• Min. wage requirements, old-age insurance, restrictions on child labor.

• NATIONAL INDUSTRIAL RECOVERY ACT
(NIRA) and NATIONAL RECOVERY ADMIN
(NRA) were to fix problems between labor & business
• child labor banned, shortened work hours
• business people challenged the NRA, claiming it was communist
• Social Security Act

» TENNESSEE VALLEY AUTHORITY
– used to lower electrical rates
 fed. gov't. took ownership
(nationalization v. privatization)

• Set prices on farm products to that of
1909-1914
• Paid growers if they REDUCED production
• Produce and meat was wasted and
“trashed” to keep prices up….. Meanwhile
Americans are staving
• 1936 supreme court rules unconstitutional use of taxes
• Soil Conservation Act 1936- encourages farmers to plant soil conserving crops

• 1933 drought hits the mid-west
• Made worse by barren farm land left over from WWI
• “Okies” and “Arkies”

• FDR 2 nd Term in office
• first objective: to reorganize the Supreme Court - they block some New Deal legislation
• FDR wants # of judges changed from 9  15 (to
"pack the court")

• more gov't involvement …. democracy?? Or socialism???
• New Deal helped in stimulating the U.S. economy
• New Deal saw expansion of U.S. gov't in :
1) economy
2) social reform

• Radio talks about public concerns.
• Explained New Deal programs in clear simply terms for the American people.
• Brought hope to the American people.

Assignment
• In groups of 4 you will produce a 30 second
“Fireside Chat”.
• Each group will be given a New Deal program and use the following terms to create a radio address.
• Use page 500 in textbooks.
Terms
• Speculation
• Buying on the margin
• Black Tuesday
• Dust Bowl
• Bonus Army
• New Deal
• 100 Days
• Eleanor Roosevelt
• Alphabet soup
• Franklin D. Roosevelt