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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 Speculation- Excessive Credit Buying Stock on Margin Over Produciton 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 governments help in relief of unemployment Volunteerism- private charities should help the needed 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. No government deficit spending (he changes his mind in 1933 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 •New York, Wealthy Family •Cousin to TR, Harvard Educated •Energetic •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 Democratic Nomination Gains nomination by bringing diverse groups together- Steals the Nomination from Smith # 1 factor in the election is ECONOMY Election of 1932 FDR believed in Platform Progressive ideals Low Tariff The Government Unemployment serves the people Insurance Truly sympathetic to Old Age Insurance the disadvantaged Government needs to reform business 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… Election of FDR Election Map of 1932 FDR and Democrats win Immediately Roosevelt calls together experts November –January The “Brain Trust”- political, business and Intellectuals/Academics Key Idea The New Deal represents the greatest expansion of Federal power in the history of the country. The Federal Government will now take on the role of supporting Americans through regulation of economy= banking, labor supports, Securities and Exchange Commission, and Social Insurance= Social Security, Unemployment, Aid to Families with Dependent Children, What is the New Deal? 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 First 100 Days Inaugural speech March 4, 1933 “The only thing we have to fear is fear itself.” Offered the American public First item: hope! Bank Emergency Session of Holiday- Congress to approve and Emergency enact new laws to aid the Banking Act economy. 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” 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 (TVA) Tennessee Valley Revenue Act- Tax Alcohol Authority Agricultural Adjustment (FDIC) Federal Deposit Act (AAA) Insurance Corporation (NRA) National Recovery (CCC) Civilian Administration Conservation Corps (NIRA) National Industrial (FERA) Federal Recovery Act Emergency Relief (PWA) Public Works Administration Harry Administration Hopkins- leader Other New Deal programs (SEC) Security and Exchange Commission (FCC) Federal Communications Commission Critics of FDR Right American Liberty League-big business Raskob Chairman of GM Left Father Coughlin Dr. Townsend Huey P. Long Social Security “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 The New Deal allowed for labor protections: First under the National Recovery Administration- (NRA) Set wages and prices in effort to create jobs NRA is found unconstitutional by Supreme Court- Schechter Poultry vs United States FDR Was Pro-Union 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 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 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 CIO- 1937- 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 ton 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 Act- Prohibition 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 law- He 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 programs- Native 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
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