"66 is the path of a people in flight,

refugees from dust and shrinking land, from the thunder of

tractors and invasion, from the twisting winds that

howl up out of Texas, from floods that

bring no richness to the land and steal

what little richness is there." Chapter 12,

pg. 150

What do think about the passage and the picture?

CH 14-15

NO DIRECT RELIEF WHY?

He believed private groups should provide relief He believed in “rugged individualism” He believed the economy would improve on its

own, and people would endure/survive.

Toward the end of Hoover’s term as president, the Depression had only gotten worse. In an effort to improve his reputation, Hoover started some programs that attempted to ease the Depression. Boulder (Hoover) Dam (1929): created jobs for

unemployed; provided irrigation for the region Federal Home Loan Bank Act (1932): lowered

mortgage rates so people could afford to pay Reconstruction Finance Corporation (1932): gave

gov’t loans to businesses and banks, but did nothing for individuals

In 1932, just a few months before the next presidential election, Hoover had another problem. Bonus Army: a group of WWI veterans who

demanded their bonuses early. They set up a “Hooverville” right outside of Washington, D.C., but Congress did not pay them their bonus. Instead, Hoover asked the army to clear out the Bonus Army veterans, and the army ended up killing and injuring some of the veterans.

Movie

Franklin Delano Roosevelt (FDR) won the 1932 election because people were fed up with Hoover. In FDR’s first 100 days as president, he and congress created many new programs that would help the American people and ease the troubles of the Great Depression. Together all these programs were known as the “New Deal.”

FDR told the nation his plans in weekly “fireside chats.” These fireside chats were radio speeches that made the people feel like FDR was sitting right next to them in their living room as they listened. These speeches eased the nation’s fears and made them trust FDR.

The New Deal had three important goals:

RELIEF – help individuals who need it most

RECOVERY – stimulate economic growth

REFORM – prevent this from ever happening again

New Deal Programs Emergency Banking Relief Act:

closed all banks to prevent anymore withdrawals

Treasury Dept. inspected all banks banks that were stable were allowed to

reopen, those that were not remained closed until they could be reorganized and managed better

New Deal Programs There were many other programs as well. Use

your chart to understand and study these New Deal agencies.

There were some people who did not like FDR’s programs. Here’s why. Many people still believed that the individual

should take care of himself. If you help needy people, they will become dependent.

FDR’s programs were based on deficit spending, which means that the government was spending more money than it was making.

Some people thought the New Deal was socialism – which is when the government partially controls the economy. (Remember that Americans had always believed that government should keep it’s hands off business!)

By 1937, even the Supreme Court had declared some of FDR’s New Deal programs unconstitutional. FDR’s response was to try to change the Supreme Court. FDR suggested that six new justices would be

added to the Supreme Court because he wanted to be able to choose these new judges and “stack the team” in his favor. Critics called this his “court-packing scheme” and it never succeeded. In the end, one justice retired and FDR was able to appoint a judge that supported his New Deal.

FDR was not the only important person in the White House during the Depression. His wife, Eleanor Roosevelt, spoke out on behalf of women and minorities. Frances Perkins was appointed

Secretary of Labor and became the first female cabinet member.

Mary McLeod Bethune was an African American woman who advised the president on minority affairs.

The New Deal permanently changed the role and responsibilities of the federal government. It created social welfare agencies (Social

Security, etc.) It increased people’s expectations of what the

federal government can/should do. It created regulatory agencies (SEC, FDIC,

etc.) It increased the power of the federal government.

The New Deal also renewed American’s belief in their democratic government. Other nations, like Germany and Italy,

surrendered political power to dictators during this same time period.

However, the New Deal also had some negative effects. National debt increased from $16b to $42b. It created a large bureaucracy – which means

that power was split into many different agencies with many responsibilities.

So, did the New Deal end the Great Depression?

NO!

The Great Depression did not end until the U.S. entered World War II.

BUT, the New Deal did help to ease the problems of the Great Depression and it helped a lot of needy people get back on their feet.