III- FDR and the New Deal

• A) During the beginning of the depression, President Hoover took a “hands off” economic policy

• 1) Hoover did not want the government controlling or bailing out private industry

• 2) Hoover’s administration provided very little government assistance to the public hurt by the economic collapse

• 3) LAISSEZ FAIRE Economics - merchants and companies should operate with little or no government oversight.

• 4) The lack of government action helped to worsen the Depression

IV- The Bonus Army• A) In 1932, WWI veterans

build a “Hooverville” on the mall in Washington DC.

• B) The Vets were demanding to be paid a cash bonus promised to them by Congress.

• C) The bonus was supposed to be paid in 1945 but they needed it now

• D) The Senate refused to pay and the Army was called in to violently eject the Vets from the Mall

• 1) This unpopular act further dooms Hoover’s chances to be re-elected

V- FDR

• A) Franklin Delano Roosevelt (FDR) is elected President in 1932. (Won all but six states)

• 1) He was a popular Senator from NY who suffered from polio (he was unable to walk and used a wheelchair)

• B) Unlike Hoover, FDR was willing to use the power and money of the federal government to try and end the depression.

`• C) FDR promised

a “New Deal” for American’s

• 1) The New Deal- federal programs of relief, recovery, and reform to combat the Great Depression.

VI- New Deal Programs• GO• A) Between 1932 and

1939, FDR implemented dozens of programs.

• 1) If one was ineffective, that quickly tried something new

• B) SEC- Securities Exchange Commission- Federal Agency that polices the stock market looking for abuses and cheaters.

• C) FDIC- Federal Deposit Insurance. The government insures every bank account up to 200,000 dollars.

• 1) This prevents runs on the banks.

• D) Social Security Act- Citizens pay into a trust fund (type of savings account) during their working years.

• 1) Money in the fund is paid out to older citizens when they retire (65).

• 2) This retirement fund keeps seniors no longer able to work from becoming destitute.

• a) Destitute- unable to afford food and shelter

• E) The programs of the New Deal prevent economic conditions from getting worse.

• 1) They also help prevent future economic catastrophes

• 2) The nation’s economy will remain stagnant until 1941.