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Herbert Hoover and the Great Depression
Reviewingthe“Crash”• BuyingontheMargin-purchasinganasset(ex.stock)withonlyadownpaymentand=inancingtherestofthepurchasewithaloanthatusestheassetascollateral.
• Whenpurchasingstockfromabroker(seller)withadownpayment,theremainderofthestockisstillpossessedbythebrokerasaformofcollateraluntilthefullpaymentismade.
Reviewingthe“Crash”• 1928-Americanstockmarketwassoaringwithpeaklevelsoftrading.
• March1929-Hooverentersthepresidencyasoneofthemostpopularpresidentsinrecenthistory.
• Oct29,1929-BlackTuesday-uncertainstockspeculationleadsto16millionsharesbeingdumped($30billion)
Hoover“theGreatEngineer”
• Background:
• Successful,self-mademillionaireby40
• Quakerupbringing-industrious,independent,humanitarian.
• Spenthisyouthintheminingindustryandasaresult,supportedlaborunionsandminingregulations.
• DuringtheGreatWar,hevoluntarilyorganizedinternationalreliefeffortssavingmillionsoflivesinEurope.“theGreatHumanitarian”
Hoover=ightstheGreatDepression
• Hooverbelievedinthemoralcompassofthepeople.Hefeltbusinesseswouldwillinglyhelptheirworkers.“Volunteerism”orvoluntarycooperation
• Healsofeltthatthegovernmentshouldlimititsinvolvementwithregardstotheindividual.“RuggedIndividualism”
• AgriculturalMarketingAct-June,1929-priortothe“crash”Hooverattemptedto=ixadecadelongagriculturalslump.
Hoover=ightstheGreatDepression
• Hooverwasadamantthatitwasnotthegovernment’sroletosubstituteforvoluntarycooperation.
• Nov.1929-summonsleadersinAmericanindustrytodevelopaplangoingforward.
• FederalReserveSysteminDec.1929-easedcreditinanefforttocontinuebusinessgrowth.
• EmbarkedonamajorconstructionprogramincludingtheBoulderDam(laterrenamedHooverDam)-privateindustrydriven
Hoover=ightstheGreatDepression
• Hawley-SmootTariff-1930:tariffestablishedthehighestprotectiononAmericanbusinessesof60%importtax• IntendedtoincreaserevenueandprotectAmericanindustry
• AskedbyleadingeconomiststovetothelegislationbutHooverdoesnothing.
Hoover=ightstheGreatDepression
• FederalHomeLoanBankAct-setasidemoneytobailoutandprotectthemortgageindustry.
• ReconstructionFinanceCorporation-1.5billionsetaside.Givenprimarilytolargebusinessesasemergencyloans.• Taxpayerfunded• “GreatScrooge?”
TheBonusArmy
• Summerof1932-WWIveteranswantedCongresstomoveupthepaymentoftheirwarbonusfrom1945to1932.
• 20,000veteransassembledonthecapital.
• Hoover,upsetbytheirpresenceandtheinabilityofpolicetohandlethesituation,orderedtheUSArmytotakecareofthings.Gen.DouglasMacArthur
“thankGodwestillhaveagovernmentthatknowshowtodealwithamob”-Hoover
FDR and the New Deal 1932-1936
Electionof1932
Electionof1932• FDRbroughtoptimism-
• Campaignsong“happydaysarehereagain”
• Soldpeopleonchangeandabetterfuture.
• Hooverwasperceivedascoldanduncaring.
• hestayedattheWhiteHousetodealwiththeeconomy
• “TheWorstisPastUs”
• Hoover’sfailureendsthe“partyofLincoln”
Electionof1932
• EasyvictoryforFDR• Entersof=icewithnospeci=icplanto=ixtheeconomybutpromiseschangeanda“newdeal”betweengovernmentandthepublic.
• 2/3ofsenateand3/4ofthehouseweredemocrats-givingFDRunprecedentedcontrol
FDR’s First Inaugural Address, 1933
I am certain that my fellow Americans expect that on my induction into the Presidency I will address them with a candor and a decision which the present situation of our people impel. This is preeminently the time to speak the truth, the whole truth, frankly and boldly. Nor need we shrink from honestly facing conditions in our country today. This great Nation will endure as it has endured, will revive and will prosper. So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself—nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance. In every dark hour of our national life a leadership of frankness and vigor has met with that understanding and support of the people themselves which is essential to victory. I am convinced that you will again give that support to leadership in these critical days.
LaunchingtheNewDeal
• FDR’s=irsttaskupontakingof=icewastostempublicpanicoverthefailedbankingsystem
• “restorecon=idence”
• “bankholiday”-closesallbanksfor4+daysuntiltheEmergencyBankingActcanbepassed.
• EconomyActlookedtobalancebudgetsthroughgovernmentalbudgetcutsandpensionreformfortheArmy
• Legalizedthemanufacturingoflowalcoholbeer-willleadto21stAmendmentrepealingallprohibition.
LaunchingtheNewDeal
• FDRusedhisupbeatandoptimisticpersonalitytoliftuptheAmericanpeopleinthebeginningoftheGreatDepression.• used“FiresideChats”andinformalpressconferencesasameanstoconnectanduplifttheaverageAmerican.
FDRactsquickly•TheFirstHundredDays-FromMarchtoJune1933
•15piecesoflegislationwerepassed•FederalGovernmentdrasticallyincreases
•EconomyAct-balancedthebudgetbycuttinggovernmentsalariesandmilitarypensions.
• 1933Glass-SteagallBankingAct-establishedFederalDepositInsuranceCorp.
• 1933,AgriculturalAdjustmentAct(AAA)-allowedleadingfarmersinrespectiveindustrytoregulatefarmproductionwithgovernmentassistance.
• Inaddition,FDRpushedfor“ruralelectri=ication”
• 1934-SecuritiesandExchangeCommission-disclosureofstockexchanges.
TennesseeValleyAuthority
1933,apublicworksprogramsetuptobuildaseriesofdamsforpowerintheTennesseeValley.Created200,000jobs
TheNewDealunderattack
• FDR’sNewDealplanwhilepopularwiththeAmericanpublicwasviewedbypoliticalopponentsasadangerousexpansionofgovernmentalpower.
• Threemajorcritics(beyondRepublicancongressmembers)• AmericanLibertyLeague
• TownsendPlan• Share-Our-WealthSociety
ThreeFieryCritics
1.CharlesCoughlin-
•ConservativeCatholicpriest.•usedhisweeklyradioshow“GoldenHouroftheLittleFlower”toreach40millionlisteners
•anti-communist,anti-capitalist,anti-semitic
•viewedFDR’sadministrationaswastefulandtooslow
ThreeFieryCritics
2.Dr.FrancisTownsend-fromLBC
•“Youthforwork,AgeforLeisure”
•$200pensionpermonthforpeopleover60fundedbyincometax.
•Moneyhadtobespentthatmonthtostimulatetheeconomy
PlanleadstoSocialSecurityPensionunderFDR
ThreeFieryCritics3.HueyLong-
•mostpowerfulNewDealcritic• sloganwas“Everymanaking,butnoonewearsacrown”
•pushedforaredistributionofwealthtothepoor
•$5000homesteadcreditallowancetoallAmericanfamilies•$2500guaranteedannualincomeforallAmericans•Freecollegeeducation
ThreeFieryCritics3.HueyLong
•By1935Long’sShare-Our-Wealthclubshad7millionmembers
•September1935assassinatedbyformerpoliticalopponentsson-in-law
SupremeCourtbattles• FDR’sgreatestresistancecamefromthenation’sjudicialsystemwhichruledseveralprograms(AAA,NRAandattemptsatTVA)
• “CourtPacking”FDRproposedaplantoappointanewjudgeforeveryjudgeover70yearsold.Theideawastoboostef=iciencyofthelegalsystem.
TheSecondNewDeal
• By1935,FDRwaslookingtobuilduponthe100daysprograms.
• NationalLaborRelationsBoard• IndustrialUnionism• FederalWelfare• SocialSecurityandunemploymentinsurance
• TheoryofKeynesianEconomics-JohnMaynardKeynes
TheSecondNewDeal
• SoilConservationandDomesticAllotmentAct-paidfarmerstostopproducingsoildepletingcrops.
• $1billiondollarswasloanedouttotenantfarmerstopurchasetheirland.Ownershipwasviewedasapathwaytostability.
TheSecondNewDeal
• WorksProgressAdministration-heavilyinvestedinjobcreation.
• From1935to1943providedworkfor8millionpeople.
• WPAdevelopedover850airports;651,000milesofroadway;and125,000publicbuildings.
• WPAalsopaidartists,photographers,andmusicianstocontinuetowork.
Victor Arnautoff's “City Life"
Maxine Albro “Agriculture in California”
“Migrant Mother” 1936
Why do you think this image was so influential in gaining support for FDR’s programs?
Dorothea Lange Photos
Thomas Hart Benton “America Today”
TheSecondNewDeal• WagnerAct-reestablishedthepowerofunionstobargainwithmanagement.• HelpsestablishFairLaborStandardsAct
• FairLaborStandardsAct
• Est.aminimumwage(25centsin1938)
• Max.hoursperweekat40• Restrictedemploymentbelow16
Social Security Act, 1935
• The most lasting and influential of the 2nd New Deal Programs.
• Provided insurance for retirees 65 and up - Social Security
• Unemployment compensation - for workers who could not find work.
• Aid to families with dependent children and the disabled.
LimitsandLegaciesoftheNewDeal
• NewExpectationsoftheGovernment• Governmentisexpectedtoprovidethecitizenwithhelpintimesofneed/crisis
• Ideaofa“BrokerState”• Programsstillinexistencetoday:
• SEC,FDIC,TVA,SocialSecurity,Fed.HousingAdministration.FairLaborStandardsAct,implementsaminimumwage,andWagnerActstrengthensunions.
LimitsandLegaciesoftheNewDeal
• TheNewDealandMinorities• Blacks,asianandhispanicpopulationsseeexistingprejudicesreinforced.Minoritiesandimmigrantsareblamedforlackofwork.Weakenedassimilationandencouragedethniccommunities.
• TheNewDealintheWestandtheSouth• FailuretochallengeJimCrow• LegacyintheWest
• TheNewDealandtheEconomy• Failuretoachieverecovery• FederalWelfareStateestablished
1934-1937• Ranchers and farmers in the nineteenth and early twentieth centuries, aggressively exploited the land and set up the region for ecological disaster.
• The drought is the worst ever in U.S. history, covering more than 75 percent of the country and affecting 27 states severely.
• Emergency Relief Appropriation Act, which provides $525 million for drought relief, and authorizes creation of the Works Progress Administration, which would employ 8.5 million people
• By 1940, more than 2.5 million people had fled from the regions affected by the Dust Bowl. Nearly 10 percent moved to California
• The drought and erosion of the Dust Bowl affected 100,000,000 acres
1 9 3 0 s C u l t u r e
Culture•Steinbeck - The Grapes of Wrath
He was seen by some as socialist for his sympathetic portrayal of the poor and impoverished.
•Empire State Building is constructed in 1931
•Lou Gehrig and Joe DiMaggio were national icons throughout the 1930s •Seabiscuit - working class hero of 1930s •1935 Parker Brothers releases Monopoly •1937 Amelia Earhart goes missing after attempting to fly across the world
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Culture•Theodore Geisel (Dr. Suess) •Dale Carnegie - How to Win Friends and Influence People was top selling book of 1936 •Swing music was popular •“It don’t mean a thing (if it ain’t got that swing)”
•Duke Ellington, Benny Goodman, Glenn Miller and George Gershwin
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Culture•“Brother, Can You Spare a Dime” •“The Star Spangled Banner” 1931 and “God Bless America” 1938
•Mount Rushmore completed by Gutzon Borglum •Grant Wood - “American Gothic” •Frank Lloyd Wright - “Falling Water”
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Culture•“Brother, Can You Spare a Dime” •“The Star Spangled Banner” 1931 and “God Bless America” 1938
•Mount Rushmore completed by Gutzon Borglum •Grant Wood - “American Gothic” •Frank Lloyd Wright - “Falling Water”
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• Movies, in the late 30’s are seen by about 65% of the American public.
• “Golden Age” of film
• Clark Gable, Bette Davis, Greta Garbo, Fred Astaire and Shirley Temple
The Golden Age of Film
• 85 million viewers per week (total pop was 123)
Attended Movies at Least Once per Week - “Snow White and the Seven Dwarfs 1937” - “The Wizard of Oz 1939” - “Gone with the Wind, 1939”
The Golden Age of Film
Radio - by late 1930’s radios were owned by 90% of American Households
Beset by deep anxieties and insecurities, many Americans in the 1930s hungered for heroes: like Superman and Batman; tough, hard-boiled detectives like Dashiell Hammett; and radio heroes like "The Lone Ranger" or "The Shadow."
1936 - “The Aliens are coming!!”
A radio show prank done by Orson Wells to promote the book “The War of the Worlds” creates a huge scare. Estimates of 1.7 Million people were disturbed.
Civil Rights• Black Cabinet, by 1935 - 45 blacks
working in executive positions of New Deal agencies
Mary McLeod Bethune - Anti Lynching campaigns - worked with Eleanor Roosevelt for social movements.
1939 Marian Anderson Steps of Lincoln Memorial, 4/9/39 Sang National Anthem after being rejected by the Daughters of the American Revolution.
“No one can make you feel inferior without your consent.”
Jesse Owens, 1936 Olympics
“When I came back to my native country, after all the stories about Hitler, I couldn't ride in the front of the bus. I had to go to the back door. I couldn't live where I wanted. I wasn't invited to shake hands with Hitler, but I wasn't invited to the White House to shake hands with the President, either.”
1936 Olympics - In Nazi Germany
Won 4 gold medals
Big Bill Broonzy lyrics Black, Brown And White blues lyrics
This little song that I'm singin' about, Brother, you all know that it's true, If you're black and gotta work for livin', Now, this is what they will say to you, They says: If you was white, You's alright, If you was brown, Stick around, But if you's black, oh, brother, Get back, get back, get back.
I was in a place one night, They was all havin' fun, They was all buyin' beer and wine, But they would not sell me none. They said: If you was white, You's alright, If you was brown, You could stick around, But if you's black, hmm, hmm, brother, Get back, get back, get back.
Me and a man was workin' side by side, Now, this is what it meant: They was payin' him a dollar an hour, And they was payin' me fifty cent. They said: If you was white, You'd be alright, If you was brown, You could stick around, But if you's black, oh, brother, Get back, get back, get back.
