Hoover, FDR, and the Great Depression

1. Hoover, FDR, and the Great Depression

2. Herbert Hooverand Voluntarism

3. Herbert Hoover • Grew up in a poor family in a small Iowa town • Trained as a mining engineer • Ran U.S. Food Administration during WWI • Promoted government-business partnerships • Elected President as a Republican in 1928

4. “Voluntarism” (or “Volunteerism”) • People are responsible for helping themselves • No direct federal government aid for the poor • Communities should work together to help the poor • Keep the budget balanced – no deficit spending • Prosperity “trickles down” from businesses to everyone else

5. Hoover’s Policies – The Early Years • Asked business not to cut jobs or wages • Reduced taxes to boost consumer demand • Urged the wealthy to give to charity • Asked state government to increase aid for the poor • Constant optimism – tried to restore confidence in the economy

6. Problem: this didn’t work • Unemployment and homelessness continued to rise • Local governments and charities ran out of money • Hoover became increasingly unpopular • Hoovervilles = shanty towns • Hoover Houses = cardboard boxes • Hoover Heaters = campfires

7. Hoover’s Policies – The Later Years • Reconstruction Finance Corporation • Created 1932 • Provided loans to banks, railroads, big businesses • Exemplified trickle-down economics • Hoover Dam • Massive public works project on the Colorado River • Created jobs in a depressed area

8. The Bonus Army • After WWI, Congress promised cash payments to veterans in 1945 • The Depression left many veterans unemployed • Summer 1932: “Bonus Army” of 15,000 veterans marched to Washington, D.C., demanding immediate payment

9. The Bonus Army, continued • Bonus Army camps out in Washington • July 1932: Hoover orders evacuation of Bonus Army • July 28:U.S. Army forcibly evicts Bonus Army • Negative publicity destroyed Hoover’s re-election campaign

10. The 1932 Election • Why would Hoover be unpopular? • Economy still hasn’t recovered • People think Hoover hasn’t done enough • Bonus Army is terrible publicity • What do you think people are looking for? • More decisive, drastic action • Someone who understands them

11. FDR and the New Deal

12. Franklin Delano Roosevelt • Born into a wealthy, well-connected New York family • Disabled by polio in his forties • Elected president as a Democrat in 1932 • Promised a “New Deal” to solve the Depression

13. The country needs, and unless I mistake its temper, the country demands bold, persistent experimentation. It is common sense to take a method and try it. If it fails, admit it frankly and try another. But above all, try something. -FDR, 1932 How does this differ from Hoover’s philosophy?

14. Result: The New Deal • Date: 1933-1938 • Definition: series of ambitious federal programs with the goal of ending the Depression • Significance • Helped end the Depression and reduce unemployment • Radically expanded the government’s role in economic life

15. Principles of the New Deal • Relief – help the needy • Recovery – end the Depression • Reform – change the economy so that the Depression can’t happen again

16. Fireside Chats • Date: 1933-1944 • Series of radio addresses by FDR on national issues and proposed laws • Significance • Helped build support for New Deal programs • Encouraged Americans to feel closer to the President

17. Fireside Chats • How does FDR use the radio to gain the trust of his listeners?

18. New Deal Policies • Federal Deposit Insurance Corporation (FDIC) • Tennessee Valley Authority (TVA) • Civilian Conservation Corps (CCC) • Federal Housing Administration (FHA) • National Recovery Administration (NRA) • Public Works Administration (PWA) • Works Progress Administration (WPA) • Social Security Administration (SSA)