Hoover, Hoover, The Crash, The Crash, and FDRand FDR

Zisk US HistoryZisk US History

1920s begin...1920s begin...

Warren G. HardingWarren G. HardingRepublicanlower taxes, nat. debt

pro big business/ high tariffs

“America First”

“Ohio Gang”ScandalsDies in 1923 of a...

Silent Cal CoolidgeSilent Cal CoolidgeReservedHonestNo nonsenseconservativepro-business

1924 election1924 electionRep. CoolidgeDem. JW Davies (Al Smith)

New Prog. LaFollette

Post-war Eco.Post-war Eco.$ strongLoansGermany’s blank check $30+ billion

Dawes Plan 1924

Dawes PlanDawes Plan

U.S. economyU.S. economySilent Cal says ...“Business of America is business.”

“the man who builds a factory builds a temple”

““sick industries”sick industries”Coaltextiles growth = S S = P ($)

1928 election1928 election“I choose not to run”Rep. Herbert Hoover Sec. of Commerce

Dem. Al Smith the “Happy Warrior”

Campaign issuesCampaign issuesradio influential“rugged individualism” vs. welfare state of socialism

Prosperity

Hoover’s YearsHoover’s Years

“get rich quick”1929 Agricultural Marketing Act

Smoot - Hawley Tariff of 1930 (60%)

The CrashThe Crash unregulated stock market speculation

PEAK Oct. 24, 1929Black Tuesday, Oct. 29 Hits Bottom

What should government do?What should government do? 1933 25% unemployed Private efforts … soup kitchens,

bread lines Hoovervilles, Hobos Hoover’s action based on

American Individualism … associationalism and cooperative individualism

““Prosperity is just around the Prosperity is just around the corner”corner”

Urged the lowering of taxes Began public works projects Urged voluntary lower farm

production Reconstruction Finance Corp …

trickle down effect Bonus Army fiasco

Franklin Delano RooseveltFranklin Delano Roosevelt “I pledge myself to a new deal

for the American people” “The only thing we have to fear is

fear itself – nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance.”

First 100 Days …3 R’sFirst 100 Days …3 R’s Bank Holiday Relief, Recovery, Reform Glass-Steagall banking reform

FDIC NIRA …business cooperation on

production/prices, codes of fair competition, min. wage and max. hours, NRA “We do our part”

HOLC-Homeowners Loan Corp Federal Securities Act AAA-Agriculture Adjustment Act TVA-Tenn. Valley Authority … Sen.

George Norris Federal Emergency Relief Admin.

Harry Hopkins CWA-Civil Works Authority CCC-Civilian Conservation Corps

Success?Success?

Fireside Chats Brain Trust Rural Electrification Admin. WPA-Works Progress Admin. 1936 election … do you like

FDR?

Criticisms!!!Criticisms!!! Increase in power of Fed.govt. Increase in presidential power Loss of power to states/people Business restricted Supreme Court Huey Long’s “Share the Wealth” Fr. Coughlin and Townshend

Second New DealSecond New Deal

Wagner Act or National Labor Wagner Act or National Labor Relations Act 1935Relations Act 1935

Labor Unions have right to organize and bargain collectively

National Labor Relations Board

Social Security Act 1935Social Security Act 1935 system of old age insurance Paid by workers and employers 65 years = pension Unemployment insurance Care of children

Changing Democratic PartyChanging Democratic Party …

Always been heterogeneous but now …women, Hispanics, and African-Americans

“Black Cabinet” Mary McLeod Bethune

Unions … Fair Labor Standards Act 1938 40 hr week, min.wage

In the end …In the end … FDR never understood

economics…

1. Hoover had spent Govt.’s $$

2. FDR wanted balanced budget

3. 1937 “Roosevelt Recession”

4. 1938 Keynesian economics WAR Arsenal of Democracy

The Importance …The Importance … Forced a change in the

relationship between workers and employers

“Welfare State” power of Federal Government Fed’s presence in citizens’

lives

Power of state/local govts. American citizen’s freedom

and privacy Presidential power Deficit spending acceptable

idea “balancing of the human

budget”