Objectives: Examine and evaluate the reaction to the crash. DO Now: What were the primary causes of the crash. FDR’s New Deal. 1929– 3 million unemployed, family income 2300 1932-12.5 million (25%), family income 1400 683,000 vagrants thrown off trains
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Objectives: Examine and evaluate the reaction to the crash
DO Now: What were the primary causes of the crash
FDR’s New Deal
WWI veterans were promised a 1000 dollar bonus that would mature in 45.
The Vets wanted their money early, hopped on empty train boxcars and headed for Washington.
20000 veterans and their families staged a protest at a camp at Anacostia Flats just southeast of the capital.
The Senate turned down their request
Troops were sent in led by Douglas MacArthur and George Patton to attack the encampment.
Tents and shack were torched and protesters were expelled. 100 injured and 1 infant killed.
Hoover and the republicans were voted out of office in 1932 in a landslide victory for the Democrats 472-59
Bonus Army– Attempt #1
1932– Hoover v Roosevelt
Phew– That was a close one!
Born into a wealthy family
Worried about super wealth and rift between rich and poor
Harvard, then Colombia Law
Rode on shirttails of cousin Theodore
Polio at age of 39 changed him into serious determined politician
Empathy for suffering
FDR was elected in November but was not inaugurated until March (This was normal)
Hoover could not get anything done because he did not have support anymore (Lame Duck)
As a result– “Lame Duck” Amendment (20th) that moved inauguration to January 20th
Nevertheless, FDR needed to wait till March
2nd Bonus Army march (a different reaction)
Immediate “Fireside Chats” to help restore hope
A “New Deal” – promises of “bold, persistent experimentation”
Federal Securities Act passed in May of 1933 required to provide financial information if they were traded publicly
Securities and Exchange Commission (SEC)followed which regulated the sale of stock on margin
July of 1933 FDR dropped the gold standard which increased money supply =inflation =lower value of dollar =more exports =higher farm good prices
What was the “New Deal”
Federal Emergency Relief Administration (FERA)– support agencies that provide support
Also provided a great deal of money to public works programs– Government funded projects to build bridges, buildings, sidewalks, dams, etc.
Drought and misuse of farmland led to Dust Bowl
Government responded by establishing SCS (Soil Conservation Service) to push more responsible farming methods (crop rotation, terracing and building barriers)