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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Hoover believed that it was not the government responsibility to provide welfare.
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 472-59Bonus Army
Phew– That was a close one!
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 MarchLame Duck Amendment
Between March and June Roosevelt aggressively sought to enact legislation that would provide relief, stimulate the economy and provide jobs
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 pricesStill More Legislation
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.Still More Relief
Civil Works Administration (CWA) established to build roads, airports, etc.= 4 million employed
National Housing Act of 1934 established the Federal Housing Administration (FHA) which was established to improve housing conditions, insure mortgages and stabilize the real estate market.
Social Security System established to provide financial security to people who needed it.