1 / 48

The Hoover Administration

The Hoover Administration . Background: raised in Iowa by aunt and uncle Stanford graduate engineer; self-made millionaire believed in “rugged individualism” and laissez-faire economy

elom
Download Presentation

The Hoover Administration

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Hoover Administration Background: raised in Iowa by aunt and uncle Stanford graduate engineer; self-made millionaire believed in “rugged individualism” and laissez-faire economy made reputation with Belgian Relief Fund and Food Administration; Secretary of Commerce under Harding and Coolidge

  2. Causes of the Depression Economic depression had several causes • Overuse of credit; many people went bankrupt when jobs were lost. • Overproduction of goods, caused by credit buying; when buying stopped, inventories built up and people were laid off. • “Buying on the margin” – buying stock with only 10% down; when market fell, loans could not be repaid • Suspect banking practices, leads to bank failures when market crashes

  3. Causes of the Depression (cont.) • Too little money put into circulation by the Federal Reserve. • Massive farm problems; prices too low, foreclosures high • Tariffs too high between US and Europe; could not trade excess goods • Expectations of a downturn in the economy; when market started going down, people overreacted.

  4. October, 1929 “Black Thursday”- Oct. 24th, market falls at a record pace “Black Tuesday” – Oct. 29th, market falls almost to zero; billions of $$ lost, millions lost life savings

  5. The Depression Begins Characteristics of the Depression: homelessness, unemployment, despair Unemployment reaches 25%

  6. The Depression Begins Hoover sticks to laissez-faire as the depression worsens; blamed for inaction Unemployed line up for few available jobs

  7. “Hoovervilles” Charity lines

  8. Hoover’s Inaction Hoover opposes all government aid, favors private charity; why? Seen as uncaring and aloof Nation begins to demand action from government

  9. The Reconstruction Finance Corporation Hoover finally responds by creating the Reconstruction Finance Corp. (RFC); first “New Deal” style agency Designed to aid banks, businesses, and local govts. with low interest loans to generate activity RFC first agency designed to aid businesses; a prototype for FDR’s New Deal agencies later

  10. The “Bonus Army” July, 1932: WW I veterans march on Washington to demand early payment of promised war bonuses; Hoover rejects their demands. Why?

  11. The “Bonus Army” “Army” ordered to leave DC Marchers refuse to leave, camp out in Capitol

  12. The “Bonus Army” Hoover orders Gen Douglas MacArthur to remove Bonus Army camps; riots follow Hoover blamed for the violence

  13. 1932 Election Hoover reluctantly renominated; Democrats nominate NY governor Franklin D. Roosevelt

  14. 1932 Election FDR campaigns on optimism and govt. action on economy; wins in a landslide, worst defeat for an incumbent ever

  15. Franklin D. Roosevelt Background: TR’s 5th cousin and nephew-in-law former state legislator, asst. Secretary of the Navy 1920 VP candidate NY governor

  16. FDR and Polio Contracted polio in 1921; left paralyzed; spent rest of life in rehab Created illusion of “walking” by leaning on people, podiums, etc. Why?

  17. “The Hundred Days” This is pre-eminently 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. March 4, 1933: the inaugural speech of FDR

  18. “The Hundred Days” Emergency powers granted to FDR; employed the “brain trust” to take on problems of the Depression First crisis: the failure of the banks and “bank runs”

  19. “The Hundred Days” FDR declares a “Bank Holiday”, closes banks for a week to stop the bank runs First “fireside chat” to explain govt. actions Bank runs end Glass-Steagall Act: creates the FDIC

  20. The First New Deal (1933 – 35) No set plan, experimented with new programs to solve the Depression “Relief, Recovery, Reform” Focused on jobs and temporary relief

  21. The New Deal CWA First New Deal Programs: Civilian Works Administration Civilian Conservation Corps Public Works Administration CCC PWA

  22. The New Deal Economic Reforms: The Securities andExchange Commission The Wagner Act Joseph P. Kennedy, first head of the SEC Strike at Ford Motor Co, 1937

  23. The New Deal The Dust Bowl: agriculture in the Midwest and Plains catastrophic; foreclosures, drought cause dust storms Hardest hit states: Kansas. Oklahoma, Texas. Nebraska

  24. The New Deal Thousands move west The migration of the “Okies” Impact on economy Passage of the Agricultural Adjustment Act (AAA) Designed to aid farmers by paying some not to plant/limit livestock

  25. The New Deal The center of the New Deal: the National Industrial Recovery Act

  26. The National Industrial Recovery Act (NIRA) Most ambitious overhaul of the economy since WW I; used similar methods Attempt to organize economy into partnerships of management, labor, and govt. Creates “Codes of Fair Competition” Administered by the National Recovery Administration

  27. The National Industrial Recovery Act (NIRA) The Codes: anti-laws suspended, allows for cooperation within industries to set prices, wages, and production creates National Labor Relations Board to mediate disputes minimum wage set bans child labor allows for unionization sets maximum hours to 32 per week

  28. The New Deal Small businesses were exempt but encouraged to show their participation by posting the NRA sign; govt. uses WW I-style propaganda campaign to promote Act

  29. Problems with the Act Act fell short of accomplishing goal: some businesses did not maintain the Code hurt smaller businesses, could not compete many saw it as socialism and too pro-labor May 1935: Supreme Court declares it unconstitutional

  30. The End of the First New Deal Reforms have mixed results on the economy Positive: some improvement in employment, economy relief to most in need optimism returns as government attempts aid to people Negative: depression still present growing opposition from liberal and conservative forces Supreme Court strikes down many New Deal programs; i.e. NIRA, AAA

  31. Opponents of FDR Father Charles Coughlin: radio priest, criticized FDR for being too “socialist” Dr. Francis Townsend: advocated $2,000 annual pension for elderly; led to creation of Social Security Act (1935) Beginning of the “Second New Deal”

  32. Opponents of FDR Sen. Huey Long (D-LA) criticized FDR for not going far enough in reforms “Share Our Wealth” – confiscate all fortunes over $1m and redistribute it to all; guarantee of $5,000 yearly income Assassinated in Baton Rouge, Sept, 1935

  33. The Second New Deal (1935 -37) Focused on reforms and long-term security i.e. Social Security; the Wagner Act Centerpiece: the Works Progress Administration (WPA) Designed to create large-scale public works projects and provide employment to thousands Largest peacetime govt. expenditure

  34. The WPA Major works projects Largest program to date Employed thousands

  35. WPA and the Arts Art, literature, and music projects included in the WPA; first govt. support for the arts Kansas Cityfrom Politics, Farming, & the Law Thomas Hart Benton,1936

  36. WPA and the Arts The Annual Moveby Otis Dozier, 1936

  37. Construction of the Damby William Gropper

  38. Women of Flint, MIby Joseph Varak

  39. Travel Guides sponsored by the WPA

  40. Role of Eleanor Roosevelt Acted as FDR’s “eyes and ears”; major influence on New Deal proposals Led to inclusion of blacks in govt. programs; also created the WPA programs supporting the arts Controversial First Lady due to her active role in FDR administration

  41. 1936 Election FDR beats Alf Landon of Kansas like a red-headed step-child

  42. FDR vs. the Court “Nine old men” Supreme Court biggest obstacle in implementing New Deal legislation FDR tries to add six more Justices to create a Court more favorable to his proposals

  43. FDR vs. the Court Public reacts very unfavorably to plan; FDR loses popularity FDR stays with plan despite loss of support

  44. FDR vs. the Court FDR eventually withdraws plan, but too late to regain support for more New Deal plans Court begins to support New Deal programs, but the New Deal era comes to an end

  45. Positive: provided relief and temporary jobs for millions kept US from embracing radical movements; restored confidence in America ended laissez-faire as govt. policy Negative: only partially solved the Depression led to govt. deficits in peacetime led to growth of “Big Govt.” The Legacy of the New Deal

More Related