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Herbert
Hoover and
the Great
Depression
Reviewing	the	“Crash”
• Buying	on	the	Margin	-	
purchasing	an	asset	(ex.	
stock)	with	only	a	down	
payment	and	=inancing	the	
rest	of	the	purchase	with	a	
loan	that	uses	the	asset	as	
collateral.		
• When	purchasing	stock	from	
a	broker(seller)	with	a	down	
payment,	the	remainder	of	
the	stock	is	still	possessed	by	
the	broker	as	a	form	of	
collateral	until	the	full	
payment	is	made.
Reviewing	the	“Crash”
• 1928	-	American	stock	
market	was	soaring	with	
peak	levels	of	trading.	
• March	1929	-	Hoover	
enters	the	presidency	as	
one	of	the	most	popular	
presidents	in	recent	
history.	
• Oct	29,	1929	-	Black	
Tuesday	-	uncertain	
stock	speculation	leads	
to	16	million	shares	
being	dumped	($30	
billion)
Hoover	“the	Great	
Engineer”
• Background:	
• Successful,	self-made	
millionaire	by	40	
• Quaker	upbringing	-	
industrious,	independent,	
humanitarian.
• Spent	his	youth	in	the	mining	industry	and	as	a	
result,	supported	labor	unions	and	mining	
regulations.	
• During	the	Great	War,	he	voluntarily	organized	
international	relief	efforts	saving	millions	of	
lives	in	Europe.	“the	Great	Humanitarian”
Hoover	=ights	the	Great	
Depression
• Hoover	believed	in	the	moral	compass	
of	the	people.	He	felt	businesses	
would	willingly	help	their	workers.	
“Volunteerism”	or	voluntary	
cooperation	
• He	also	felt	that	the	government	
should	limit	its	involvement	with	
regards	to	the	individual.	“Rugged	
Individualism”	
• Agricultural	Marketing	Act	-	June,	
1929	-	prior	to	the	“crash”	Hoover	
attempted	to	=ix	a	decade	long	
agricultural	slump.
Hoover	=ights	the	Great	
Depression
• Hoover	was	adamant	that	it	was	
not	the	government’s	role	to	
substitute	for	voluntary	
cooperation.		
• Nov.	1929	-	summons	leaders	in	
American	industry	to	develop	a	
plan	going	forward.	
• Federal	Reserve	System	in	Dec.	
1929	-	eased	credit	in	an	effort	to	
continue	business	growth.	
• Embarked	on	a	major	construction	
program	including	the	Boulder	
Dam	(later	renamed	Hoover	Dam)	
-	private	industry	driven
Hoover	=ights	the	Great	
Depression
• Hawley-Smoot	Tariff	-	1930:	
tariff	established	the	highest	
protection	on	American	
businesses	of	60%	import	tax	
• Intended	to	increase	revenue	
and	protect	American	
industry	
• Asked	by	leading	economists	
to	veto	the	legislation	but	
Hoover	does	nothing.
Hoover	=ights	
the	Great	
Depression
• Federal	Home	Loan	Bank	Act	-	
set	aside	money	to	bail	out	and	
protect	the	mortgage	industry.	
• Reconstruction	Finance	
Corporation	-	1.5	billion	set	
aside.	Given	primarily	to	large	
businesses	as	emergency	loans.	
• Taxpayer	funded	
• “Great	Scrooge?”
The	Bonus	
Army
• Summer	of	1932	-	WWI	
veterans	wanted	Congress	to	
move	up	the	payment	of	their	
war	bonus	from	1945	to	1932.		
• 20,000	veterans	assembled	on	
the	capital.		
• Hoover,	upset	by	their	
presence	and	the	inability	of	
police	to	handle	the	situation,	
ordered	the	US	Army	to	take	
care	of	things.		Gen.	Douglas	
MacArthur
“thank	God	we	
still	have	a	
government	
that	knows	
how	to	deal	
with	a	mob”	-	
Hoover
FDR and the New
Deal 1932-1936
Election	of	1932
Election	of	1932
• FDR	brought	optimism	-		
• Campaign	song	“happy	days	are	
here	again”		
• Sold	people	on	change	and	a	
better	future.		
• Hoover	was	perceived	as	cold	and	
uncaring.	
• he	stayed	at	the	White	House	to	
deal	with	the	economy	
• “The	Worst	is	Past	Us”	
• Hoover’s	failure	ends	the	“party	of	
Lincoln”
Election	of	1932
• Easy	victory	for	FDR	
• Enters	of=ice	with	no	
speci=ic	plan	to	=ix	the	
economy	but	promises	
change	and	a	“new	deal”	
between	government	and	
the	public.	
• 2/3	of	senate	and	3/4	of	the	
house	were	democrats	-	
giving	FDR	unprecedented	
control
FDR’s First Inaugural
Address, 1933
I am certain that my fellow Americans expect that on my
induction into the Presidency I will address them with a
candor and a decision which the present situation of our
people impel. This is preeminently 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. In every dark hour of our national life a
leadership of frankness and vigor has met with that
understanding and support of the people themselves
which is essential to victory. I am convinced that you will
again give that support to leadership in these critical days.
Launching	the	New	Deal
• FDR’s	=irst	task	upon	taking	of=ice	was	to	
stem	public	panic	over	the	failed	banking	
system		
• “restore	con=idence”	
• “bank	holiday”	-	closes	all	banks	for	4+	
days	until	the	Emergency	Banking	
Act	can	be	passed.		
• Economy	Act	looked	to	balance	
budgets	through	governmental	budget	
cuts	and	pension	reform	for	the	Army	
• Legalized	the	manufacturing	of	low	
alcohol	beer	-	will	lead	to	21st	
Amendment	repealing	all	prohibition.
Launching	the	
New	Deal
• FDR	used	his	upbeat	and	
optimistic	personality	to	lift	
up	the	American	people	in	
the	beginning	of	the	Great	
Depression.	
• used	“Fireside	Chats”	and	
informal	press	
conferences	as	a	means	to	
connect	and	uplift	the	
average	American.
FDR	acts	quickly
•The	First	Hundred	Days	-	From	March	to	June	1933	
•15	pieces	of	legislation	were	passed	
•Federal	Government	drastically	increases	
•Economy	Act	-	balanced	the	budget	by	cutting	
government	salaries	and	military	pensions.	
• 1933	Glass-Steagall	Banking	Act	-	established	
Federal	Deposit	Insurance	Corp.	
• 1933,		Agricultural	Adjustment	Act	(AAA)	-	
allowed	leading	farmers	in	respective	industry	to	
regulate	farm	production	with	government	
assistance.		
• In	addition,	FDR	pushed	for	“rural	
electri=ication”	
• 1934	-	Securities	and	Exchange	Commission	-	
disclosure	of	stock	exchanges.
Tennessee	Valley	Authority	
1933,		a	public	works	program	set	up	to	build	a	series	of	dams	for	
power	in	the	Tennessee	Valley.Created	200,000	jobs
The	New	Deal	
under	attack	
• FDR’s	New	Deal	
plan	while	
popular	with	the	
American	public	
was	viewed	by	
political	
opponents	as	a	
dangerous	
expansion	of	
governmental	
power.
• Three	major	critics	
(beyond	
Republican	
congress	members)	
• American	
Liberty	League	
• Townsend	Plan	
• Share-Our-
Wealth	Society
Three	Fiery	Critics
1.	Charles	Coughlin	-		
•Conservative	Catholic	priest.	
•used	his	weekly	radio	show	
“Golden	Hour	of	the	Little	
Flower”	to	reach	40	million	
listeners		
•anti-communist,	anti-capitalist,	
anti-semitic	
•viewed	FDR’s	administration	as	
wasteful	and	too	slow
Three	Fiery	Critics
2.	Dr.	Francis	Townsend	-	
from	LBC	
•“Youth	for	work,	Age	for	
Leisure”	
•$200	pension	per	month	for	
people	over	60	funded	by	
income	tax.	
•Money	had	to	be	spent	that	
month	to	stimulate	the	
economy
Plan	leads	to	Social	Security	
Pension	under	FDR
Three	Fiery	Critics
3.	Huey	Long	-		
•most	powerful	New	Deal	critic	
•slogan	was	“Every	man	a	king,	but	no	one	
wears	a	crown”	
•pushed	for	a	redistribution	of	wealth	to	
the	poor
•$5000	homestead	credit	allowance	to	all	American	families	
•$2500	guaranteed	annual	income	for	all	Americans	
•Free	college	education
Three	Fiery	Critics
3.	Huey	Long	
•By	1935	Long’s	Share-Our-
Wealth	clubs	had	7	million	
members	
•September	1935	assassinated	
by	former	political	opponents	
son-in-law
Supreme	Court	battles
• FDR’s	greatest	
resistance	came	from	
the	nation’s	judicial	
system	which	ruled	
several	programs	(AAA,	
NRA	and	attempts	at	
TVA)	
• “Court	Packing”	FDR	
proposed	a	plan	to	
appoint	a	new	judge	for	
every	judge	over	70	
years	old.	The	idea	was	
to	boost	ef=iciency	of	
the	legal	system.
The	Second	New	Deal
• By	1935,	FDR	was	looking	to	build	
upon	the	100	days	programs.	
• National	Labor	Relations	Board	
• Industrial	Unionism	
• Federal	Welfare	
• Social	Security	and	unemployment	
insurance	
• Theory	of	Keynesian	Economics	-	John	
Maynard	Keynes
The	Second	New	Deal
• Soil	Conservation	and	
Domestic	Allotment	Act	
-	paid	farmers	to	stop	
producing	soil	depleting	
crops.		
• $1	billion	dollars	was	
loaned	out	to	tenant	
farmers	to	purchase	their	
land.	Ownership	was	
viewed	as	a	pathway	to	
stability.
The	Second	New	Deal
• Works	Progress	Administration	
-	heavily	invested	in	job	creation.		
• From	1935	to	1943	provided	
work	for	8	million	people.	
• WPA	developed	over	850	
airports;	651,000	miles	of	
roadway;	and	125,000	public	
buildings.	
• WPA	also	paid	artists,	
photographers,	and	
musicians	to	continue	to	
work.	
Victor Arnautoff's “City Life"
Maxine Albro “Agriculture in
California”
“Migrant Mother” 1936
Why do you think this
image was so influential
in gaining support for
FDR’s programs?
Dorothea Lange Photos
Thomas Hart Benton “America Today”
The	Second	New	Deal
• Wagner	Act	-	reestablished	
the	power	of	unions	to	
bargain	with	management.		
• Helps	establish	Fair	
Labor	Standards	Act		
• Fair	Labor	Standards	Act	
• Est.	a	minimum	wage	(25	
cents	in	1938)	
• Max.	hours	per	week	at	40	
• Restricted	employment	
below	16
Social Security Act, 1935
•The most lasting and
influential of the 2nd New
Deal Programs.
•Provided insurance for retirees
65 and up - Social Security
•Unemployment compensation
- for workers who could not
find work.
•Aid to families with dependent
children and the disabled.
Limits	and	Legacies	of	the	New	Deal
• New	Expectations	of	the	Government	
• Government	is	expected	to	provide	
the	citizen	with	help	in	times	of	
need/crisis	
• Idea	of	a	“Broker	State”	
• Programs	still	in	existence	today:	
• SEC,	FDIC,	TVA,	Social	Security,	Fed.	
Housing	Administration.	Fair	Labor	
Standards	Act,	implements	a	
minimum	wage,	and	Wagner	Act	
strengthens	unions.
Limits	and	Legacies	of	the	New	Deal
• The	New	Deal	and	Minorities	
• Blacks,	asian	and	hispanic	populations	see	existing	prejudices	
reinforced.	Minorities	and	immigrants	are	blamed	for	lack	of	
work.	Weakened	assimilation	and	encouraged	ethnic	
communities.	
• The	New	Deal	in	the	West	and	the	South	
• Failure	to	challenge	Jim	Crow	
• Legacy	in	the	West		
• The	New	Deal	and	the	Economy	
• Failure	to	achieve	recovery	
• Federal	Welfare	State	established
1934-1937
• Ranchers and farmers in the nineteenth
and early twentieth centuries,
aggressively exploited the land and set
up the region for ecological disaster.
• The drought is the worst ever in U.S.
history, covering more than 75 percent
of the country and affecting 27 states
severely.
• Emergency Relief Appropriation Act,
which provides $525 million for drought
relief, and authorizes creation of the
Works Progress Administration, which
would employ 8.5 million people
• By 1940, more than 2.5 million people
had fled from the regions affected by
the Dust Bowl. Nearly 10 percent
moved to California
• The drought and erosion of the Dust
Bowl affected 100,000,000 acres
1
9
3
0
s
C
u
l
t
u
r
e
Culture
•Steinbeck - The Grapes of Wrath
He was seen by some as socialist for his
sympathetic portrayal of the poor and
impoverished.
•Empire State Building is constructed
in 1931
•Lou Gehrig and Joe DiMaggio were
national icons throughout the 1930s
•Seabiscuit - working class hero of 1930s
•1935 Parker Brothers releases Monopoly
•1937 Amelia Earhart goes missing after
attempting to fly across the world
Culture
•Theodore Geisel (Dr.
Suess)
•Dale Carnegie - How to
Win Friends and Influence
People was top selling book
of 1936
•Swing music was popular
•“It don’t mean a thing
(if it ain’t got that
swing)”
•Duke Ellington,
Benny Goodman,
Glenn Miller and
George Gershwin
Culture
•“Brother, Can You Spare
a Dime”
•“The Star Spangled
Banner” 1931 and “God
Bless America” 1938
•Mount Rushmore
completed by Gutzon
Borglum
•Grant Wood - “American
Gothic”
•Frank Lloyd Wright -
“Falling Water”
Culture
•“Brother, Can You
Spare a Dime”
•“The Star Spangled
Banner” 1931 and
“God Bless America”
1938
•Mount Rushmore
completed by Gutzon
Borglum
•Grant Wood -
“American Gothic”
•Frank Lloyd Wright -
“Falling Water”
•Movies, in the late 30’s are seen by about 65% of the American public.
•“Golden Age” of film
•Clark Gable, Bette Davis, Greta Garbo, Fred Astaire and Shirley
Temple
The Golden Age of Film
•85 million viewers per week (total pop was 123)
Attended Movies at Least Once per Week
- “Snow White and the Seven Dwarfs 1937”
- “The Wizard of Oz 1939”
- “Gone with the Wind, 1939”
The Golden Age of Film
Radio - by late 1930’s radios
were owned by 90% of
American Households
Beset by deep anxieties and
insecurities, many Americans in
the 1930s hungered for heroes:
like Superman and Batman;
tough, hard-boiled detectives
like Dashiell Hammett; and
radio heroes like "The Lone
Ranger" or "The Shadow."
1936 - “The Aliens are coming!!”
A radio show prank done by Orson Wells to promote the
book “The War of the Worlds” creates a huge scare.
Estimates of 1.7 Million people were disturbed.
Civil Rights
•Black Cabinet, by 1935 - 45 blacks
working in executive positions of New
Deal agencies
Mary McLeod Bethune - Anti Lynching
campaigns - worked with Eleanor
Roosevelt for social movements.
1939 Marian Anderson
Steps of Lincoln Memorial, 4/9/39
Sang National Anthem after being
rejected by the Daughters of the
American Revolution.
“No one can make you
feel inferior without
your consent.”
Jesse Owens, 1936
Olympics
“When I came back to my
native country, after all the
stories about Hitler, I couldn't
ride in the front of the bus. I
had to go to the back door. I
couldn't live where I wanted. I
wasn't invited to shake hands
with Hitler, but I wasn't invited
to the White House to shake
hands with the President,
either.”
1936 Olympics - In Nazi
Germany
Won 4 gold medals
Big Bill Broonzy lyrics
Black, Brown And White blues lyrics
This little song that I'm singin' about,
Brother, you all know that it's true,
If you're black and gotta work for livin',
Now, this is what they will say to you,
They says: If you was white,
You's alright,
If you was brown,
Stick around,
But if you's black, oh, brother,
Get back, get back, get back.
I was in a place one night,
They was all havin' fun,
They was all buyin' beer and wine,
But they would not sell me none.
They said: If you was white,
You's alright,
If you was brown,
You could stick around,
But if you's black, hmm, hmm, brother,
Get back, get back, get back.
Me and a man was workin' side by side,
Now, this is what it meant:
They was payin' him a dollar an hour,
And they was payin' me fifty cent.
They said: If you was white,
You'd be alright,
If you was brown,
You could stick around,
But if you's black, oh, brother,
Get back, get back, get back.

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