• Bank Failures

• Stock Market Crash

• Farm Failures

• High Unemployment

• Limited welfare system and lack of relief agencies

•Income inequality

• Drop in home ownership

• Minorities hit the hardest and received the least amount of aid

President Hoover is unable or unwilling to provide relief for the

Great Depression…

• Born in 1882 to a wealthy and prominent family

• Raised to believe that wealthy should look after the poor

• Believed government’s primary role was to respond to social need

•Stricken with Polio in 1921 (at the age of 39 years) – public did not know

• President for 12 years during the two of the nation’s biggest crises -Great Depression and WWII

• Only President elected for 4 terms

• known to represent the “common man”

• ability to convey sympathetic concern for all

• Hoover was a Republican, FDR was a Democrat

• FDR Received 57% of popular vote and 472/531 electoral votes

•Landslide

•Democrats also won both houses of Congress

•Why important?

• FDR ran against Hoover on a “New Deal” campaign – a program that called on government to solve the problems of the Great Depression

Blue States = Voted for Hoover

Red States = Voted for Roosevelt

• America had “nothing to fear but fear itself”

•Fireside Chats•http://www.youtube.com/watch?v=jt9f-MZX-58

•About 3 minutes…

• The New Deal Programs would provide

• Relief: short term plan to give money directly to the people to ease immediate suffering

• Recovery: designed to stimulate production and restore the economy- in other words, get poor back on their feet

• Reform: long term plan to insure that another depression would not occur

• “100 Days”

• in FDR’s first 100 days in office he pushed 15 pieces of legislation through Congress to fight the Depression

• he focused on stabilizing financial institutions, providing relief, creating jobs, and regulating the economy

•in other words, government would tinker with economy to help end the depression

•Gov would not fully run the economy or own businesses

• EXAMPLE: day after taking office he declared a “bank holiday” (banks were closed so no one could withdraw their money) & government inspected banks to determine when they could re-open

New Deal Programs Alphabet Soup

• Agricultural Adjustment Act (AAA) – Pay farmers to halt production… food prices up

• Home Owners Refinancing Act – Gov provides money for people who can’t pay their mortgages. – Keeps them from losing their homes

• Civilian Conservation Corps (CCC) – Put young men to work on public projects– Creating trails, cleaning up highways, paintings in public

spaces – Tennessee Valley Authority (TVA)

• Massive set of projects to modernize the Tennessee River Valley

• Dams created electricity, etc. • Massive public works project

(continued)

• National Recovery Administration (NRA)– Group of government officials who ‘helped’

businesses keep production low and prices high

– Eased off competition in some areas of businesses

– Also supported unions and collective bargaining

• Collective bargaining? _____________________ _______________________________________

2nd New Deal

• At the end of his first term, as part of his campaign for a second term, FDR launched another set of programs to continue the economic recovery

• Federal Deposit Insurance Corporation (FDIC) – If a bank fails, the government will pay back deposits

• Securities and Exchange Commission (SEC) – Monitors and regulates the stock market

• Social Security • Workers pay taxes now that the gov uses to give

pensions to retirees

• ADD images from page 709