hoover, the crash, and fdr zisk us history 1920s begin
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Hoover, Hoover, The Crash, The Crash, and FDRand FDR
Zisk US HistoryZisk US History
1920s begin...1920s begin...
Warren G. HardingWarren G. HardingRepublicanlower taxes, nat. debt
pro big business/ high tariffs
“America First”
“Ohio Gang”ScandalsDies in 1923 of a...
Silent Cal CoolidgeSilent Cal CoolidgeReservedHonestNo nonsenseconservativepro-business
1924 election1924 electionRep. CoolidgeDem. JW Davies (Al Smith)
New Prog. LaFollette
Post-war Eco.Post-war Eco.$ strongLoansGermany’s blank check $30+ billion
Dawes Plan 1924
Dawes PlanDawes Plan
U.S. economyU.S. economySilent Cal says ...“Business of America is business.”
“the man who builds a factory builds a temple”
““sick industries”sick industries”Coaltextiles growth = S S = P ($)
1928 election1928 election“I choose not to run”Rep. Herbert Hoover Sec. of Commerce
Dem. Al Smith the “Happy Warrior”
Campaign issuesCampaign issuesradio influential“rugged individualism” vs. welfare state of socialism
Prosperity
Hoover’s YearsHoover’s Years
“get rich quick”1929 Agricultural Marketing Act
Smoot - Hawley Tariff of 1930 (60%)
The CrashThe Crash unregulated stock market speculation
PEAK Oct. 24, 1929Black Tuesday, Oct. 29 Hits Bottom
What should government do?What should government do? 1933 25% unemployed Private efforts … soup kitchens,
bread lines Hoovervilles, Hobos Hoover’s action based on
American Individualism … associationalism and cooperative individualism
““Prosperity is just around the Prosperity is just around the corner”corner”
Urged the lowering of taxes Began public works projects Urged voluntary lower farm
production Reconstruction Finance Corp …
trickle down effect Bonus Army fiasco
Franklin Delano RooseveltFranklin Delano Roosevelt “I pledge myself to a new deal
for the American people” “The only thing we have to fear is
fear itself – nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance.”
First 100 Days …3 R’sFirst 100 Days …3 R’s Bank Holiday Relief, Recovery, Reform Glass-Steagall banking reform
FDIC NIRA …business cooperation on
production/prices, codes of fair competition, min. wage and max. hours, NRA “We do our part”
HOLC-Homeowners Loan Corp Federal Securities Act AAA-Agriculture Adjustment Act TVA-Tenn. Valley Authority … Sen.
George Norris Federal Emergency Relief Admin.
Harry Hopkins CWA-Civil Works Authority CCC-Civilian Conservation Corps
Success?Success?
Fireside Chats Brain Trust Rural Electrification Admin. WPA-Works Progress Admin. 1936 election … do you like
FDR?
Criticisms!!!Criticisms!!! Increase in power of Fed.govt. Increase in presidential power Loss of power to states/people Business restricted Supreme Court Huey Long’s “Share the Wealth” Fr. Coughlin and Townshend
Second New DealSecond New Deal
Wagner Act or National Labor Wagner Act or National Labor Relations Act 1935Relations Act 1935
Labor Unions have right to organize and bargain collectively
National Labor Relations Board
Social Security Act 1935Social Security Act 1935 system of old age insurance Paid by workers and employers 65 years = pension Unemployment insurance Care of children
Changing Democratic PartyChanging Democratic Party …
Always been heterogeneous but now …women, Hispanics, and African-Americans
“Black Cabinet” Mary McLeod Bethune
Unions … Fair Labor Standards Act 1938 40 hr week, min.wage
In the end …In the end … FDR never understood
economics…
1. Hoover had spent Govt.’s $$
2. FDR wanted balanced budget
3. 1937 “Roosevelt Recession”
4. 1938 Keynesian economics WAR Arsenal of Democracy
The Importance …The Importance … Forced a change in the
relationship between workers and employers
“Welfare State” power of Federal Government Fed’s presence in citizens’
lives
Power of state/local govts. American citizen’s freedom
and privacy Presidential power Deficit spending acceptable
idea “balancing of the human
budget”