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Hoover, FDR, and the New Deal. Objective Question: How did Hoover and Roosevelt deal with the Depression? Extra Credit tonight! 3:30-6pm in Shillinglaw . Alternative is on website. Both are due Friday !!! No late work admitted!!!.
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Hoover, FDR, and the New Deal Objective Question: How did Hoover and Roosevelt deal with the Depression? Extra Credit tonight! 3:30-6pm in Shillinglaw. Alternative is on website. Both are due Friday!!! No late work admitted!!!
Warm-Up: In hard economic times, people try to protect themselves from additional hardship by cutting back on consumption. Why would such prudent measures for individuals make people worse off overall during the Great Depression?
What steps did President Hoover take to end the Depression? • Had a laissez-faire attitude: Government should not interfere in economics. • persuade cities, states and churches to provide volunteer relief • ask factories and businesses to keep going if at all possible • cut his own salary by 1/5 as an example • tried to relax the high tariff, but Congress refused • near end of term, spent $2 billion on roads, buildings and other public construction and provided loans to companies and banks
Why did Hoover's plans fail? • too much emphasis on volunteerism • refused to give direct aid to the people • Hoover lacked charisma • got a bad reputation due to the Bonus Army
What was the Bonus Army? • 15,000 WWI veterans march outside D.C. summer 1932 • -Wanted cash bonus promised from gov. for fighting • -Supposed to collect in 1945, but vets need now • Senate voted down the bill to give their bonuses early -not enough money • Hoover asked protesters to leave, but several stayed • Fearing violence, Hoover called in army to break them up (used tear gas, a few killed, many injured, shantytowns set on fire) • Many Americans outraged at govt. treatment of veterans
Who won Election of 1932? Why? • Franklin Roosevelt (FDR) (ran against Hoover) Why? • people were desperate to try someone new • he had charisma • didn't promise solutions, but said would search for possible answers
Identify the following: a. New Deal - nickname given to FDR's plan to end the Great Depression. Keynesian Economics: Government spending programs increase employment Deficit Spending: Government spends more than income (to stimulate economy)
Objective Question: Was the New Deal a success or a failure? All extra credit due Friday!!!
b. Hundred Days - the first 100 days of FDR's administration - lots of New Deal programs passed c. 3 "R's" - Relief - immediate assistance Recovery -get back to pre-depression economy Reform - make changes so won't happen again d. Brain Trust - diverse group of informal advisers who gave new ideas to FDR for ending Depression e. Alphabet Soup - nickname for FDR's new programs - used acronyms for many (CCC/WPA) f. Fireside Chats - informal radio talks by FDR
Banking Changes • Bank Holiday - closed all banks until were checked out to see if stable • FDIC - Federal Deposit Insurance Corporation - guaranteed bank deposits up to $5,000
What were FDR's biggest accomplishments in the 30's? • lifted nation's spirits with upbeat personality • avoided extreme change while providing more government control
Objective Question: Was the New Deal a success or a failure? HW: Study for the unit exam on Wednesday!
Was the New Deal a success or a failure? Write one full paragraph on a blank sheet of paper with an answer with your evidence to support your statement.
Court-Packing Plan • FDR’s plan to increase # of justices on Supreme Court 1937 • Court had been ruling his New Deal plans unconstitutional. • FDR wanted a new justice (who liked the New Deal) for each previous justice over 70 years old (could have 6 total) • This legislation never passed, would stack the court in his favor (court-packing) • Chief Justice Roberts switched his vote to favor New Deal • -Called “The switch in time that saved nine.”