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Chapter 33: The New Deal and Its Legacy HO: The New Deal IntroName:________________________ Period:_______ Date:_____________

Objective: Students will explain the role of the United States government at the start of the Great Depression by completing a H.O.T. Box about Herbert Hoover.

Do Now:

Add a thought bubble to what each might be thinking to each of the following:

Franklin Delano Roosevelt (in the center) The Man Sitting in the Center A group of workers in the back.

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HOOVER’S RESPONSE TO THE GREAT DEPRESSION

The initial government response to the Great Depression was ineffective, as President Hoover insisted that the economy was sound and that prosperity would soon return. Hoover believed the basic need was to restore public confidence so businesses would begin to invest and expand production, providing jobs and income to restore the economy to health. But business owners saw no reason to increase production while unsold goods clogged their shelves. By 1932 investment had dropped to less than 5 percent of its 1929 level.

Convinced that a balanced federal budget was essential to restoring business confidence, Hoover sought to cut government spending and raise taxes. But in the face of a collapsing economy, this served only to reduce demand further. As conditions worsened, Hoover’s administration eventually provided emergency loans to banks and industry, expanded public works, and helped states offer relief. But it was too little, too late.

The epitome[definition] of a “self-made man,” Hoover believed in individualism and self-reliance. As more and more Americans lost jobs and faced hunger, Hoover asserted that “mutual self-help through voluntary giving” was the way to meet people’s needs. Private giving increased greatly, reaching a record high in 1932, but charitable organizations were overwhelmed by the enormous number of people in need. To many people, government assistance seemed the only answer, but Hoover was convinced that giving federal relief payments would undermine recipients’ self-reliance, and he resisted this step throughout his term.

Hoover and most of his Republican Party firmly supported protective tariffs to block imports and stimulate the American economy by increasing sales of American-made products. In 1930 they enacted the Hawley-Smoot Tariff, which established the highest average tariff in American history. This was a crushing blow to European economies, which were already sinking into depression. Other nations retaliated by raising their own tariffs. This action helped to worsen and spread the depression by choking off international trade. Between 1929 and 1932 the total value of world trade had declined by more than half.

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Contributed By:Robert S. McElvaine, B.A., M.A., Ph.D.Elizabeth Chisholm Professor of Arts and Letters and Chair of the Department of History, Millsaps College, Mississippi. Author of The Great Depression: America, 1929-1941.

"Great Depression in the United States," Microsoft® Encarta® Online Encyclopedia 2008http://encarta.msn.com © 1997-2008 Microsoft Corporation. All Rights Reserved.

© 1993-2008 Microsoft Corporation. All Rights Reserved.

Ch Gov’t Response to Economic Crisis HOT box NAME_______________________________

QUESTIONS:1. Why was Hoover’s initial response ineffective?2. What did Hoover believe was essential (most important) to restoring business confidence?3. What did Hoover finally do to help the economy that was “too little, too late”?4. How did European economies respond to the Hawley-Smoot Tariff?

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H.O.T. Response 1: Interpret: Why would Hoover create the Hawley-Smoot Tariff?________________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________

H.O.T. Response 2: Identify Problems: What challenges do you think caused Hoover to fail? ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________

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___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________

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H.O.T. Response 3: Evaluate: Was Hoover successful at all? Provide evidence to support your stance. ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________

H.O.T. Response 4: Make connections: Are any of Hoover’s programs used today? GIVE EVIDENCE to support your opinion. ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________

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