22:3 Hoover and the Depression

Practice Questions pg. 691

Hoover’s Philosophy on the Role of Government in the Economy

• Facilitate voluntary cooperation between labor and management

• Opposed direct relief

• Believed in rugged individualism

“Rugged Individualism”

• Phrase coined by Hoover• Individual responsibility• Direct relief weakens “moral fiber”

1930s election

• Economy got worse• Democrats take control of House• Republicans maintain one vote lead in the

Senate• What does this reflect?

Hoover takes Action

• Federal Farm Board

• Federal Loan Bank Act

• Reconstruction Finance Corporation

• Public Works Project-Boulder Dam

Federal Farm Board

• Formed cooperatives

• Stored surplus grains and cotton

• Effort to raise crop prices

Federal Home Loan Bank Act 1932

• Created a Federal Bank that would lend to Private Savings and Loan Banks who would then lend to individuals to refinance their homes/farms

Reconstruction Finance Corporation

• $2 billion to banks, life insurance companies, and big businesses

• Trickle down economics

Boulder Dam

• Public Works project

• $700 million into circulation

Bonus Army

• 10-20,000 WWI Vets • Patman Bill voted down• MacArthur actions• Last nail in Hoover’s coffin

1932 Election

• Hoover’s economic policies ineffective• Democrat Franklin Delano Roosevelt elected

23:1 The New Deal

New Deal PlatformRRR

• Alleviate effects of depression through relief, recovery, and reform

• “The only thing we have to fear is fear itself”

Four Freedoms

FDR’s Brain Trust

• Pre-term advisors

Fireside Chats

• Radio addresses

• Bully pulpit

First 100 Days

• Special session of congress

• 15 pieces of New Deal legislation

Emergency Banking Relief ActEBRA

• Bank Holiday-banks closed to prevent withdrawals• Restore confidence in banks

Glass Steagall Banking Act 1933and the FDIC

• Federal Deposit Insurance Corp.• Federal insurance to private banks• $5000-$250,000, $400,000• Restore confidence in banks

Federal Securities Act and the SEC

• Securities Exchange Commission created

• Regulates stock market

• Restore confidence in stock market

National Industrial Recovery ActNIRA

• Ensure fair business practices and promote industrial growth

• Child labor laws, set prices and wages, unionization, etc.

Agricultural Adjustment ActAAA

• Paid farmers to lower production to raise prices

• controversial

Tennessee Valley AuthorityTVA

• Works project

• Flood control, hydroelectricity

• Impoverished Tennessee Valley

Civilian Conservation Corps

• Works project• Men 18-25• Building and conservation projects• $30 month/$25 home• controversial

Federal Emergency Relief Administration

• $500 in direct relief to needy and in indirect relief works projects

Public Works AdministrationPWA

• Created by the NIRA

• Gave money to states for public works projects

Civil Works AdministrationCWA

• Federal works projects including schools and teacher jobs

• Created 4 million jobs

Home Owners Loan CorporationHOLC

• Government loans to homeowners to prevent foreclosures

21st Amendment 1933

• Repealed 18th prohibition amendment• “What America needs now is a drink”~FDR