HIST 2112 Great Depression o 25 unemployment in 1932 Worst year o Worst depression in American and possibly world history A New Deal for America o FDR President in 1932 Was worshipped by the American people Most important president of the 20th century Changed the nature of American government o Liberalism idea that the government should flex its muscles for the creation of the conditions for social improvement o Modern liberalism came from the New Deal Herbert Hoover was president when the depression hit o 1929 o What caused the depression Possibly over production o Hoover was legendary for no response to the depression Was not a bad guy Worked for the Red Cross Well respected Republican o He believed the depression would work itself out Needed private charity Work with businesses Cut the wages Cut hours o Bail out the banks and businesses They will get back on their feet Then help the rest get back on their feet o Growing resentment against Hoover Hoovervilles were what people called poor communities The Bonus Army of 1932 o Bonuses for veterans o Vets want it early so they can buy food o Government didn t have their money o Camped out in Washington Crackdown on Bonus Army o Run out the veterans o Even though they already earned the money FDR has five agenda o First Relieve immediate suffering Get aid to people who really need it Federal Emergency Relief Act Gives money to the states Then gives money to the poorest of the poor Used to buy food Keep people fed and they won t rebel o Second Save the banks Had a lot of money loaned out at the start of the depression People could not pay it back after Have to use other people s money Everyone takes their money out because it is safer to have it on your person rather than in the bank Credit is gone Creates bank holiday o Forces 8 days of bank closures o Treasury sent people around to check the books of the banks o If they are healthy they can reopen o If not they will receive assistance until they are healthy o If so bad that there is no hope of recovery they will be shut down Increase the money supply Government said the banks were okay so people had confidence in the banks and put their money back in Gave more money to the banks FDIC says the government will cover each citizen of their money if the banks go under o Insurance for the people o Third Have to get factories working again Bring in National Recovery Administration NRA Was called Roosevelt s Buzzard The NRA was a club Members government business owners unions o Unions were powerless o Conversation between government and business owners Members voluntarily cooperate to set regulations in the industries together o Prices o Wages o Production levels Shut down by Supreme Court for being unconstitutional o Fourth Help the farmers FDR loved the farmers Agricultural Adjustment Act of 1933 Big plan of the New Deal to save the farmer Need to get prices up o Paid farmers not to farm o Raised prices substantially o Destroyed food already produced o Hurt sharecroppers Landowners no longer needed them since they were paid not to produce Only got half of the product of what was being produced o Fifth Make work programs Created jobs CCC paid people to cut trails o AT especially Works Progress Administration LeConte Hall is a WPA bulding TVA Tennessee Valley Authority o Built dams Conservatives did not like the New Deal o Felt it was too much too demanding o Thought it would lead to dictatorship Over blown but dictatorship was a real scare in this time