HIST 2112- Great Depressiono 25% unemployment in 1932 Worst yearo Worst depression in American and possibly world history- A New Deal for Americao FDR President in 1932 Was worshipped by the American people Most important president of the 20th century Changed the nature of American governmento Liberalism – idea that the government should flex its muscles for the creation of the conditions for social improvemento Modern liberalism came from the New Deal- Herbert Hoover was president when the depression hito 1929o What caused the depression? Possibly over productiono Hoover was legendary for no response to the depression Was not a bad guy- Worked for the Red Cross Well respected Republicano He believed the depression would work itself out Needed private charity Work with businesses- Cut the wages- Cut hourso Bail out the banks and businesses They will get back on their feet Then help the rest get back on their feeto Growing resentment against Hoover ‘Hoovervilles’ were what people called poor communities- The ‘Bonus Army’ of 1932o Bonuses for veteranso Vets want it early so they can buy foodo Government didn’t have their moneyo Camped out in Washington- Crackdown on Bonus Armyo Run out the veteranso Even though they already earned the money- FDR has five agendao 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 tohave it on your person rather than in the bank- Credit is gone- Creates bank holidayo Forces 8 days of bank closureso Treasury sent people around to check the books of the bankso If they are healthy, they can reopeno If not, they will receive assistance until they are healthyo 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 hadconfidence 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 undero Insurance for the peopleo 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, unionso Unions were powerlesso Conversation between government and business owners- Members voluntarily cooperate to set regulations in the industries togethero Priceso Wageso Production levels- Shut down by Supreme Court for being unconstitutionalo 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 upo Paid farmers not to farmo Raised prices substantiallyo Destroyed food already producedo Hurt sharecroppers Landowners no longer needed them since they were paid not to produce Only got half of the product of what was being producedo Fifth Make work programs Created jobs- CCC paid people to cut trailso AT especially- Works Progress Administration- LeConte Hall is a WPA bulding- TVA (Tennessee Valley Authority)o Built dams- Conservatives did not like the New Dealo Felt it was too much; too demandingo Thought it would lead to dictatorship Over blown but dictatorship was a real scare in this