New Deal.ppt - Franklin D Roosevelt and the New Deal...

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Franklin D. Roosevelt Franklin D. Roosevelt and the New Deal and the New Deal Redefined” Democracy: Redefined” Democracy: Political Rights Political Rights Economic Economic Security Security Social Justice Social Justice
Economic Collapse and Hoover s Response List and describe three major causes of the economic collapse of 1929, which led to the Great Depression of the 1930 s. Explain the initial response by the President Herbert Hoover to the economic collapse. How did that policy change during the course of his administration.
Causes of the Great Depression Agricultural overproduction Industrial overproduction Unequal distribution of wealth Over-extension of credit Margin and the Stock Market International economic situation Tariff Policy (Smoot-Hawley) Natural Free Market Cycle
How Herbert Hoover Dealt with the Crisis Conservative Republican that believed in private enterprise and “rugged individualism.” Role of government is NOT to interfere with the free market. Believed a natural cycle and will take time and patience. “Prosperity is right around the corner.”
Voluntary Measures Hoover eventually established two privately-funded organizations: The National Credit Association provided $1/2 billion to businesses for emergency loans, but it was too under-funded to do much good. The Organization for Unemployment Relief was a clearing house for relief agencies. However, state and local governments were already in too much debt to benefit from it.
Limited Government Intervention In the end, Hoover resorted to government intervention: The Reconstruction Finance Corp gave $1-1/2 billion in federal loans to banks, insurance companies, and industry to prevent bankruptcies, but it was too little, too late. The Home Loan Bank Act provided federal loans to homeowners to prevent foreclosures, but got bogged down in red tape.
“Rugged Individualism” and the Election of 1932 Hoover thought business should be self-regulating. “Laissez-Faire” He had a mania for a balanced budget. He lacked political finesse. Hoover becomes the scapegoat for the country. “Hoovervilles” to the “Bonus Army”
Franklin D. Roosevelt’s Appeal In 1932 presidential election, FDR was perceived as a man of action. Gov. of NY Hoover was viewed as a “do-nothing president.” Norman Thomas , the Socialist candidate, was viewed as a radical . Results: a landslide for Democrats and a mandate to use government as an agency for human welfare.
Situation When FDR Entered Office In March 1933, the country was virtually leaderless and the banking system had collapsed .
FDR Restored Confidence In his inaugural address, he said “The only thing we have to fear is fear itself….” He promised vigorous leadership and bold action , called for discipline and cooperation , expressed his faith in democracy, and asked for divine protection and guidance.
FDR’s Personal Qualities He was a practical politician who practiced the art of the possible.

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