Unformatted text preview: Hoover and Hard Times 1920s: Business, Business, Business “Among the nations of the earth today, America stands for one idea: business. National opprobrium? National opportunity. For, in this fact is, potentially, the salvation of the world… What is the finest game? Business. The soundest science? Business. The truest art? Business. The fullest education? Business. The fairest opportunity? Business. The cleanest philanthropy? Business. The sanest religion? Business. Edward Earle Purinton, “Big Ideas from Big Business,” (1921) The Rise of Big Business Boom industries: automobiles, oil, construction Corporate consolidation: oligopolies and big banks Decline in union membership and the rise of welfare capitalism Bluecollar workers suffer Access to Credit Republican Ascendancy and the End of Progressive Reforms Election of 1928 Herbert Hoover (Rep.) Al Smith (Dem.) – Runs on 4 Ps: Prosperity, Prohibition, Personal Prestige, and Protestantism – Irish Catholic, from NYC, connections to political machines 1928 Electoral College Map Herbert Hoover: “The Great Engineer” Reasons for the Crash
1. 2. 3. Overproduction: factories were producing more than Americans could consume Under consumption: people were not consuming as much as they wanted to Stocks: when demand goes down, production gets cut > less production = less workers > less workers = less spending > less spending = decline in stock prices The Crash Alphabet Soup: Hoover and FDR Respond to the Crash Hoover Responds Recap: Causes of the Crash
– – – – Hoover’s Problem is Himself Official Response:
– – – – Overproduction Underconsumption European Depression Technological Unemployment Problems with Hoover’s Plan Federal Farm Board HawleySmoot Tariff Reconstruction Finance Corporation Volunteerism Bread Lines March of the Bonus Army FDR to the Rescue? Biography Official Response:
– – – – – – Bank Holiday Fireside Chats End of Prohibition AAA NIRA Alphabet Soup The American Response Ordinary Americans Milo Reno Francis Townsend Charles Coughlin Huey Long The New Deal Problems: What the New Deal Did: – CourtPacking – Roosevelt Recession – Restores Faith in Capitalism and Democracy – Creates a New Political Coalition – Creation of New Safeguards Superman to the Rescue! Attack of the Martians! ...
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- Spring '08
- US History, Keynesian economics, underconsumption, Business. Edward Earle