Hoover, FDR and the New Deal Flashcards
When did Herbert Hoover become President and what was the Tariff he was known for??
1928 - An Election against NY Governor and DEMOCRAT (Hoover was a Republican) Al Smith. Hoover wins in a LANDSLIDE.
The Tariff:
the Hawley-Smoot Tariff of 1930 which was probably one of the worst pieces of legislation in US history:
• Biggest tariff in US peacetime history.
• Raised tariff from 38.5 to nearly 60%.
• Foreign nations outraged.
• Seemed to be a declaration of economic warfare.
• Helped push the world toward depression - rather than JUST America
• Played into the hands of rising Nazism in Germany.
How did Hoover Want to ‘deal with the Depression’?
Believed in Laissez-Faire and Rugged Individualism - Government should interfere as LITTLE as possible
Therefore many actions he and his Government DID take were too small to make an impact - e.g. Made $300 million available to help unemployed - but only $30 million was actually spent
Who did Hoover face in the 1932 Election and what were the Campaigns like?
Herbert Hoover faced Franklin Delano Roosevelt (FDR) in the 1932 Election.
Hoover ran on the idea that ‘Prosperity was just around the corner’ and that the Government did not have to act to respond to the Depression - despite unemployment increasing every year since 1929.
FDR proposed a ‘New Deal’ - massive government reforms based on the Three R’s: Relief, Recovery and Reform
What was the result of the 1932 Election?
FDR (Franklin Delano Roosevelt) won in a Landslide - an even LARGER margin of Victory than Hoover had in 1928.
FDR was an excellent public speaker and had been making as many as 15 speeches a day. FDR also used Radio to reach a NATIONAL audience and as President this became routine and known as ‘Fireside Chats’ that FDR used to speak directly to the voters.
What was FDR’s first Act as President?
In March of 1933 (Elected in November, he was not IN POWER until March of 1933) the first Act as President was the EMERGENCY BANKING ACT.
FDR closed all banks for ‘inspection’ and they only re-opened if they were ‘honest and well run’. When this happened Public Trust was restored and the Banking Industry recovered. This allowed loans to be given out to Private business and therefore was a boost to the economy - this was the first move in the CYCLE OF RECOVERY
What is an ‘Alphabet Agency’?
This was a nickname given to the New Organisations FDR and the New Deal created.
Examples include:
HOLC- Home Owners Loan Corporation - which assisted people struggling to pay their mortgages
NRA - National Recovery Administration - designed to help workers and employers negotiate to end strikes and create unions
AAA- Agricultural Adjustment Agency - Paid farmers to produce less- this helped stabilise prices by increasing demand.
Who was opposed to the New Deal?
The Rich- to pay for the New Deal, FDR raised taxes on the wealthy
Business Owners- Many felt that the New Deal gave too much power to the workers, limiting their profits
Republicans - TWO reasons: One, it was a Democratic plan so they of course opposed it and TWO: It was literally the COMPLETE opposite of small and uninvolved government - it was NEW and had never been done before and MUST therefore be terrible
The Supreme Court: Republicans had been appointing the court for the last 12 years so many members were ‘Conservatives’ and didn’t like the Changes to Government power that the New Deal created - they struck down some New Deal Laws and Agencies as ‘unconstitutional’ - such as the AAA
NOTE: Democrats would be in power from 1932 to 1952 and appoint a new Supreme Court in that 20 year span. It was THIS Democratic-Appointed Supreme Court that would ‘start’ the Civil Rights movement with ‘Brown vs Board’ in 1954. YAY! EXTRA learning!
Was the New Deal Effective?
Yes. But also No. It did Achieve SOME of the Three R’s - Relief, Recovery and Reform.
Examples: The New Deal created jobs. For example, 2.5 million 18-25 year-olds got to work in the CCC.
Banks: 1932 saw 4000 bank failures. When FDR started to work as president in 1933 the number of bank failures dropped to well below 250.
But also the New Deal was limited - it did not do ENOUGH to end the Depression- only make it less severe.
Examples:
In 1930 3 million days were lost to strikes. 1932, this rose to 15 million. By 1934, 20 million days were lost to strikes. These figures can often show how satisfied workers are, less strikes = happier workers.
After his re-election in 1936 FRD grew worried about the increasing cost of his job creation schemes like the TVA. He cut down the amount of spending, but this resulted in unemployment jumping to 3 million.
In 1936, thousands of workers went on strike in the car and steel industries. They were campaigning for better wages and conditions
What did the TVA do and Why is it a Good Example of an Alphabet Agency?
Tennessee Valley Authority (TVA). This scheme brought hydro-electric power to seven states in the Tennessee Valley, one of the worst affected areas of the country. Dams and power-plants were built, creating many jobs.
Why is it a Good Example?
Relief: It brought Jobs and therefore WAGES to a poverty stricken area
Recovery: The TVA enriched the area it covered and immediately created a Cycle of Recovery and eventually a Cycle of Prosperity
Reform: Government had NEVER tried anything as ambitious as this - the area covered Seven States so only the Federal Government could force all 7 to co-operate. Of course Republicans were against it- but in ALL the years since the New Deal the TVA has NEVER been ended/repealed and in fact now MAKES money for the Federal Government. This Reform is something that prevented the issues of mass poverty in the region from arising again.
The TVA Solved the problem, helped the people and was a PERMANANENT change to the area.
Let me put it this way: Learn about the TVA - very useful
What were the Three R’s?
covered on other cards - but you REALLY REALY REALLY need to know this
The Three R’s were FDRs goals to achieve through New Deal Policies.
Relief: Help the victims of the Depression. Millions of ordinary Americans faced unemployment, hunger, and poverty. Roosevelt was determined to help them.
Recovery: Encourage economic recovery. The Depression was a disaster for America. Roosevelt knew that he had to take action to encourage recovery, to get the nation back to work.
Reform: Reform the economic system. The whole economic system would have to be altered so that there would never again be a Depression as bad as the 1930s.
To achieve these objectives, Roosevelt decided that direct action and intervention by the federal government would be necessary. The days of laissez-faire, of the government doing as little as possible, were over.
