The Great Depression

Wall Street Crash

The Wall Street crash happened in 1929 and forced America to fall into a serious economic depression. The crash was a result of overproduction of goods, unequal distribution of wealth, credit and the stock market and the Tariff Policy.

Hoover's Policies

Responding to Depression

At the time of the crash nobody could foresee how long the depression would last. In June 1930 President Hoover signed the Hawley-Smoot Tariff. This Tariff set tax increases from 31 to 49 percent on foreign policies. By 1931 conditions became worse and President Hoover proposed a suspension on the payment of international war debts called the Debt Moratorium. Germany and Britain accepted readily but France hesitated.

Domestic Programs

The Farm Board was originally created in 1929 before the stock market crash but became more prevalent to meet the economic crisis. The board was authorized to help farmers stabilize prices by temporarily holding surplus grain and cotton. The Reconstruction Finance Corporation also known as the RFC was a federally funded, government-owned corporation created by congress in 1932. Hoover reasoned that emergency loans from the RFC would help key businesses get back on their feet and eventually trickle down to smaller businesses and ultimately bring recovery to the economy.

Despair and Protest

Unemployed workers and improvised farmers decided to take direct action to battle the forces that seemed to be crushing them. In many communities, farmers banded together to stop banks from foreclosing ton their farms and evicting them from their homes. In the summer of 1932, a thousand war veterans marched to Washington D.C to demand immediate payment of bonuses promised at a later date. Two casualties were recorded in the mass protest.

The Election of 1932

The election was based on one question: Who could do a better job at ending the depression? Hoover or Roosevelt. Roosevelt came out on top as the victor. During the long period from election to inauguration Hoover offered to work with Roosevelt but Roosevelt declined, not wanting to have any of Hoover’s ideas. Congress in turn passed an amendment to shorten the length of the period from election to inauguration.

Landslide: A Portrait of President Herbert Hoover - Preview

FDR's New Deal

Franklin D. Roosevelt was the only child of a wealthy New York Family. he admired his cousin Theodore however Franklin was a Democrat. His philosophy was based on the 3 R's: Relief, Recovery, and Reform. Relief for people out of work. Recovery for businesses and the economy as a whole. Reform to of american economic institutions.

The Second New Deal

Relief programs such as Works Progress Administration and Resettlement Administration spent billions of dollars between 1935 and 1940 to provide people with jobs. In it first year of operation the WPA employed over 3 million men and women.

The National Labor Relations Act of 1935 also known as the Wagner Act guaranteed a worker's right to join and a union's right to bargain collectively. It also outlawed the business practices that were unfair to labor. the National Labor Relations Board was put in place to enforce the law and make sure worker's rights were protected.

The Second New Deal- The Roosevelts, WPA, and Society