1/20: Hoover vs. FDR's New Deal

What role should the government play during a national crisis?

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Open Ended

Today is Inauguration Day! Did you watch this morning's ceremony and address? How are you feeling about the end of the 2nd 9 Weeks next Friday?

Poll

During a national crisis, is the US government responsible for providing for and protecting the well-being people of the American people?

• The gov should provide protection from external threat & direction in times of need but people are responsible for their basic needs and gov should not be overly involved in regulating the economy.

• The gov should enact emergency measures to ensure people have funds to survive and streamline access to basic needs (food, water, shelter).

If you said...

• gov response should be limited, you likely would have supported Republican President Herbert Hoover for re-election in 1932.

• gov response should be far reaching, you likely would have supported Democratic candidate Franklin D Roosevelt for President in 1932.

By the end of this lesson, you should be able to...

compare Hoover’s economic policies with FDR’s New Deal policies and evaluate the impact of New Deal legislation. (US.16D+18A)

Multiple Choice

In addition to rampant consumerism, the Roaring 20s saw a booming stock market thanks to widespread overconfidence in the continued growth of companies that resulted in...?

• the Dust Bowl

• overspeculation

• bank failures

Causes of the Great Depression

• Consumerism driving up company value while Americans accumulated debt

• Americans buying stocks on margin drove up company value but the investment $$ was really on loan

• Overspeculation that allowed Americans to invest in risky companies

During the Roaring 20s - from 1920 through 1928 - the stock market was booming.

Until October of 1929 when the stock market crash brought down the entire US economy.

Open Ended

Think back to last week -- how did the Great Depression impact Americans? How did people's lives change following the 1929 Stock Market Crash?

Multiple Choice

Which situation contributed to the problem described in this excerpt?

• Migration caused by racial discrimination during World War 1.

• Homelessness caused by unemployment during the Great Depression.

• Strict bank regulations made by the federal government during the New Deal.

• Rate increases imposed by the railroad industry during the Gilded Age.

Effects of the Great Depression

• High unemployment as consumer spending decreased, companies needed to produce less, & laid off workers

• Very limited amount of cash available as banks failed

• Overproduction of agricultural products meant farmers made no $ & couldn't pay their bills

Multiple Choice

Who was the US President when the Great Depression began in 1929 with the stock market crash?

• Teddy Roosevelt

• Woodrow Wilson

• Herbert Hoover

• Franklin D Roosevelt

Multiple Choice

What is a tariff?

• Tax on imported goods (products from foreign countries).

• Tax on exported goods (products being shipped to foreign countries).

Multiple Choice

Which of the following best completes this diagram?

• Led to a decrease in US international trade.

• Helped stabilize the US economy.

• Strengthened US relationships overseas.

• Led to a decline in US unemployment.

Hoover's Policies to end the Great Depression

• Smoot-Hawley Tariff - raised tariffs, decreased international trade, led to MORE BUSINESS FAILURES

• Creates the Reconstruction Finance Corporation in 1932 to provide loans to banks, businesses, & railroad companies by way of states

• Construction of the hydroelectric Hoover (Boulder) Dam to create jobs for thousands & generate electricity for Nevada, Arizona, & California

No Direct Payments to Americans or Veterans

• in 1924, Congress promised $1,000 bonus to WWI veterans to be redeemed in 1945

• in 1932, 43,000 demonstrators known as the BONUS ARMY marched in Washington DC demanding immediate payment of that bonus

• Army Chief of Staff thought this was a communist uprising & with permission of the President used troops & force to push out protestors

Multiple Choice

President Herbert Hoover championed rugged individualism and believed that the federal government -

• should play a limited role in the economy with relief coming from the state govs & companies in the long term.

• should play a central role in regulating the economy to provide immediate relief.

Hoover's Economic Response vs. FDR's Economic Response

Election of 1932

FDR Becomes President

• Farming problem: How to respond to overproduction by farmers while still ensuring farmers have enough $$ to pay bills

• Labor problem: How to put the most people back to work as quickly as possible

• Money problem: How to get more $$ in circulation without causing inflation ($ becoming worthless)

Your Independent Work

Read more about FDR's New Deal & answer the inserted questions in your copy of the Google Doc reading.

Open Ended

In your opinion, was President Hoover's limited government intervention or President FDR's massive government intervention the best response to the Great Depression? WHY?