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Herbert Hoover's Election
Republican nominee Herbert Hoover was elected. Hoover easily convinced Americans he would improve the economy. When nominated Hoover predicted there would be a day, soon, where no American would live in poverty. He was wrong. -
Stock Market Crash
One of the last and most detrimental factors of the Great Depression, was the stock market crash. Caused by the overselling of stocks by the investors. Hoover was wrong in saying the only people who would be affected are stock trader. -
Hoovervilles
Huge banks and corporations faced bankruptcy, so they were unable to pay employees or guarantee bank deposits. Therefore, many Americans lost their jobs, and people soon began to lose their life savings as banks failed, people could not afford payments. The homeless soon built shantytowns, called Hoovervilles. Named after Hoover because he did not help the people at the start of the Depression. -
Hawley-Smoot Tariff
Hoover kept opposing any federal relief, believing they violated the idea of "individualism". Before long, Hoover began a few farm assistance programs and supported federal works projects. Hoover also rose tariffs in hopes of helping American businesses. The Hawley-Smoot Tariff was the highest protective tariff in America's history. -
Bank Failures
More than one-third of banks in America have failed by now. Long lines of people wanting to withdraw all their money from the banks were very common. Many people lost their life savings when the banks failed. -
Federal Emergency Relief Administration
Federal Emergency Relief Administration (FERA), was created by Congress on behalf of Hoover. This provided government money to bail out large companies and banks... but only companies who could possibly pay back the money later. -
Glass-Steagall Act
Hoover played a key role in the passing of the Glass-Steagall Act, which limited activities of commercial banks, in hope of stabilizing the banking sector (financial assets to be used to create more wealth, regulated by government agencies). -
Reconstruction Finance Corporation
The RFC authorized the lending of money to private companies. At this time the federal government appropriated millions of dollars for America's first relief and public works. -
Election of Franklin D. Roosevelt
Hoover had made a costly mistake in his handling of the Bonus Expeditionary Force, mainly because of the ordering of the troops to expel the World War I veterans which killed many people. Though by this time Hoover secured the Republican nomination, FDR who promised relief payments to the unemployed won election. -
Fireside Chats
At the beginning of Roosevelt's first term, Roosevelt had many "fireside chats", which were broadcasted all over the radio, where Roosevelt reassured the public that the banks were again secure. Soon after, millions redeposited the savings they withdrew earlier. The banks were then on their way back up, and could contribute to the economic recovery. -
First Hundred Days
Roosevelt quickly called Congress to a session to work out a plan of recovery. The "First Hundred Days", as it is called, was how long the relief lasted and during this time the government initiated major programs correlating to the first New Deal. -
Help for the Farmers
Farmers were overproducing, which in turn dropped prices. Roosevelt, therefore, put into place the Agricultural Adjustment Act, which provided payments to farmers in return the farmers agreed to cut production. The payment money came from increased taxes on food processors. -
Success
On the other hand, the first New Deal was seen as a success, economically and politically. In fact, the unemployment rate fell and wages grew. The following year Democrats, in the midterm elections, increased their majorities in the House and Senate. -
Some Criticism
At the end of the first Hundred Days, some were not pleased. Conservatives disliked the higher taxes and the government's increase of power. On the other hand, "leftists" argued Americans were still too poor to feed themselves. -
Second New Deal
Roosevelt first established the Emergency Relief Appropriation Act, which later enacted the Works Progress Administration. The WPA generated millions of jobs that enabled people to find steady work. -
Second Hundred Days
Started in summer of 1935, it is called the Second Hundred Days because of the amount of legislation surpassed the amount from the First Hundred Days. During this Roosevelt passed legislation which punished businesses for anti-union policies. This also created Social Security Administration to provide retirement benefits. Congress also increased taxes on the wealthy. -
Court Packing
The Supreme Court started slowly dismantling some of the programs from the first New Deal in a series of cases. Once they struck down on the Agricultural Adjustment Act, Roosevelt decided to attempt to pack the court with justices who supported him. He planned on increasing the number from 9 to 15, which was too much for Democrats and especially Republicans. Roosevelt would then be criticized for trying to gain too much power. -
Roosevelt Re-election
A new Democratic coalition swept Roosevelt back into office with a sweeping victory. -
Recession
The economy headed towards a recession mainly because Roosevelt felt the New Deal was doing it's job, so he cut back government programs to balance the budget. At the same time the Federal Reserve Board tightened credit supply to slow inflation. Both resulted in not enough circulation of money. -
War?
Soon Roosevelt began to realize a war in Europe was underway, therefore, he had to withdraw some money from the New Deal program to fund the military. -
Franklin D Roosevelt Dies
At the age of 63, Roosevelt suffered a cerebral hemorrhage in his brain after being president for 3 terms and 83 days.
