01:512:104 Lecture Notes - Lecture 25: Reconstruction Finance Corporation, Bonus Army, Roosevelt Franklin
Chapter 25 - The Great Depression and the New Deal, 1929-
1941
I. Introduction
The stock market crash in 1929 touched off a crisis that left 13 million
Americans unemployed by the time Franklin D. Roosevelt took office. The
New Deal transformed the United States, but the Great Depression ended
only with outbreak of World War II.
II. Hoover and Hard Times: 1929?1933
A. No Food, No Home
The deepening of the Great Depression left many Americans jobless and
often homeless. Deteriorating diets left many vulnerable to disease. The crisis
not only affected people in urban areas but caused great social disruption in
the farm community as well.
B. Farmers’ Holiday Association
The Farmers’ Holiday Association encouraged farmers to keep products off
the market to drive up prices.
C. Bonus Expeditionary Force
Fifteen thousand World War I veterans marched on Washington to support
immediate payment of cash bonuses, but the Senate refused.
D. Communists and Socialists
Communists led numerous protests against conditions in America, but they
gained few supporters. Although the Socialist Party fared somewhat better,
they won few election victories.
E. Hoover’s Response
At first, Hoover expressed hostility at calls for direct government relief. As
conditions worsened, however, he supported several federal responses to the
Depression.
F. Reconstruction Finance Corporation
The Reconstruction Finance Corporation aided businesses and state and
local governments. The effort to stimulate the economy from the top enjoyed
little success.
G. Hawley?Smoot Tariff
Hoover approved a tariff increase, believing it would protect American farmers
and manufacturers. Instead, the tariff further weakened the economy.
H. Hoover’s Traditionalism
Hoover continued to believe in a balanced budget, and he vetoed a variety of
relief bills.
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III. Franklin D. Roosevelt and the Election of 1932
A. Franklin D. Roosevelt
Franklin Roosevelt appealed to a broad spectrum of Americans, who admired
the optimism that he maintained despite his paralysis from polio.
B. Eleanor Roosevelt
Although shy as a young woman, Eleanor matured into a dynamic and
influential advocate of social justice.
C. Roosevelt’s “Brain Trust”
As Governor of New York beginning in 1928, Roosevelt responded vigorously
to the Great Depression. Roosevelt and his advisers believed in government
regulation of big business and in the need to create scarcity to save the
economy.
D. 1932 Election Results
Democrats carried the election handily in 1932. Economic troubles continued
during the four-month period between Roosevelt’s election in November and
his inauguration in March.
IV. Launching the New Deal and Restoring Confidence
A. Launching the New Deal
Congress convened in an emergency session, beginning the massive
legislative output of the First New Deal.
B. First Fireside Chat
On March 12, Roosevelt addressed the nation by radio, reassuring the people
that banks were again safe.
C. Beer-Wine Revenue Act
A deflationary measure, the Beer-Wine Revenue Act legalized the sale of low-
alcohol wines and beers and imposed taxes on those products.
D. Agricultural Adjustment Act
The AAA paid farmers to reduce production in exchange for government
subsidies.
E. Other Relief Measures
The CCC served as a jobs corps for young men; the Federal Emergency
Relief Act extended aid to state and local governments; and the Public Works
Administration was established.
F. National Recovery Administration
The National Industrial Recovery Act was the industrial cornerstone for the
New Deal. The wide?ranging law revealed the New Deal’s faith in national
economic planning.
G. TVA
The goal of the TVA was economic revitalization of the entire Tennessee
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Document Summary
Chapter 25 - the great depression and the new deal, 1929- The stock market crash in 1929 touched off a crisis that left 13 million. Americans unemployed by the time franklin d. roosevelt took office. New deal transformed the united states, but the great depression ended only with outbreak of world war ii. Hoover and hard times: 1929?1933: no food, no home. The deepening of the great depression left many americans jobless and often homeless. The crisis not only affected people in urban areas but caused great social disruption in the farm community as well: farmers" holiday association. The farmers" holiday association encouraged farmers to keep products off the market to drive up prices: bonus expeditionary force. Fifteen thousand world war i veterans marched on washington to support immediate payment of cash bonuses, but the senate refused: communists and socialists. Communists led numerous protests against conditions in america, but they gained few supporters.