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Herbert Hoover Inaugurated As President
On this day, Herbert Hoover was inaugurated as the 31st president of the United States. In his inaugural address, he covered his aspirations for America and touched on investigating the federal system, government involvement in business regulation, removal of poverty, education, public health, and the US's stance in international politics: Link text -
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The "Black" Week and The Stock Market Crash
Over the course of several days, the US stock market declined and crashed, resulting in a loss of $16 billion. The crash resulted from over-speculation in stock and the prevalence of buying stock on margin, putting many investors in significant debt. This crash would be one of the primary cause of the Great Depression. A newspaper describes the disaster here: Link text -
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The Bank Runs and Failures of The 1930s
Over the course of the decade, many people lost faith in the banking system and became very insecure about their investments. As a result, many customers participated in bank runs, where people would flood into banks all at once to withdraw their money, resulting in bank failure. Approximately 9,000 banks would fail during this time. Link text -
Passage of The Smoot-Hawley Tariff Act
Hoover signs the Smoot-Hawley Tariff Act, raising tariffs on 900 agricultural imports by 40-48%. It intended to aid farmers hurt by the Dust Bowl in the West, but in practice it only raised food prices for struggling American families and sparked international retaliation, shrinking US trade. Global trade fell 65%. Link text -
Creation of the Reconstruction Finance Corporation
Hoover approved the formation of the Reconstruction Finance Corporation. It's goal was to prevent further financial failures and provide relief to banks by lending a total of $2 billion. Unfortunately, the program wasn't very effective because of its transparency (the public could see what banks requested loans, causing investors to worry when a bank asked for help). Link text -
Franklin D. Roosevelt Inaugurated As President
Franklin D. Roosevelt was inaugurated as the 32nd president, marking a turn around in the Great Depression and beginning the "First 100 Days" in which Roosevelt initiated legislative activity to save the US economy. Link text -
Emergency Banking Act
Roosevelt passed the Emergency Banking Act after a four day banking holiday. The act expanded presidential authority over the banking system and intended to restore the confidence of the nation in the banking system by allowing banks to reopen only once deemed financially sound. Link text -
The First New Deal Programs: CCC, CWA, HOLC, NIRA, and TVA
The first year of Roosevelt's presidency was packed with legislative action. The Civilian Conservation Corps, Civil Work Administration, Homeowners' Loan Corporation, National Industrial Recovery Act, and Tennessee Valley Authority were among some of the most important acts. They generally lead to job formation, infrastructure construction, and helped with refinancing. Link text -
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The First New Deal
From 1933-1938, FDR launched a series of programs collectively known as the "New Deal" that aimed to stabilize and rejuvenate the US economy in the wake of the Great Depression. The programs' central goals were "relief, recovery, and reform". Link text -
Social Security Act
Roosevelt passed the Social Security Act to provide aid to the elderly, disabled, and low-income families. It was another critical and famous addition to FDR's extensive repertoire of legislation concerning the Depression. The SSA remains relatively unchanged to this day. Link text -
FDR Inaugurated For The Second Time
After achieving great success in his first term, Roosevelt was easily re-elected to serve a second term in the presidency. The next four years of his presidency would continue most of his New Deal programs, albeit with less dramatic consequences. Throughout his time in office, FDR had continuously lowered unemployment but steadily increased the national debt. Link text -
Emergence From The Great Depression
After 1938, not much New Deal legislation was passed and the US began to emerge from the dark time of the Great Depression just as WWII was brewing in Europe. Link text
