 Herbert Hoover (Rep.) beat Al Smith (Dem.) ◦ Why? ◦ Nation going well economically, and the Republicans were in charge, so people figured, “Why change? Let’s keep Republicans in office”

 Great Depression begins in 1929  At first, Hoover ignores or underestimates depression: ◦ "While the crash only took place six months ago, I am convinced we have now passed the worst and with continued unity of effort we shall rapidly recover. " - President Hoover, May 1, 1930 ◦ “Gentleman, you have come sixty days too late. The depression is over." - Herbert Hoover, responding to a delegation requesting a public works program to help speed the recovery, June 1930  He also tries to keep government out of the economy ◦ says market will naturally rebound ◦ Relies on private volunteerism and charity  Later he gets government involved ◦ Hawley-Smoot tariff ◦ Programs to increase government loans to people and businesses ◦ Raises income taxes (largest peacetime raise in history) ◦ Mostly, however, these programs are too little, too late ◦ Unemployment rate is 25 percent by 1932

 Herbert Hoover v. Franklin Delano Roosevelt  Who will win? Why?  So… FDR wins easily (57-40 percent)… this is actually first election in 56 years where Democrat wins majority of popular vote

 Teddy Roosevelt was his 5 th cousin  Married Eleanor Roosevelt, who was Teddy’s niece (they were 5 th cousins, once removed)  Went to Harvard, but dropped out of Columbia Law School  Had a long-term affair with Lucy Mercer (Secret Service code name Mrs. Johnson)  Had six children with Eleanor; combined those children were divorced 15 times  Was Vice President candidate with James Cox in 1920, but they lost to Warren G. Harding  Contracted polio in 1921, which resulted in him being paralyzed from the waist down… but he tried to hide it  Started March of Dimes in 1938… originally to fight polio, but now with vaccine invented by Jonas Salk, charity focuses on improving health of babies  New York governor from  Would be elected president a total of 4 times, and died in office in 1945  22 nd amendment ratified in 1951, which set two-term limit for U.S. Presidents

 1. Do nothing ◦ What it is: Um…. Government does nothing ◦ Reasoning?  Economy naturally grows and shrinks, and will naturally fix itself ◦ Downside?  Does it really work if things are really bad?  2. Supply-side economics (Reaganomics) ◦ What it is: Government cuts taxes ◦ Reasoning?  This will encourage consumers to spend more and businesses to expand (or form) ◦ Downside?  You either have to cut government programs or the government has to run a deficit  Does it benefit rich more than poor? (or is there a trickle-down effect?)  3. Keynesian economics ◦ What it is: Government increases spending ◦ Reasoning?  This will create jobs, pump money into economy ◦ Downside?  You either have to raise taxes or the government has to run a deficit  Does this give the government too much power?

 New Deal = Roosevelt’s policies/plan for ending the Great Depression; uses Keynesian economic approach  The First Hundred Days = Just over three months after FDR took office; lots and lots of new programs put into place; includes bank holiday

 Relief, Recovery and Reform  Relief ◦ Short-term fixes to stop the “bleeding” of the economy ◦ Examples = creating jobs, giving money directly to people  Recovery ◦ “Priming the pump” ◦ Pumping money into economy to get it up and running again ◦ Examples = Loans to businesses, tax credits which allow people to spend more  Reform ◦ Long-term changes to prevent economy from collapsing again ◦ Examples = New laws, new regulations for businesses Relief Recovery Reform The Economy