2. The Election of 1932

3. Voluntary Action Fails Hoover believed that voluntary action by U.S. businesses was the best way to end the economic crisis. – Business leaders promised to maintain wages, but eventually they had to cut workers’ pay.

4. Charities and State & Local Gov’ts Hoover wanted state and local governments to handle relief, but their programs never had enough money. Private charities & local officials could not meet the demands for relief.

5. Congress passed the highest import tax in history. – It backfired when European countries raised their own import tariffs. – International trade quickly slowed down. Hawley-Smoot Tariff

6. Reconstruction Finance Corporation (RFC) Hoover gave gov’t credit ($$$) to banks to help banks from failing. Theory - help those at the top and it will benefit the economy as a whole. – Americans saw the gov’t helping bankers while ordinary people went hungry. Even though the RFC tried to help banks, the banks failed.

7. Hoover’s Unpopularity Grows Americans blamed Hoover and the Republicans for the economic crisis. Hoover believed that direct fed’l relief would destroy people’s self-respect & create a large bureaucracy. His refusal to help brought bitter public reaction & negative publicity.

8. Government Actions As hardships continued & criticisms increased, Hoover took a more active approach. – Gov’t tried to create jobs by spending more on public works projects. Hoover finally let the RFC lend the states money for unemployment relief. – It was too little and too late.

9. Bonus March Bonus Army – 20,000 jobless WWI veterans marched on Washington demanding immediate payment of a pension bonus that was promised. Bonus March was generally peaceful, but a few violent incidents prompted Hoover to call in the military. – Military decided to use force to get the marchers out of Washington. – Many people were injured.

10. Bonus March

11. Franklin D. Roosevelt (FDR) Franklin D. Roosevelt (FDR), a democrat, was willing to experiment with governmental roles. Though from wealthy background, he had genuine compassion for ordinary people (probably because of his disability - polio). FDR’s “New Deal” – As governor of NY, he set up the 1st unemployment commission and a relief administration to help the poor during the Depression. – FDR promised the country similar programs if elected president.

12. Confidence and optimism were needed to overcome the Depression. “You Have Nothing to Fear But Fear Itself” - FDR

13. Different Philosophies of Gov’t 1.Those who believed that the fed gov could not and should not try to fix people’s problems. 2.Those who felt that large-scale problems required the government’s help.

14. Comparing Hoover & FDR Hoover – Voluntary aid FDR – Gov’t control of business

15. 1932 Election Results FDR won by a wide margin. – Urban workers, coal miners, & immigrants of Catholic & Jewish descent voted for him. – Other people voted for FDR because it was against Hoover & the Republican policies.

16. Pres. Roosevelt (FDR) “We have nothing to fear but fear itself.” Very determined to succeed despite handicap. Surrounded himself with gifted people. Spoke of hope and courage

17. Expanding the Role of the Fed Gov’t Americans viewed the fed gov differently. – People now looked to the gov for support.

18. Map Interpretation: 1928 & 1932 Presidential Elections

19. Chart – Comparing Hoover & FDR