1. Competing Visions for America
Hoover
Roosevelt
vs.

2. After reading the speech, what predictions might you make about how Hoover would respond to an economic crisis?

3. According to Hoover, what is the role of the federal government in economic affairs?

4. What was Hoover’s response to the depression?
Hoover’s Political Economy:
*Government to help business – “Trickle Down” to the American people
lower taxes
lower interest rates
supported state & local governments relief projects
reduce the size and cost of government
raise tariffs
Hoover on Relief:
In keeping with his unshakable faith in voluntarism, cooperation, and limited government,
Hoover supported the role of private charities like the Red Cross, Salvation Army, and
YMCA in providing direct aid to the people.
Any federal aid would go to state & local government for public works projects.
Hoover’s Efforts:
Smoot-Hawley Tariff (1930), which raised agricultural/industrial tariffs to historic levels and
further weakened the already crippled international trade with an unnecessary trade war.
Ended loans to Germany and later called for an 18-month debt moratorium.
Reconstruction Finance Corporation (RFC): designed to stabilize the nation’s financial
structures by providing credit to banks, RRs, insurance companies with goal of keeping
people working & improving international trade. (Hoped that it would “trickle down” to
smaller businesses.)
Rejected the demands of the “Bonus Army”

5. The Bonus Army Debacle

6. The Bonus Army Debacle

7. Why was this economic crisis different?
By 1929, the US > consumer economy
to maintain prosperity, people have to keep spending
problems leading to economic depression
Reduced consumer spending
Growing unemployment
High tariffs, which stifled international trade
By 1929, most Americans > URBAN
can’t retreat to a family farm (like the often did in the past)
to sustain this urban, consumer culture – urban employment was essential
urban destitution was quickly too much for private charities to address
International trade was critical to global economic prosperity
What’s new about the economy?
US is a consumer economy
personal debt was higher than ever before
the economy was connected to international trade more than ever before

8. Were changes in political thinking required to face this new economic crisis?.
A consumer economy required people to spend money. To have money, people
had to have jobs. The Government’s role (1) aid to sustain employment, (2)
provide employment if necessary.
Government must grow to adequately deal with the challenges of a modern
economy, urban challenges, and international diplomacy.
The government must establish a minimum standard of living to prevent
destitution.
*The Depression changed public perception of the economic role of the federal govt.

9. How did FDR’s Commonwealth Speech reflect new political thinking?

10. What was so appealing about FDR in 1932?