1. Hoover v. FDR
Differences in Policy

2. Hoover Disconnected?
Oct 25, Hoover claims the foundation of nations industry is strong.
Oct 29, Stock Market Crashed
March 30, Hoover, “the worst effects of the Crash will pass in 60 days.”

3. Hoover’s Philosophy Believed: in “rugged individualism”
the idea that people succeed through their own efforts
in confidence economics “Prosperity is right around the corner.”
money given to business leaders would trickle down…

4. The “Hoover” Depression
Believed help should come from local governments
State
City
Red Cross
Salvation Army
Churches
Charity

5. Too little too late Voluntary efforts 1930
Encouraged business leaders to PLEDGE to stop slashing wages.
Only lasted a year
Public Works
Govt. financed building projects
Could not compete with the amount of jobs lost in public sector.
National Credit Corp
Govt money given to banks to keep lending.
Did not meet nations needs.
Reconstruction Finance Corp
Make loans to railroad, banks & farms
Emergency Relief & Construction act
Money given to states for relief & jobs
Not enough to fight effects of depression

6. Hoover looks bad Hunger Marches
Homeless & jobless petitioned Washington to “tax the rich”. Faced violence from police.
Farmer’s Revolts
Foreclosed farmers destroyed their crops hoping to drive up prices or prevent banks from profiting on their hard work
Bonus Marches
WWI veterans asked for bonuses early. “Patman Bill” assembled in Washington. Hoover ordered army to break up the crowd.
To many he seemed indifferent to the sufferings of the common man. Story about Andrew Mellon, Sec of Treas, for a nickel to call a friend.

7. Hoover’s Legacy Failed President
Lost to Roosevelt in ‘32 biggest landslide in US history.
Did more in govt relief than any president before him.
Depression & Bonus Marches looked bad in the eyes of Americans.

8. Roosevelt’s Philosophy
Expand the role of the Executive Office.
Create federal aide for unemployed
Promote work relief and create jobs that do not compete with private industry.
Abandoned the gold standard
Allow Fed reserve to manipulate value of the dollar

9. Franklin D. Roosevelt’s Appeal
In 1932 presidential election, FDR was perceived as a man of action.
Hoover was viewed as a “do-nothing president.”
Results: a landslide for Democrats and a mandate to use government as an agency for human welfare.
FDR wasn’t the unanimous choice

11. Situation When FDR Entered Office
In March 1933, the country was virtually leaderless and the banking system had collapsed.

12. FDR Restored Confidence
In his inaugural address, he said “The only thing we have to fear is fear itself….”
He promised vigorous leadership and bold action, called for discipline and cooperation, expressed his faith in democracy, and asked for divine protection and guidance.

13. Presidency March 4 1933-Inauguration Day First Hundred Days
US 25%
Most banks were closed
Economy in shambles
First Hundred Days
Sent dozens of BILLS to Congress
Congress passed 15 BILLS into ACTS of legislation (New Deal)
Set Precedent for future presidents.

14. Purposes of the New Deal
Relief: to provide jobs for the unemployed and to protect farmers from foreclosure
Recovery: to get the economy back into high gear, “priming the pump”
Reform: To regulate banks, to abolish child labor, and to conserve farm lands

15. Legacy New Deal did not end the Depression!
Balanced economic interests
New ROLE for Federal government
Safety net- safeguards for average Americans
Made govt too powerful