1. America is Ready for a Change

2. Hoover’s Strategy
After market crash, insisted confidence was needed to fix market.
Blamed it on world-wide economic problems and beyond anyone’s control.
Always insisted conditions would improve…

3. Voluntary Action Fails
1929 ( before the crash) Congress passed the Agricultural Marketing Act.
Goal was to establish a Federal Farm Board to stabilize the crop prices
Huge failure
Government began spending more on public works ( Hoover Dam)

5. Hawley-Smoot Tariff 1930 Highest import tax in history
European nations too raised their tariffs – slowdown in int’l trade.
Hoover suspended the Allies’ loan payments
Too late

6. Reconstruction Finance Corporation
Gave gov’t credit to a number of institutions
Large industries (R.R. and insurance companies)
Lent $$ to banks so they could extend loans
(Funded through the United States Treasury
During its years of existence, the RFC borrowed $51.3 billion from the Treasury, and $3.1 billion from the public.
*existed through WWII* )

7. Hoover’s Support Declines Further
As the nation slipped deeper into the Depression, Hoover stood by his belief in private enterprise
He was against public welfare and relief programs at the federal level should be up to states.

8. John Maynard Keynes (British economist)
Massive gov’t spending would help a collapsing economy & encourage private spending and production.
(General Theory of Employment
Interest and Money)

9. 20th Amendment Called the Lame Duck Amendment
Shortened the time between the day a president was elected and the day he took office.
Moved from March 4th to January 20th