2. Boom Roaring Twenties –Materialism –Spending –Prosperous

3. Bust Great Depression –Stock Market Crash –Banks Fail – Fed took no action –Foreclosures –High Unemployment

4. Trickle Down vs. Pump Priming “IT’S ON!!!”

5. Hoover vs. FDR Two approaches to the Great Depression.

6. Herbert Hoover Conservative approach. Rugged Individualism. Believes in the Business Cycle. Philanthropist – charity work for those who need it.

7. Business Cycle Prosperity Recession Trough Recovery Prosperity

8. Hoover – Trickle Down Give-A-Job campaign Limited government hand-outs Limited public works programs R.F.C. - Reconstruction Finance Corporation - Provided $2 Billion in aid to Banks, Insurance Companies Railroads, and other Big Businesses

9. Trickle Down Theory Businesses Jobs People Spend Money Recovery R.F.C. – $2 Billion

10. Roosevelt – New Deal FDR’s Plan to provide relief to Americans. The Brain Trust helps FDR develop the Alphabet Soup programs.

11. Keynesian Economics  Government must be involved in economy to keep it safe.  To get out of Economic Depression, a government must spend money.  Deficit Spending is needed. John M. Keynes British Economist

12. Recovery Business Expands People Spend Money Work Relief & Direct Relief Programs “Pump Priming” $$$

13. What do we have today? Does this work?