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End of the 1920s Election of 1928 – Coolidge not running for a second term. Hoover vs Smith Hoover vs Smith – Herbert Hoover Sec. of Commerce under Harding “Prosperity for everyone” “we are nearer to the final triumph over poverty…” – Alfred Smith Irish-Catholic-Democrat Triple Whammy

End of the 1920s Election of 1928 Biggest Issue of the 28 Election? Triple Whammy 21st Amendments repeals the 18 th, ending Prohibition 1933

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.”

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…

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

Debt vs. Deficit Government Spending ,000, ,000, ,000, ,000,000 (surplus) ,000,000 Military Social Programs – Health care – Welfare – Unemployment Education Yearly Spending Red = Govt spends more money than they make (deficit) Blue = Govt makes more money than they spend. (surplus) Debt from 2008 to ,000,000

The “Hoover” Depression Did little to – spur job growth – stimulate the economy – grant government relief. DEFICIT SPENDING Because he believed GOVT relief would contribute to DEFICIT SPENDING * Relief = Aid in any form given by govt to people. * Relief = Aid in any form given by govt to people.

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

Hoover looks bad Hunger MarchesHomeless & jobless petitioned Washington to “tax the rich”. Faced violence from police. Farmer’s RevoltsForeclosed farmers destroyed their crops hoping to drive up prices or prevent banks from profiting on their hard work Bonus MarchesWWI veterans asked for bonuses early. “Patman Bill” assembled in Washington. Hoover ordered army to break up the crowd.

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.

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

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.

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

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.

Presidency March Inauguration Day – US 25% – Most banks were closed Gold Standard = Bank Standards – 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.

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 Overall objective: to save capitalism

Sources of New Deal Ideas Brains Trust: specialists and experts, mostly college professors, idea men New Economists: government spending, deficit spending and public works, government should prime economic pump Roosevelt Cabinet: included conservatives, liberals, Democrats, Republicans, inflationist, anti-inflationists -- often conflicting, compromising, blending ideas

First New Deal ( ) Emphasis: reform Political Position: conservative Primary aim: economic recovery Philosophy: economic nationalism and economic scarcity (i.e., raise prices by creating the illusion of scarcity) Objectives: higher prices for agriculture and business Beneficiaries: big business and agricultural business

Second New Deal ( ) Emphasis: reform Political Position: liberal Primary aim: permanent reform Philosophy: international economic cooperation and economic abundance Objectives: increased purchasing power and social security for public Beneficiaries: small farmers and labor

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