1. FDR v. Hoover
Aim: How did Herbert Hoover’s plan to solve the problems of the Great Depression differ from FDR’s plan?

2. Hoovers Response Fails
At first, Hoover felt that government should not interfere.- Laissez Faire Economics
Thought of this as a downswing of the business cycle.
Asked for volunteerism.
For business leaders not to cut prices and wages
Told the government to simultaneously reduce taxes, lower interest rates, and create public-works programs.
Called for a policy of localism
Asked local government to provide more jobs and relief programs.

3. Hoover Adopts More Activist Policies
Adopted the policy of trickle-down economics.
Government would provide loans to bankers so they in turn could lend money to businesses. Then businesses would be able to hire workers.
Created the Reconstruction Finance Corporation to provide these loans.
Built the Hoover Dam.

4. Americans Protest Hoover’s Failures
In 1924 Congress passed the Adjusted Compensation Act, which provided for a lump-sum payment to the veterans in In 1931, many veteran groups began to call for an early payment of the bonus, arguing the out-of-work vets needed the money to support themselves.
The Bonus Army- World War 1 veterans seeking the bonus Congress had promised them.
Hoover vetoed the bill, saying that many of the vets did not need the early payment.

5. Roosevelt Takes Charge
November 1932, Franklin Delano Roosevelt won the presidency
More than 7 million votes
Lost his legs to polio in 1921
Married to Eleanor Roosevelt
Relied heavily on her because of his disability
Distant cousins

6. Election Map 1928

7. Election Map 1932

8. The New Deal
Relief- Referred to improving the immediate hardships of the depression.
Recovery- Aimed at achieving a long-term economic recovery.
Reform- Designed to prevent future depressions.

9. Trickle Down v. Pump PrimingVS
Which strategy works better?