1. HOOVER vs. FDR What should/can the President do??

2. Role of Federal Gov’t BEFORE Great Depression?
Laissez-faire Capitalism
EARLY in the Depression?
People did not have much contact with fed. gov’t
No gov’t programs in place to address large scale economic crisis

3. Hoover vs. FDR Education/Career Gov’t roles Education/Career
Stanford/Engineer
Gov’t roles
WWI food in US/relief in Eur
: Sec. of Commerce
1928: President
In ‘28 campaign: "We in America today are nearer to the final triumph over poverty than ever before in the history of any land."
Education/Career
Harvard/Columbia Law
Lawyer
Gov’t roles
NYS Senate
Asst. Sec of Navy, WW
: Gov of NYS
1932: President

4. Hoover vs. FDR Initial reaction to Depression:
Optimistic
Expected quick recovery
People should not suffer, but opposed federal relief
VOLUNTARY, PRIVATE & LOCAL
Asked businesses to pledge to not cut wages or production
Suggested cities/towns launch bldg projects to create jobs
Initial reaction to Depression, before Pres.:
NYS provide public works jobs to support jobless
“Brain Trust” of advisors
“Economics of scarcity”: cut production to raise prices
Like Hoover, supported balanced budget (gov’t does not spend more than it has)

5. Hoover Programs see Hoover’s Response hwk
Did put some federal programs in place:
Agricultural Marketing Act
Effective?
Reconstruction Finance Corporation, 1932
Emergency Relief Act, Jul 1932

6. Evidence Hoover’s effort insufficient? see Hoover’s Response hwk
Wages dropping
Unemployment up
Little money “trickles down”

7. Evidence Hoover’s effort insufficient? see Hoover’s Response hwk
Public resentment
Too little, too late?
Hoover = scapegoat?

8. Evidence Hoover’s effort insufficient? see Hoover’s Response hwk

9. FDR wins 42 of 48 States

10. FDR
“This great Nation will endure as it has endured, will revive and will prosper. So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself—nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance.” -Inaugural Address, March 4, 1933

11. NEW DEAL March 9-June 16, 1933 1st New Deal: FIRST 100 Days 3Rs
FDR proposed 15 bills
All passed with only minor changes
3Rs
2nd New Deal began 1935

12. FDR: “Brain Trust” Advisors
ECONOMICS of SCARCITY
Strategy: Cut production to raise prices
PRIMING THE PUMP
Strategy: Gov’t deficit spending