Responses to the great depression

Responses to the great depression

• 1.
  Responses to theGreat Depression Hoover vs. Roosevelt
• 2.
  Herbert Hoover ❖Blamed the Great Depression on world-wide economic conditions beyond US’s control ❖ Believed in limited government action ❖ less government is better ❖ Restore American’s confidence by saying “Hang in there! Prosperity is just around the corner!” ❖ Creates the Restoration Finance Corporation (RFC) to give credit to large industries, railroads, and insurance companies ❖ Promoted federal programs to help businesses because once they recovered, it would trickle down to consumers ❖ To help create jobs, Hoover proposed spending money on new public buildings, roads, parks, and dams ❖ Despite these steps, Hoover’s refusal to provide direct help to Americans badly damaged his image as the nation’s leader
• 3.
  Franklin Roosevelt ❖Hoover was viewed as a “do-nothing president” ❖ FDR was willing to experiment with the role of the national government ❖ Results: a landslide victory for FDR and a mandate to use government as an agency for human welfare ❖ 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.
• 4.
  Purposes of theNew 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, abolish child labor, and to conserve farm lands ❖ Overall objective: to save capitalism First New Deal (1933-1934) ❖ Emphasis: Relief/Recovery ❖ Primary aim: Economic recovery ❖ Philosophy: Raise prices by creating the illusion of scarcity ❖ Objectives: higher prices for agriculture and business ❖ Beneficiaries: big business and agricultural business
• 5.
  Major Features ofthe New Deal
• 7.
  In what waysdid New Deal programs dramatically change the connection between government and American citizens?
• 8.
  Programs of theNew Deal