Presidents Respond: Hoover and Roosevelt During the Great Depression

Presidents Respond: Hoover and Roosevelt During the Great Depression
Overview

  • This part talks about how Presidents Herbert Hoover and Franklin D. Roosevelt dealt with the Great Depression. It shows their very different ways of handling this major crisis.

Perception of Presidential Actions

  • Hoover's Perception: People felt he didn't do much to fix the worsening economic problems.

  • Roosevelt's Perception: He was seen as someone who took significant steps to reduce the effects of the depression.

Hoover's Approach to the Great Depression

  • Initial Belief: Hoover first believed the Great Depression was only temporary, like past economic slowdowns, and didn't think the government needed to step in much.

  • Business Cycle: He thought the economy naturally goes through ups and downs and would get better on its own.

Concepts Proposed by Hoover

  • Volunteerism:

    • Definition: A policy that encouraged businesses to willingly keep workers employed and continue making products even during hard economic times.

    • Example: Hoover asked business owners to avoid firing workers or closing down their businesses because it was their national duty.

    • Effectiveness: This plan didn't work because many businesses couldn't afford to stay open when there wasn't enough demand for their products.

  • Localism:

    • Definition: Believing that local and state governments, rather than the federal government, should handle economic problems.

    • Example: Hoover suggested that local governments, like those in Florida or Miami, should deal with unemployment on their own.

    • Limitation: Local governments didn't have enough money to help effectively.

Hoover's Shift in Strategy

  • Election Year 1932: Realizing his public approval was very low, Hoover created the Reconstruction Finance Corporation (RFC) in 1932. This group gave federal loans to banks and businesses.

    • Criticism: People saw the RFC negatively because it mainly helped wealthy business owners and ignored ordinary citizens who were suffering during the depression.

    • Trickle-Down Economics: The idea behind the RFC was that helping businesses would eventually create jobs, and money would "trickle down" to the workers.

  • Controversy: Many people thought it was unfair and useless to support the rich when so many others were poor.

Major Projects under Hoover

  • Hoover Dam:

    • Description: This was a big construction project that gave jobs to thousands of people. It showed a major federal effort during Hoover's time as president.

    • Limitations: The good effects of this project only helped communities nearby and didn't fix the widespread poverty.

The Bonus Army Incident

  • Background: A group of World War I veterans camped in Washington, D.C., asking for an early payment of a bonus they were promised for 1945.

  • Confrontation: The U.S. Army, led by General Douglas MacArthur, forcibly removed the Bonus Army. This led to unnecessary violence and injuries, which seriously harmed Hoover's public image.

    • Result: This terrible event made Hoover seem uncaring and unable to understand the struggles of American veterans and citizens during the economic crisis.

Roosevelt's Entry into the Scene

  • Election Year 1932: Franklin D. Roosevelt, a Democrat and cousin of Theodore Roosevelt, became a popular candidate for president.

  • Polio: Franklin had polio, which left him partly disabled and affected how the public saw him.

    • Image Management: His disability was often hidden to make him appear strong.

Eleanor Roosevelt

  • Role: Roosevelt’s wife was active in public service and known for talking to people on behalf of her husband, who couldn't travel much due to his health.

  • Influence: She was an important advisor, sharing the public's concerns with the president and helping shape his policies.

Roosevelt's New Deal

  • Concept: Roosevelt promised a "New Deal" to fix the economy, showing he was willing to try different solutions instead of having a fixed plan.

  • Three Rs:

    • Relief: Aimed at giving immediate help to unemployed people.

    • Recovery: Efforts to get businesses and industries working well again.

    • Reform: Steps taken to stop similar economic problems from happening again in the future.

  • Alphabet Soup of Agencies: This refers to the many government organizations created under the New Deal, each known by its initials:

    • FDIC (Federal Deposit Insurance Corporation):

    • Purpose: Made sure money in banks was insured to make people trust banks again and stop them from rushing to withdraw all their money.

    • AAA (Agricultural Adjustment Act):

    • Purpose: Paid farmers to grow fewer crops to raise market prices and stabilize farming.

    • CCC (Civilian Conservation Corps):

    • Purpose: Provided jobs to young men for outdoor conservation projects, such as building parks and roads.

    • TVA (Tennessee Valley Authority):

    • Purpose: Brought electricity and development to the poor Tennessee Valley region by building dams and power plants.

Conclusion

  • Presidential Contrast: Comparing Hoover and Roosevelt shows a big change in how leaders thought about handling economic crises. Roosevelt's active government involvement was very different from Hoover's more hands-off approach.

  • Implications: Rejecting Hoover’s ideas for Roosevelt’s New Deal led to major changes in how much the government helps with the economy and social welfare, which still affects American policies today.