Causes of the Great Depression Overproduction Underconsumption Overexpansion

Hoover’s Policies § At first – voluntary action and restraint § Don’t cut wages

Hoover Policies § Hawley-Smoot Tariff – highest in history § Debt moratorium – suspended

The Depression Deepens § Increased unemployment (+25%) § Banks and businesses closed § People

The Election of 1932 Hoover v. FD Roosevelt

Herbert Hoover § Republican § Talented administrator – § § WWI Food Administration; Cabinet;

Franklin D. Roosevelt § Democrat § Governor of NY – “little New Deal” §

FDR’s New Deal The 3 R’s Relief Recovery Reform Stop downward Trend “first aid”

RELIEF § Stop the bleeding § Stop the downward spiral of depression § Apply

RECOVERY § Turn the economy around § Get industries moving again

REFORM § To make sure this never happens again § Permanent changes to the

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Causes of the Great Depression § § § Overproduction & Underconsumption Overexpansion of credit Uneven distribution of income Speculation in stock market & real estate Weak farm economy Government policies of deregulation & high tariffs § Global economy § Crash of stock market in October 1929

Hoover’s Policies § At first – voluntary action and restraint § Don’t cut wages § Don’t go on strike § Private charities increase efforts to help § Government assistance would destroy selfreliance § “Rugged Individualism”

Hoover Policies § Hawley-Smoot Tariff – highest in history § Debt moratorium – suspended payments on international debt owed to US § Federal Farm Board – help stabilize farm prices § Reconstruction Finance Corporation – to prop up failing railroads, banks, insurance companies

The Depression Deepens § Increased unemployment (+25%) § Banks and businesses closed § People lost their homes § Hoovervilles, Hoover blankets § Breadlines, soup kitchens § People associate bad times with Hoover’s lack of effective response

The Election of 1932 Hoover v. FD Roosevelt

Herbert Hoover § Republican § Talented administrator – § § WWI Food Administration; Cabinet; incumbent President Economy was sound; avoid direct gov’t involvement Rugged Individualism; Supply-side economics; Reconstruction Finance Corp.

Franklin D. Roosevelt § Democrat § Governor of NY – “little New Deal” § Experiment – try something; if it doesn’t work, try something else § Demand-side economics; get help to those in greatest need; “A New Deal” for the American people

Electoral Vote -1932

FDR’s New Deal The 3 R’s Relief Recovery Reform Stop downward Trend “first aid” Help to get industries Going again “turn it around” Permanent changes to The system “never let it happen again”

RELIEF § Stop the bleeding § Stop the downward spiral of depression § Apply first aid

RECOVERY § Turn the economy around § Get industries moving again

REFORM § To make sure this never happens again § Permanent changes to the system