Hoover’s Policies

Rugged Individualism

• “Pick yourself up by your bootstraps”

• The free-market will cure itself

1. Hoover Organizes Business

Recommends businesses end wages cuts and layoffs

• Banks

• Railroads

• Labor leaders

• Industry leaders agree to the recommended terms, but due to business instability the promises are broken soon after the conference

2. Public Works

• Increased funding for public works programs creates jobs

• Hoover refuses “deficit spending” (the government spending more than it receives in tax revenue)

Federal Reserve, NCC, and RFC

• Hoover encourages the Federal Reserve to increase the amount of money in circulation.-Hopes that increased money flow will increase

corporate loans

• Hoover creates the National Credit Corporation (NCC) and the Reconstruction Finance Corporation (RFC)

-NCC loans money to banks enabling banks to loan money to the public-

-RFC loaned money to big businesses

Help for Citizens

• Hoover opposed federal (national) aide for struggling citizens• Aide should begin with state and local

governments along with private charitable organizations

• Congress passes the Emergency Relief and Construction Act• Allocates $1.5 billion for public works and

$300 million in emergency loans to states

Read Hoover Quotes

• Summarize the major themes of his policies regarding the economy and government responsibility

Election of 1932

Franklin Rooseve

lt

472 Electoral Votes

Herbert Hoover

59 Electoral Votes

Franklin Roosevelt’s Policies

First 100 Days

Relief-Recovery-Reform

1st New Deal: 1933-1934

Relief

• Public Works• Public Works Administration (PWA)• Built hospitals, roads, bridges, dams, schools, reforestation, flood control

• Cut unemployment

• Rural Programs• Resettlement Administration (RA)• Relocated struggling citizens to governmentally planned communities

• Rural Electrification Administration (REA)• Provided utilities to rural areas

• Civilian Conservation Corps. (CCC)• Provided manual labor positions to men 18-25 conserving governmentally

owned land in rural areas

• Tennessee Valley Authority (TVA)• Built dams which produced hydro electric power to the Tennessee Valley

Recovery

• Governmental economic planning is necessary for total recovery

• National Recovery Administration• Raise wages• Reduce hours• Eliminate child labor• Establish a minimum wage

• Housing • Homeowners loan corporation (HLC)• Federal Housing Administration (FHA)• Standardized loans and increased loan accessibility

Reform

• Trade Reform

• Reciprocal Tariff Act• Allowed the President to negotiate bilateral

trade policies

Read FDR Quotes

• Summarize the major themes of his policies regarding the economy and government responsibility

Textbook Read