Election of 1932

• President Herbert Hoover– Trickle Down

Vs

• Franklin Delano Roosevelt– Pump-Priming

Election 1932

• Herbert Hoover-– Trickle Down

• Franklin Deleano Roosevelt-– Pump-Priming

• Who would you vote for?

Setting the stage for Depression

• Mass production• Assembly line (jobs)• Consumerism• Land speculation• Buying on margin

• Overproduction• Unemployment• no $$$ to buy• Property values ↓• Stock market

collapses

Depression

• Massive unemployment causes many people out of homes, leaves them hungry, and with no options

• “Hoovervilles”- shanty-towns found across the nation

• Young people didn’t marry/go to college

Economy during the 1920s

• 1923-29- Economic prosperity– Inflation barely occurred– Per capita income rose 30%– Americans were buying more– Gross National Product increased 40%

Business Cycle

Stock Market Crash

• Black Thursday (Oct. 24, 1929)• Black Tuesday (Oct. 29, 1929)

– Lost $14 billion in value

($30 billion in all)

• Examples-– U.S. Steel - Sept. 3, 1929- $262 a share

Nov. 13, 1929- $138 a share– General Motors - $73 to $8

Hoover’s Responses

• Rugged Individualism

• Encouraged businesses to maintain high wages

• Promote Charity

• Reconstruction Finance Corporation– Loans to the states for public works and

unemployment relief

Bonus Army March

Bonus Army

• Who?

• What did they want?

• Did they get it?

• What was the outcome?

Hoover’s Controversial Response

Franklin Deleano Roosevelt

Early Political Career

• 1910- New York State Senate– Reelected for second term in 1912– Resigns March 17, 1913

• Appointed Assistant Secretary of the Navy– By Woodrow Wilson (1913)– Developed longtime affection for the navy

• Ran for Vice President in 1920– Lost and retired to a New York law practice

Governor of New York

• 1928-1932

• Reform governor-– New social programs

• Created relief programs

– Gathered advisors

1932 Presidential Election

• America was in the midst of the Great Depression– Unemployment raises to 25% (1 out of 4)

• “I pledge you, I pledge myself, to a new deal for the American people”– Creates “New Deal” concept of getting

America out of depression through social programs

Is Obama the next FDR?

Or the next Hoover?

• Can’t fix unemployment.