Great depression

University of Phoenix Material

The Great Depression

Part 1

Complete the chart by filling in each president’s views on the Great Depression.

Herbert Hoover
Franklin Delano Roosevelt

Causes of the Great Depression

*Weak agricultural and industrial growth in the US was due to foreign competition with domestic businesses, and a solution that helped both domestic and foreign economies grow mutually was not necessary. *The lack of individual and voluntary response to the depression, especially response from industry leaders, was the issue, and policies regarding “CEO philanthropy” should be encouraged in lieu of federal intervention. *Lack of employment was due to a lack of public projects and improvements which needed to be slowly and cautiously funded and regulated.

Weak agriculture and industrial growth was due to a lack of regulation and required federal control and government loans to stop the spiraling depression in these sectors. *Lack of unemployment was due to the lack of state and city government’s ability to sufficiently employ the vast unemployed young men in the US, and federal intervention was absolutely necessary. *Lack of unregulated, unfair business practices in the industrial markets resulted in disenfranchised employees who worked too much for too little. Cutthroat competition between these types of companies resulted in low profit margins, low wages, and low morale.

General description of response to Depression

Beliefs that guided him in his attempt to solve it

He believed that raising prices on foreign products would protect American products from competition.

He believed that citizens, businesses and the government should work together voluntarily instead of being rescued through government mandated programs.

Roosevelt believed that, without a national plan for economic reform, the country would succumb to demagogues like Long and Coughlin.

What he told Americans they had to do to overcome the Depression

Hoover believed that if industry leaders and bigger companies did more volunteer work they could help the economy.

He thus formulated policies based on his idea of voluntary cooperation, which held that business leaders would make sacrifices for the benefit of the nation The only thing we have to fear is fear itself,” Roosevelt tried to reassure the country about its future.

What agencies he relied on to provide relief

Red Cross, President’s Organization on Unemployment Relief (POUR) - which persuaded local organizations across the country to raise money and to form voluntary groups that would sponsor soup kitchens and clothing exchanges. , Hoover Dam- one of the largest government construction projects ever undertaken, Reconstruction Finance Corporation (RFC). The RFC was a federally funded agency that loaned money to businesses with the hope that they would hire more workers. Brain Trust (a group of leading intellectuals charged with formulating policy), Roosevelt proposed a series of dramatic measures meant to reorganize the country’s financial system and raise the living standards of all Americans, especially working Americans. Federal Emergency Relief Administration (FERA), with funding of $500 million. FERA’s chief administrator, Harry Hopkins, preferred public works projects to direct payments to people, believing that the former were more considerate of the recipients’ pride.

Civilization Conservation Corps (CCC), enlisted unemployed young men between the ages of eighteen and twenty five in building and repairing highways, forest service sites, flood control projects, etc.

Significant acts passed during his presidency to help end the Depression

Herbert Hoover Believe the country was rich and full of resources. But after he took his seat in office the stock market crashed and the great depression began. But Hoover was out to do everything he could to stop the depression and turn the country...

References: Schultz, K. M. (2012). Hist 2 (2nd ed.). Retrieved from The University of Phoenix eBook Collection database