The Great Depression: Herbert Hoover and Franklin Delano Roosevelt

The Great Depression
Part 1
Complete the chart by filling in each president’s views on the Great Depression.
Great DepressionHerbert HooverFranklin Delano Roosevelt
Causes of the Great Depression

According to Hoover, the Great Depression was caused by the 1929 stock market crash. However, before the crash, the stock market had embarked on a massive expansion, leading to the stock market ‘bubble’ and its eventual collapse (Hoover, 2015). 
Roosevelt believed that the banks had failed by over lending money to Americans. The banks could easily lend out money without requesting the relevant collateral and securities. 
General description of the response to the Depression

Hoover took limited steps to curb the Depression. However, he stuck to his policies of limited government intervention and American individualism. He refused to give government aids which he regarded as handouts.
He later took steps to create programs for generating employment did not help much in containing the Great Depression. 
Roosevelt formulated a ‘New Deal’ which involved diverse and innovative programs for economic recovery. He further declared ‘baking holidays’ to curb money lending. In addition, new federal programs were created to address issues in various sectors of the economy such as unemployment, stabilization of farm prices, and stabilization of prices of consumer goods (Rosen, 2017). 
Beliefs that guided him in his attempt to solve it

Hoover was guided by the belief in the resilience and handwork of Americans. His philosophies were centred on American Individualism and limited government intervention (Hoover, 2015). Roosevelt believed in providing economic relief to cushion Americans against the Depression. He also believed in increasing the federal government’s activities in reforming various economic sectors such as agriculture, labour, housing, waterpower, and other industries (Rosen, 2017).
What he told Americans they had to do to overcome the Depression

Hoover assured Americans that all was well, and they had to have confidence in the strength of the business and the country’s economic future. He further urged companies not to lay off, appealing to their spirit of volunteerism. Finally, he told Americans to have a spirit of rugged individualism and work harder (Hoover, 2015).
Roosevelt promised Americans a New Deal which would implement reforms in various sectors of the economy. In addition, he promised active programs aimed at innovative economic recovery (Rosen, 2017). 
What agencies he relied on to provide relief
Hoover established the President’s Committee for Employment (PECE) which assisted relief agencies such as Community Chest, Red Cross, YMCA, and Salvation Army (Hoover, 2015). The Agricultural Adjustment Administration (AAA) was established to raise farm processes by taking control of the production of the staple crops by giving cash subsidies to farmers. In addition, the Tennessee Valley Authority provided cheap electricity in seven states, improved navigation, and prevented floods (Rosen, 2017).
Significant acts passed during his presidency to help end the Depression

In 1930 Hoover approved a bill that provided relief to drought victims through access to fertilizers and animal feed.
He passed an act that led to the formation of the Reconstruction Finance Corporation (RFC). RFC was mandated to use funds to rescue banks, insurance companies, and credit unions (Hoover, 2015). Roosevelt passed the New Deal recovery programs, which involved various programs to provide relief in various sectors of the economy. The programs addressed issues such as unemployment, stabilization of farm prices, and stabilization of prices of consumer goods. 
Success or failure of his program, and why
Hoover’s programs did not succeed in mitigating the effects of the Great Depression.
This is because Hoover believed in individual hard work as opposed to government aid. However, he failed to recognize the severity and difference in the context of the Depression.
The majority of Roosevelt’s programs were a positive contribution to economic recovery. However, total recovery was not achieved due to a lack of sustained macroeconomic approaches (Rosen, 2017). 
Part 2
Most historians agree that the New Deal did not solve the problems of the Great Depression and that, in short, it failed to bring about full economic recovery. Nevertheless, it can be argued that the New Deal was significant in that it introduced a new political tradition ...