Herbert Hoover believed the Depression was caused by worldwide forces and that limited government intervention and restoring confidence would solve it. He created some programs but Americans still struggled. Franklin Roosevelt promised bold action and massive government intervention. The New Deal aimed to provide relief, recovery, and reform through programs that directly aided citizens, marking a dramatic shift in the government's role from limited to active in citizens' lives.

1. Responses to the Great
Depression
Hoover vs. Roosevelt

2. Herbert Hoover
❖ Blamed the Great Depression on
world-wide economic conditions
beyond US’s control
❖ Believed in limited government
action
❖ less government is better
❖ Restore American’s confidence
by saying “Hang in there!
Prosperity is just around the
corner!”
❖ Creates the Restoration Finance
Corporation (RFC) to give credit
to large industries, railroads, and
insurance companies
❖ Promoted federal programs to
help businesses because once
they recovered, it would trickle
down to consumers
❖ To help create jobs, Hoover
proposed spending money on
new public buildings, roads,
parks, and dams
❖ Despite these steps, Hoover’s
refusal to provide direct help to
Americans badly damaged his
image as the nation’s leader

3. Franklin Roosevelt
❖ Hoover was viewed as a “do-nothing
president”
❖ FDR was willing to experiment
with the role of the national
government
❖ Results: a landslide victory for
FDR and a mandate to use
government as an agency for
human welfare
❖ In his inaugural address, he said
“The only thing we have to fear
is fear itself…”
❖ He promised vigorous leadership
and bold action, called for
discipline and cooperation,
expressed his faith in democracy
and asked for divine protection
and guidance.

4. Purposes of the New Deal
❖ Relief: to provide jobs for the
unemployed and to protect
farmers from foreclosure
❖ Recovery: to get the economy
back into high gear. “Priming the
Pump”
❖ Reform: to regulate banks,
abolish child labor, and to
conserve farm lands
❖ Overall objective: to save
capitalism
First New Deal (1933-1934)
❖ Emphasis: Relief/Recovery
❖ Primary aim: Economic recovery
❖ Philosophy: Raise prices by
creating the illusion of scarcity
❖ Objectives: higher prices for
agriculture and business
❖ Beneficiaries: big business and
agricultural business

5. Major Features of the New
Deal

7. In what ways did New Deal programs dramatically change the
connection between government and American citizens?

8. Programs of the New Deal