How did Hoover and Franklin D Roosevelt differ in their approaches to solve Great Depression who was more effective?

Answer 1

Hoover felt the Depression was just part of the Free Enterprise system at work and the economy would eventually straighten itself out. He did not believe that government should take an active role in providing direct relief to those out of work, or to the local and state governments. That was the job of private charities. States could also regulate their own economy without federal government interference. One of the beneficial actions on the part of Hoover was to approve the Reconstruction Finance Corporation which provided relief to businesses, banks, and railroads. Money was lent to those business operations that were basically sound. FDR on the other hand believed in direct action by the federal government to try and get the economy back on its feet. He believed the federal government had three jobs to perform, in this order, direct Relief, immediate Recovery, and long term Reform. He ordered all banks closed until they could be examined by federal inspectors. He organized a group of advisers that made up his "Brain Trust" and they came up with the programs that would become the New Deal. FDR believed it was better to try something, and if it didn't work, then try something else, instead of doing nothing.

That is the conventional view passed down by historians. However, it has been challenged, as examination of the legislative record shows Hoover to have been far more activist than historians eager to contrast Hoover and FDR would have one believe. FDR in fact campaigned against Hoover's "irresponsible" deficit spending, then greatly expanded on his programs after inauguration in 1933.

From Wikipedia on the subject:

"Hoover engaged in many unprecedented public works programs, including an increase in the Federal Buildings program of over $400 million and the establishment of the Division of Public Construction to spur public works planning. Hoover himself granted more subsidies to ship construction through the Federal Shipping Board and asked for a further $175 million appropriation for public works; this was followed in July 1930 with the expenditure of a giant $915 million public works program, including a Hoover Dam on the Colorado River.[103][104] In the spring of 1930, Hoover acquired from Congress an added $100 million to continue the Federal Farm Board lending and purchasing policies. At the end of 1929, the FFB established a national wool cooperative-the National Wool Marketing Corporation (NWMC) made up of 30 state associations. The Board also established an allied National Wool Credit Corporation to handle finances. A total of $31.5 million in loans for wool were made by the FFB, of which $12.5 million were permanently lost; these massive agricultural subsidies were a precedent for the later Agricultural Adjustment Act.[105][106] Hoover also advocated strong labor regulation law, including the enactment of the Bacon-Davis Act, requiring a maximum eight-hour day on construction of public buildings and the payment of at least the "prevailing wage" in the locality, as well as the Norris-LaGuardia Actin 1932. In the Banking sector, Hoover passed The Federal Home Loan Bank Act in July, 1932, establishing 12 district banks ruled by a Federal Home Loan Bank Board in a manner similar to the Federal Reserve System. $125 million capital was subscribed by the Treasury and this was subsequently shifted to the RFC. Hoover was also instrumental in passing the Glass-Steagall Act of 1932, allowing for prime rediscounting at the Federal Reserve, allowing further inflation of credit and bank reserves.[107]Lee Ohanian, from UCLA, argues that Hoover adopted pro-labor policies after the 1929 Stock Market crash that "accounted for close to two-thirds of the drop in the nation's gross domestic product over the two years that followed, causing what might otherwise have been a bad recession to slip into the Great Depression".[108]"

Answer 2

Hoover kept cutting taxes (letting the wealth stay at the top of the economy and hoped that it would somehow flow down to the depths of poverty). FDR's method for solving the depression was to give work to everyone that was able to work. This meant that some of the jobs weren't necessary, but they were given to people anyways.

Hoover was a hard working republican that believed in the existing system (republican style of government). Another interesting thing that Hoover did was that he refused to give out welfare because he said that it "demeaned hard working Americans". FDR believed in higher taxes in order to give out more government relief. So to sum it up if you earned $10, Hoover taxes you a dollar and the money goes into the government and he hopes you spend your money instead of saving it because this is his way of getting the people to pump money into the economy. FDR taxes you $5 and doesn't care what you do with the other $5 because he is deciding for you how to put the money into the economy.

Answer 3

Because of his conservative beliefs, Hoover thought that it was the people's problem, not the governments. Therefore, he did not do anything to help. The country was astounded by what he did (or didn't do). People were struggling as unemployment dropped 25%, and so were farmers considering crop prices dropped approximately 60%.

Answer 4

Hoover's approach was to let business and banking work it out, and the "solution" would filter down to the little people. This was essentially ineffective. Roosevelt's idea was to put the little people back to work, and give them a "can do" spirit about it. It took some time (the financial damage wrought by the Great Depression was much, much worse than the recent recession), but it ultimately did work. Roosevelt knew that 90% of America were the "little people". Then World War II came along, and the last vestiges of the Depression vanished - there were high paying jobs for everyone.

Answer 5

Hoover believed in a balanced budget and not pumping government money into the economy. He believed in "rugged individualism" and relied on the individual, the churches and private charities, and the local and state governments to handle most of the economic help that was needed. FDR believed in a "hands on" approach to help solve the Great Depression. He favored federal government activity and the New Deal enacted laws that influenced society on a daily basis on the part of the federal government.

Answer 6

Hoover thought he could move everyone to small, dirt houses far away.

Roosevelt shut down all banks until they earned a large sum of money. once the bank did, they had to give alot to citizens