Hoover and Roosevelt's Response to the Great Depression

The depression while Herbert Hoover was president drove America into something they have never experienced before. For the first time, Americans experienced a lack or resources and money and they did not know how to help themselves. Hoover stated: “...Economic depression cannot be cured by legislative action or executive pronouncement…”[1] Hoover believed that the American people should be able to pull themselves out of a depression without the help of the government. People disagreed with Hoover’s ideas and wanted a new leader with ideas to help them out of the depression. Franklin Roosevelt created many programs during his presidency that helped aid the country struggling through the Great Depression. The New Deal (1933-1940), Roosevelt’s plan called for immediate relief, economic reform, and future recovery. The implementation of Roosevelt’s New Deal plan was successful in pulling the country out of the depression. Roosevelt created many relief programs, the Emergency Banking Act which closed all banks in the nation so the government could inspect the banks health. The Federal Deposit Insurance Corporation (FDIC) was created to insure deposits up to $5000. In 1933, the Federal Emergency Relief Administration (FERA) was formed under the New Deal. This gave loans to the states so they could run their own relief programs. FERA was replaced in 1935 by the Works Progress Administration (WPA). The WPA provided jobs for 8 million Americans constructing and repairing schools, hospitals and many other things. The Civilian Conservation Corps (CCC) gave 2.5 million single men to work saving forests and beaches and parks. It also gave 8,500 women similar jobs. This program taught men and women how to live independently. Roosevelt, “brought up the idea that became the Civilian Conservation Corps. Roosevelt loved trees and hated to see them cut and not replaced. It was natural for him to wish to put large numbers of the unemployed to repairing such devastation.”[2] This gave American men and women the opportunity to work and live independently while still receiving the aid they desperately needed. The nation’s financial system was in need of some serious help, and Roosevelt had a plan of reform to fix it. The Social Security Act, created in 1935, gave benefits to retirees and the unemployed. This act also gave money to states to provide assistance for the elderly, unemployment insurance, the blind and many other cases. In Roosevelt’s eyes this would benefit not only old people, but the nation as a whole. Roosevelt: “...to help those who have reached the age of retirement to give up their jobs and thus give to the younger generation greater opportunities for work and to give to all a feeling of security as they look toward old age.”[3] Roosevelt also signed the Tennessee Valley Authority (Act) in 1933 which provided flood control of the Tennessee River with the construction of many dams. It also created the manufacturing of fertilizer, hydroelectric power, and development of an economy in the Tennessee Valley. The TVA even taught farmers how to replant forests, control fires, and improve the habitat for wildlife. This was an important step in helping the nation back to solid financial standing. Roosevelt’s reform ideas helped generated assistance for many Americans, and some reforms, such as the Social Security Act, are still in use today. We also still benefiting from reforms such as the Tennessee Valley Authority, which still helps with recovery of habitat.

Another important part of Roosevelt’s plan was recovery. Part of that recovery was to set limits on businesses and help create new business opportunity. In 1933 the National Recovery Administration was created to end wage deflation restore competition. It gave businesses codes and limits. The NRA had a blue eagle as their symbol and “We Do Our Part” as their slogan. It was intended to restore investor confidence and consumer morale. The slogan and its use of the eagle were used to strike a sentiment in American hearts. This was a uniting symbol and helped consumers and business owner’s draw together in a time of need. The slogan, “We Do Our Part” helped fuse Americans together.
Bibliographies
Hoover, Herbert. Second annual message to Congress, December 2, 1930
Perkins, Frances. The Roosevelt I knew. The Viking Press, 1946
Roosevelt, Franklin. Fireside Chat. April 28, 1935
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[1] Herbert Hoover. Second annual message to congress, 2 December 1930
[2] Frances Perkins, The Roosevelt I Knew [The Viking Press, 1946], 169
[3] Franklin D. Roosevelt. “On Sacrifice,” Fireside Chat, 28 April 1935