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1.Hoover and Roosevelt both served as President of the United States during one of the most financially and economically challenging times in history. They had to tackle poverty, stabilize businesses, prevent shutdowns, take care of our Veterans, and keep from increasing the National Debt too much while bringing the nation out of instability. They achieved this using different methods.
First, similarities. Hoover and Roosevelt both persuaded the American people during their campaign and both won the vote in an landslide. Hoover is known for wartime public service, with his humanitarian efforts during WWI. Similarly, Roosevelt was appointed to a high Navy position as assistant secretary. Thus, both presidents had some kind of service during WWI. Which, may have helped later on as they sought a seat in the presidency. (Oddly enough, Hoover opposed the cash for Veterans incentive. Ironic since he served during WWI). Lastly, Hoover and Roosevelt both held presidential seats during the most notable economic downturn since the infancy of this country: The Great Depression. However, these two presidents handled them very differently.
Hoover seems to have taken the Great Depression too lightly and “public blame settled on President Hoover” (Chapter 23, III). Another source describes his administration as “one of the biggest failures in US History” (Dr. Schein, “The Decline of America” pg. 40).
Conversely, Roosevelt was aggressive! Roosevelt development many new administrations before his first 100 days in office! ). “His administration threw the federal government headlong into the fight against the Depression” (Ch 23, VII). Even before his time in office, Roosevelt unveiled an unemployment plan while still a governor. Roosevelt “Attacked the worst of the Great Depression unresolved by Hoover”. This is undeniable considering the New-Deal campaign proposal was imposed immediately after entering office.
Additionally, Hoover supported Prohibition while Roosevelt did not, and Hoover tried greatly to keep the National Debt down while Roosevelt was not as apprehensive to increase the debt so long as he was able to stimulate the economy (Schein, “The Decline of America; Ch. 23, XIII).
Hoover suggested for “volunteerism” and encouraged associationism. This may have been a problem, as here merely suggested these methods rather than enforcing better and more strict policies. He later realized the people could not single-handedly be responsible to greater the economic good. He also proposed the RFC which let bigger industries and business get emergency loans to keep their business afloat. The Americans reacted to this policy by calling it “a millionaire’s dole” as it skipped over the unemployed living in Hoovervilles.
On the other hand, Roosevelt made MANY policies under the “New Deal” (Reforestation Relief Act, Civilian Conservation Corpes, TVA, etc). One Policy to examine is the Emergency Banking Act. This act was designed to allow solvent banks to reopen and help the public regain their trust in banks. This got great reaction from Americans. This reaction was helped by Roosevelt’s “Fireside Chats”; a radio show which seemed to personalize the policies Roosevelt was rapidly revealing.
2.The Great Depression was a dark period for many Americans. The causes that lead to the Great Depression were the Stock Market crashing, wage cuts, unemployment rising, and higher loan interests. “ Shares of U.S. Steel dropped from $262 to $22. General Motors stock fell from $73 a share to $8...American exports fell by 78 percent…unemployment hovered around 7 percent”(Chapter 23, II). The two presidents during the five years of the depression were the republican Herbert Hoover and the democrat Franklin Roosevelt.
During Hoover’s and Roosevelt’s presidency, they shared some similar actions. One similarity being that both took executive actions that affected immigrants. Hoover “instructed consular officers to scrutinize carefully the visa applications...and suggested that this might include denying visas to most, if not all, alien laborers and artisans” as well as later target Mexican immigrants specifically(Chapter 23, VI). Roosevelt would later pass the Executive Order 9066, which authorized internment camps for many Japanese immigrants and Japanese Americans. “Thirty thousand Japanese Americans fought for the United States in World War II, but wartime anti-Japanese sentiment built on historical prejudices, and under the order, people of Japanese descent, both immigrants and American citizens, were detained and placed under the custody of the War Relocation Authority, the civil agency that supervised their relocation to internment camps. They lost their homes and jobs”(Chapter 24, IX). Another similarity being that they both passed relief programs for those in need. Hoover “established the President’s Organization for Unemployment Relief, or POUR, to help organize the efforts of private agencies”(Chapter 23, III). Roosevelt passed many programs such as the Social Security Act. “The Social Security Act provided for old-age pensions, unemployment insurance, and economic aid, based on means, to assist both the elderly and dependent children”(Chapter 23, XI). The last similarity being that both passed laws to battle the financial crisis in particular the banks. Hoover created the RFC, which provided emergency loans to banks, and Roosevelt passed the Emergency Banking Act, which put new safeguards into place (Chapter 23, III & VII).
The presidents also differed greatly on many fronts. One of the most significant differences was that Hoover had a “business” mindset whereas Roosevelt cared more about the “average” American. “To Hoover, direct government aid would discourage a healthy work ethic”, while Roosevelt was looking to create federal programs to help those in need(Chapter 23, III). A second difference is that Roosevelt took interest and time into helping the Agriculture community, while Hoover was more concerned with any other type of business. Roosevelt created the AAA”aimed to raise the prices of agricultural commodities (and hence farmers’ income) by offering cash incentives to voluntarily limit farm production (decreasing supply, thereby raising prices)”(Chapter 23, VI). Lastly, Hoover actually contributed to the Great Depression because he “promoted higher tariffs as a means for encouraging domestic consumption and protecting American farmers from foreign competition [and] signed into law the highest tariff in American history, the Smoot-Hawley Tariff of 1930, just as global markets began to crumble. Other countries responded in kind, tariff walls rose across the globe, and international trade ground to a halt”(Chapter 23, II).