Election of 1932
• President Herbert Hoover– Trickle Down
Vs
• Franklin Delano Roosevelt– Pump-Priming
Election 1932
• Herbert Hoover-– Trickle Down
• Franklin Deleano Roosevelt-– Pump-Priming
• Who would you vote for?
Setting the stage for Depression
• Mass production• Assembly line (jobs)• Consumerism• Land speculation• Buying on margin
• Overproduction• Unemployment• no $$$ to buy• Property values ↓• Stock market
collapses
Depression
• Massive unemployment causes many people out of homes, leaves them hungry, and with no options
• “Hoovervilles”- shanty-towns found across the nation
• Young people didn’t marry/go to college
Economy during the 1920s
• 1923-29- Economic prosperity– Inflation barely occurred– Per capita income rose 30%– Americans were buying more– Gross National Product increased 40%
Stock Market Crash
• Black Thursday (Oct. 24, 1929)• Black Tuesday (Oct. 29, 1929)
– Lost $14 billion in value
($30 billion in all)
• Examples-– U.S. Steel - Sept. 3, 1929- $262 a share
Nov. 13, 1929- $138 a share– General Motors - $73 to $8
Hoover’s Responses
• Rugged Individualism
• Encouraged businesses to maintain high wages
• Promote Charity
• Reconstruction Finance Corporation– Loans to the states for public works and
unemployment relief
Early Political Career
• 1910- New York State Senate– Reelected for second term in 1912– Resigns March 17, 1913
• Appointed Assistant Secretary of the Navy– By Woodrow Wilson (1913)– Developed longtime affection for the navy
• Ran for Vice President in 1920– Lost and retired to a New York law practice
Governor of New York
• 1928-1932
• Reform governor-– New social programs
• Created relief programs
– Gathered advisors
1932 Presidential Election
• America was in the midst of the Great Depression– Unemployment raises to 25% (1 out of 4)
• “I pledge you, I pledge myself, to a new deal for the American people”– Creates “New Deal” concept of getting
America out of depression through social programs