Herbert Hoover & Franklin Roosevelt
An analysis of U.S. Presidents Herbert Hoover and Franklin Roosevelt with regard to their handling of the Great Depression. While Hoover took a conservative approach to the depression, Roosevelt favored greater government involvement in the economy. Feeling that support for the depression should come from state or local governments, He was slow to react. Also, in the past the minor depressions or 'Panics' eventually dissipated as the economy stabilized. When the economy did not stabilize, he set up a couple of reforms which did too little, and were too late in nature. He set up the Hawley-Smoot Tariff, which made tariff rates to be the highest in history, which was designed to protect American business. Finally realizing that some government action was needed to bring the United States out of its depression, he created the Reconstruction Finance Corporation. This made it so principal institutions, such as railroads, banks and life insurance companies would be eligible for federal emergency loans. Under this idea, money was thought to trickle down. The New Deal was the main feature in Franklin Delano Roosevelt's campaign against Hoover's reelection. It was apparent in Franklin's first years as president, that the New Deal program was going to follow the three Rs relief, recovery and reform. First, to bring relief to the nation, FDR instituted the Brain Trust which consisted of highly educated advisors which he used for advice on economic matters.During Franklin's reelection, his second and last phase of the New Deal contained important relief programs and reforms. Some of these were The Works Progress Administration (WPA), the National Labor Relations Act, and Federal Taxes. The WPA was established so people would be provided with jobs on a massive scale. The National Labor Relations Act allowed workers to join unions and bargain with their business employers. Franklin also significantly increased the income tax upon the wealthy.In conclusion, Roosevelt and Hoover had two different philosophies when it came to governing. Roosevelt felt that the government should be very involved in helping out the economy. Hoover believed the government should hold to Lassie Faire.