Student Essay on Comparison of Herbert Hoover and Franklin Roosevelt

Comparison of Herbert Hoover and Franklin Roosevelt

Summary:   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.

During the early1920s, the United States saw the great increase in prosperity. By the late 20s, however this economic boom was completely diminished, and replaced with the worst depression our country had ever seen. Herbert Hoover would be seen to be somewhat conservative in how he handles this depression. Franklin Delano Roosevelt would prove to be a man who favored government involvement in the economy.

Just one year after Herbert Hoover was elected president, the depression hit. 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. The banks were loosing control of their money, and in order gain back this control, FDR ordered a 'Bank holiday' which allowed the government time to reorganize them on a sound basis. Some of the financial recovery programs form FDR's New Deal was, The Federal Deposit insurance Corporation (guaranteed individual bank deposits up to 5000) and The Home Owners Loan Corporation (allowed refinancing of small homes to prevent foreclosures). In addition to these recovery programs, FDR also instituted a series of programs for the unemployed. The recovery program that stood out was the National Recovery Administration (NRA). This administration was able to dictate reasonable profits for businesses, fair labor wages and hours, as well as the right for workers to organize into unions and peacefully bargain with their respective business. The NRA was deemed unconstitutional by the senate along with the Agricultural adjustment Administration (which encouraged farmers to reduce production), a few years later.

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. One of the main reforms that he made here was the Social Security Act. This act provided people over 65 years old with a stable supply of income. The last and major reform of his second reelection, was the Fair Labor Standards Act. The standard minimum wage was set, as well as the standard 40 hour work week, and the child labor restrictions upon persons under 16 were all set by this Act. This country was recovering slowly, it would take World War Two to officially pull us out of the Great Depression.

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.