How did president franklin d. roosevelts new deal polices in fighting the great depression differ from the earlier polices supported by president hoover?
President Franklin D. Roosevelt's New Deal policies in fighting the Great Depression differed significantly from the earlier policies supported by President Hoover. Here are some of the key differences:
1. Government Intervention: President Hoover believed in limited government intervention and preferred laissez-faire policies, allowing the economy to correct itself. In contrast, President Roosevelt believed in active government intervention to stimulate the economy and alleviate the hardships faced by Americans during the Great Depression.
2. Relief Programs: Hoover's approach to relief programs was mostly voluntary and relied on local and state government efforts, as well as private charities. Roosevelt, on the other hand, implemented numerous federal relief programs such as the Civilian Conservation Corps (CCC), Works Progress Administration (WPA), and Public Works Administration (PWA) to create jobs, improve infrastructure, and provide direct relief to the unemployed.
3. Banking and Financial System: After the stock market crash, Hoover sought to stabilize the banking system through voluntary measures and encouraged private funding. In contrast, Roosevelt implemented the Emergency Banking Act, which declared a national bank holiday to reorganize and stabilize banks. Additionally, he established the Federal Deposit Insurance Corporation (FDIC) to insure bank deposits and prevent future runs on banks.
4. Expansion of Federal Powers: Roosevelt significantly expanded the powers and responsibilities of the federal government to address the economic crisis. He introduced the Tennessee Valley Authority (TVA), which provided electricity and economic development for a vast region. He also signed the Social Security Act, which established a national retirement pension system, unemployment benefits, and welfare programs. These expansions of federal powers were not pursued by Hoover to the same extent.
5. Regulation and Reform: Hoover favored limited government regulation, believing that businesses would self-correct. Roosevelt, however, implemented regulations on banks and the stock market to prevent another economic collapse. He also initiated labor reforms, such as the National Labor Relations Act (NLRA), which protected workers' rights to form unions and bargain collectively.
Overall, the New Deal policies under President Roosevelt represented a significant departure from Hoover's policies, emphasizing active government intervention, relief programs, and the expansion of federal powers to combat the Great Depression.