Roosevelt’s Response to Great Depression: FDR believed strongly that action needed to be taken immediately. He started off with The First New Deal. It was a dizzying array of laws, agencies and programs to bolster the economy. It was experimental in nature not ideological. Its three basic components were Industrial recovery, agricultural recovery, and short term relief for the jobless. One of the first things he did was put a 4 day bank holiday, and called an emergency session of congress. If after the 4 days the bank reopened, then it was deemed in good shape. This restored confidence to the American people and ended bank runs. For industrial recovery he created the National Recovery Act which had many different components for everybody. Examples were lifting anti-trust laws for business, Created jobs by giving money for public works, right to collective bargaining for workers, created the FDIC and SEC for regulation and confidence. For agricultural he created the Agricultural Adjustment Act which extended credit to farmers. It also bolstered crop and livestock prices by reducing production, by paying farmers to plow over crops and kill livestock. For the jobless he created the Civilian Conservation Corps which created jobs for young men. The built state parks, roads, playgrounds etc. There was also the Tennessee Valley Authority which used dams to create electricity for poor people throughout the Tennessee valley area. There was some criticism of The First New deal and the Supreme Court ruled the NRA and AAA unconstitutional, this led to the Second New Deal. Started out with direct aid to the needy and created the Works Project Administration, which employed 8.5 million people. They were concerned with public works projects, as well as, writing, theater, art and youth projects. Another part of the Second New Deal was the Social Security Act to protect the elderly. It was just the very beginning of Social Security and it excluded many professions.
Why Hoover responded that Way: Hoover was a strong believer in Lassiez-Faire economics. He believed that the economy has periods of ups and downs and that when the economy goes down it will eventually come back up again. He believed that the government must intervene as little as possible. As Secretary of Commerce did not want government to control industry but he wanted the government to persuade corporations to cooperate and make things better for industry as a whole. Another reason he may have responded that way is