Election of 1932

Election of 1932

It is easy in hindsight to blame Congress for its failure to effectively regulate banks and financial markets. It is also tempting to blame Hoover for not embracing deficit spending, public works projects, and deliberate inflation to try to spur the economy. However, the total federal budget for non–defense-related expenditures was barely more than what some of the larger states spent each year. The expectations of the federal government were limited, and previous recessions and depressions had been dealt with by allowing the business cycle to right itself. From the perspective of history and Treasury Secretary Andrew Mellon, the role of the federal government was to stoically permit the natural workings of the market to “purge the rottenness out of the system.”

The Democrats believed that this depression was different, and they began their attack on Hoover and Republican members of Congress during the Congressional elections of 1930. Many of their allegations were less than objective and even unfair. However, partisan attacks against the party in power during times of economic decline was a time-honored strategy among both parties. Democrats used the science of marketing to brand the president and the Republicans as the architects of ruin. The empty pockets of an unemployed worker turned inside out were labeled “Hoover flags,” and the newspaper that covered him at night was referred to as a “Hoover blanket” by the Democrats.

After the Democrats gained over fifty seats in the House of Representatives during the 1930 elections, Hoover belatedly agreed to fund some public works projects. He also agreed to provide unprecedented loans to keep banks and other financial firms from going bankrupt. Despite Hoover’s activism, sincerity of purpose, and a work schedule that allowed him only a few hours for sleep, the economy continued to decline throughout the election year of 1932. The Democrats successfully branded the federal bailouts of banks—a strategy they had actually recommended to the president—as evidence to support their claims that Hoover cared more about the bankers who allegedly caused the Depression than the people who were suffering from it.

The perception was both unfair and inaccurate, as Hoover had agreed to numerous bipartisan relief efforts that would alleviate conditions in the next few years. For example, the Emergency Relief Act of July 1932 authorized up to $2 billion in loans to states to finance direct relief to those most in need and public works projects to provide jobs. These loans would pale in comparison to the massive federal programs of the next few years. However, these loans and other programs also initiated the process of using the federal government and monetary policy to steer the economy. They also provided funding for the first federal welfare program beyond the Sheppard-Towner Act which had offered limited subsidies for women’s health clinics.

In politics, as in most other fields, perception is reality and Hoover was continually branded as insensitive and unwilling to help those in need. Despite Hoover’s belated acceptance of what would later be known as Keynesian economics, he would be remembered as a president that did nothing in the face of crisis. He would also be portrayed as someone who believed in “trickle-down” theories of economic growth and recovery. This theory argues the best way to aid the economy is to secure the fortunes of the wealthy and the solvency of banks. Historians have recently argued that this comparison is inaccurate, especially when considered within the context of 1920s America. These times were about to change quickly, however, as Hoover’s successor used a variety of new strategies on such a massive scale that most Americans would forget Hoover’s limited attempts to use the power of the federal government to address the crisis.

Figure 6.28

As this map indicates, the Democratic candidate Franklin Delano Roosevelt easily prevailed over the incumbent Herbert Hoover in the 1932 presidential election.

That man was Franklin Delano Roosevelt (FDR)A New York governor who became the 32nd president of the United States, Roosevelt would be elected to an unprecedented four terms between 1932 and his death in 1945. Although born and raised in affluence, Roosevelt communicated empathy for those Americans struggling through the Great Depression. As president, Roosevelt used his political power to create a number of federal programs that would later be known as the New Deal. He also sought to intervene on behalf of the Western Allies prior to the official US declaration of war against Japan and Germany in December 1941., a man of privilege who was born into an affluent family and used his connections to become governor of New York. Roosevelt was a lifelong politician who had been crippled by polio in 1921. With the aid of steel braces and his own indomitable will, he managed to “walk” by throwing his weight forward and bracing himself on the arm of a sturdy companion. For the rest of his life, that companion was his wife Eleanor. Also from a prominent family, the talented and well-educated Eleanor Roosevelt became his public face while her desk-bound husband dispatched armies of letters that kept him connected to the political world.

In the same year that New York’s Al Smith lost in a landslide to Hoover, Smith had convinced Roosevelt to enter the gubernatorial race in New York. Roosevelt’s victory and rising influence within the Democratic Party in the next four years ironically led to his selection over Al Smith during the 1932 Democratic convention. Hoover was nominated by a dispirited Republican Party but did not campaign in an election that many believed had already been decided by the state of the economy. Roosevelt spent most of 1932 campaigning for office by attempting to reconcile the various elements of his party rather than attempting to confront Hoover. By November 1932, industrial production had declined by 50 percent, and even business interests were abandoning Hoover and the Republicans. Everyone in America knew that whoever won the Democratic nomination had effectively won the presidency by default. What Roosevelt might do to halt the Depression and spur recovery, however, remained anyone’s guess.