“Hoovervilles”, homeless camps

SOME BONUS MARCHERS BROUGHT THEIR FAMILIES

Beating Hoover in a landslide Franklin

Roosevelt (D) become president.

KEYNESIAN OR "PUMP PRIMING" ECONOMICS

BASED ON THE WORK OF ECONOMIST JOHN MAYNARD KEYNES. HE ARGUED THAT MONEY SHOULD BE INVESTED IN THE PEOPLE, THE WORKING CLASS. SPENDING WOULD THEN INCREASE WITH NEW MONEY IN CIRCULATION. AS

SPENDING INCREASED IT WAS EXPECTED THAT BUSINESS WOULD EXPAND TO MEET THE NEW DEMAND AND HIRE

NEW WORKERS. THIS WOULD BRING ON MORE SPENDING AND MORE GROWTH.

THIS PLAN WAS THE OPPOSITE OF THE REPUBLICAN PLAN ASCRIBED TO BY HOOVER AND EARLIER LEADERS. THEY

HAD BELIEVED IN SUPPLY SIDE OR "TRICKLE DOWN" ECONOMICS. IN THIS PHILOSOPHY MONEY WAS TO BE

INVESTED AT THE TOP, IN BUSINESS. THEN BUSINESSES WOULD EXPAND, HIRE NEW WORKERS AND THIS IN TURN

WOULD SPUR ON SPENDING AND FURTHER ECONOMIC GROWTH.

FDR’S PHILOSOPHY