[123] While Smith lost the presidency in a landslide, and was defeated in his home state, Roosevelt was elected governor by a one-percent margin,[124] and became a contender in the next presidential election.[125]
Roosevelt proposed the construction of hydroelectric power plants and addressed the ongoing farm crisis of the 1920s.[126] Relations between Roosevelt and Smith suffered after he chose not to retain key Smith appointees like Moses.[127] He and his wife Eleanor established an understanding for the rest of his career; she would dutifully serve as the governor's wife but would also be free to pursue her own agenda and interests.[128] He also began holding "fireside chats", in which he directly addressed his constituents via radio, often pressuring the New York State Legislature to advance his agenda.[129]
In October 1929, the Wall Street Crash occurred, and with it came the Great Depression in the United States.[130] Roosevelt saw the seriousness of the situation and established a state employment commission. He also became the first governor to publicly endorse the idea of unemployment insurance.