Hoover’s Failure with the Depression

Hoover’s Failure with the Depression

Essential Questions: 1.)What was Hoover’s initial response to the Great Depression?

2.) What actions did Hoover take to help the economy and the hardship suffered by Americans?

3.) What was the Bonus Army and how did Hoover respond to it?

Hoover tries to reassure Americans • Remain optimistic • Business as usual • Government could play a limited role in helping to solve the problems.

Hoover Philosophy: • Power of Reason • Humanitarian • Gov. should facilitate not control • “Rugged Individualism”

Hoover’s Philosophy II • No Handouts! • No vast Federal Bureaucracy • Use State and Local Government • Charitable Organizations

Hoover Takes Cautious Steps • Called key economic and business leaders to the White House • He asked for promises of no more layoffs or cut wages. • Helped Private Charities generate contributions.

More Action Needed • Economy Shrinking • Unemployment rising • Increased Bankruptcy • General Misery • Soup Kitchens • Shantytowns • Hoboes

BoulderDam Project I • Approved in 1928 • Construction began in 1930 and ended in 1936. • Boulder City , NV Housed the workers. • Hoover financed the construction by using future profits of electricity

Boulder Dam Project • $700 million dollar public works project • 726ft. High and 1,244 ft. long • Provided electricity and flood control. (CO river basin) • Provided thousands of jobs • Water source for LA and LV

Americans Frustrated by 1930 • Democrats win more seats in Congress • Farmers burned crops and dumped milk • “Farm Holidays” • Farmers block Food • “Blame it on Hoover!”

“Mellon pulled the whistleHoover Rang the bellWall Street gave the signalAnd the country went to hell.”

Hoover Takes Action • Federal Farm Board – It would buy crops to keep them off the market. (Farm Cooperatives) • National Credit Corporation – Big banks loaned $ to smaller banks.

Hoover: Direct Intervention * Federal Home Loan Bank Act • Lowered mortgage rates for homeowners • Allowed farms to refinance their loans to avoid foreclosure.

Hoover’s Direct Action II * Reconstruction Finance Corp • $2 billion in emergency finance • Banks • Life Insurance Co. • Railroads • Large Businesses

Critics Of RFC • It would not trickle down • Benefited corporations • Poor still needed direct relief • “Too little too late.”

The Bonus Army • Spring of 1932 • 10,000 -20,000 WWI Vets and Families • Arrived in Washington DC • Came to support the Patman Bill • $500 bonus to vets

Bonus Army II • The bill was defeated • The marchers set up camps • Hoover thought they were communists • Some food was provided

Disbanding the Bonus Army • 2,000 marchers refused to leave • Hoover became nervous • What if the angry group became violent? • Hoover calls out the US Army

Violence in DC • 1,000 soldiers under MacArthur and Eisenhower are called out. • 1,000 people gassed • Two people shot, one blinded • Camp was burned down

Impact on Hoover • MacArthur did not respond to orders • Americans were outraged and stunned • Hoover’s image suffered • Hoover took the blame • Hoover vs FDR in 1932

Hoover’s Failure with the Depression