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The Great Depression: Herbert Hoover & Rugged Individualism

The Great Depression: Herbert Hoover & Rugged Individualism. US History. 1. Presidency. Won big in election of 1928 – “ Boy Wonder ” Promised continued prosperity ; pledged hard work Popular with both parties Weakness – timing !!! (Crash of 1929). 1. Presidency.

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The Great Depression: Herbert Hoover & Rugged Individualism

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  1. The Great Depression:Herbert Hoover & Rugged Individualism US History

  2. 1. Presidency • Won big in election of 1928 – “Boy Wonder” • Promised continued prosperity; pledged hard work • Popular with both parties • Weakness – timing!!! (Crash of 1929)

  3. 1. Presidency • Personal Attitude Toward Depression and Individual Self-Reliance • Accepted traditional, conservative approach • Optimistic – “Recovery will occur naturally” • Believed the economy is self-regulating • Avoid Federal Government interference in the economy • Industry knows best how to stimulate economy • Preached “Rugged Individualism” – people should not expect government help • Opposed direct relief or “Public Assistance” • Make sacrifices; led the way with 20% cut of his own salary • Urged state and local governments to provide relief • Depressions are a local problem

  4. 1. Presidency • Preached “Rugged Individualism” – people should not expect government help • Opposed direct relief or “Public Assistance” • Make sacrifices; led the way with 20% cut of his own salary • Urged state and local governments to provide relief • Depressions are a local problem

  5. 1. Presidency • Federal Government must maintain a balanced budget; no deficit spending • Criticism mounted – poor public relation, “Hoover prefixes (ex. “Hoovervilles”)

  6. 1. Presidency • Depression Actions/Policies (aimed at “priming the economic pump”) • 1929 – Federal Farm Board – Farm cooperatives would voluntarily: • Coordinated crop production (region by region) • Withhold crops from the market until prices rose

  7. 1. Presidency • 1929 – Cut Federal Income tax; however it made little difference because: • Taxes were already so low (average family saved $3.75 per year) • The wealthy saved their tax cut; frightened of the future

  8. 1. Presidency • 1930 – Signed the Hawley-Smoot Tariff Act into law • Raised protective tariffs to their highest level ever • Goal: To protect farmers and manufacturers • Result: A Trade War; worldwide trade declined by 40% (backfired)

  9. 1. Presidency • 1932 – RFC (Reconstruction Finance Corporation) • Granted $2B in loans to save big business, banks, and railroads • Attempt at “trickle down” theory or indirect relief • Summary: too little, too late • Fact: unemployment in 1929 = 2 million, 1932 = 12 million

  10. 1. Presidency • 1932 Bonus Army (WWI Vets) marched on Washington, D.C. • Hoover hid in the White House, destroying his chances of reelection • Lost election of 1932 by a landslide to FDR • Booed as he left office • Served in numerous volunteer positions until he was 90, when he died • Hoover is often blamed for the Depression (unfair?)

  11. FACT: Hoover did more than any president before him had done during a depression

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