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Ch 14 Sec 3- Hoover Struggles with the Depression. 14.3 Hardship & Suffering During the Depression. Objective…. - Explain H oover’s initial response to the Great Depression. Hoover tries to reassure Americans. Remain optimistic Business as usual
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14.3 Hardship & Suffering During the Depression Objective…. - Explain Hoover’s initial response to the Great Depression.
Hoover tries to reassure Americans • Remain optimistic • Business as usual • Government could play a limited role in helping to solve the problems.
Hoover writes a book called… • American Individualism (1922) • - “Volunteerism”… • - “a cooperative, socially responsible economic order”…
Hoover’s Philosophy: • Power of Reason • Humanitarian • Gov. should facilitate not control • “Rugged Individualism”-Survival of the fittest
Hoover’s Philosophy II • No Handouts! • No vast Federal Bureaucracy/ No Big Gov. • 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. • 1931 President’s Organization for Unemployment Relief (POUR) • encouraged local groups to raise money to help the unemployed • Federal aid would only be a disservice
More Action Needed • Economy Shrinking • Unemployment rising • Increased Bankruptcy • General Misery • Soup Kitchens • Shantytowns • Hoboes
3) What was the nation’s economic situation in 1930 and how did voters respond in the 1930 Congressional (mid-term) elections? • Democrats • 1930 mid-term elections • Win HoR for 1st time since 1916 • Gain 8 seats in the Senate
4) Describe how the Boulder Dam project helped those unemployed by the Depression and benefited many other Americans.
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
Boulder (Hoover) Dam • Location: AZ & NV • Built: 1931-1936 • Cost: $165 million • Employed: 8,000 workers • Purpose: Hydroelectric/ Flood control • Boulder (Hoover) Dam Facts • 660 ft. Thick • 726 ft. tall • Concrete = 2 lane road from • Seattle, WA, to Miami, FL
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!”
5) What actions were taken by American farmers to protest the economic conditions in the agricultural community?
6) Give some examples of how the American public criticized and made fun of President Hoover.- “Hoover-villes”… - “Hoover -blankets”… - “Hoover-flags”…“Mellon pulled the whistle Hoover rang the bell Wall Street gave the signal And the country went to Hell.”
“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.”
Hoover’s Actions • 1931 President’s Organization for Unemployment Relief (POUR) • encouraged local groups to raise money to help the unemployed • Federal aid would only be a disservice • He focused on restoring business confidence • Reconstruction Finance Corporation (RFC) • Provided gov’t credit to ailing industries like banks, RRs, etc. to stimulate economic activity • Problem was low consumer demand, not supply!
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
10) What was Hoover’s opinion of the Bonus Army?11) What happened to the Bonus Army?