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CHAPTER 12 SECTION 3 HOOVER’S RESPONSE FAILS

CHAPTER 12 SECTION 3 HOOVER’S RESPONSE FAILS. HOOVER DID NOT CAUSE THE DEPRESSION BUT AMERICA LOOKED TO HIM TO SOLVE THE CRISES – HE TRIED TO SOLVE IT HE FAILED TO DISCOVER THE RIGHT FORMULA TO SOLVE THE PROBLEM BUT IT WAS NOT FROM A LACK OF TRYING. Volunteerism.

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CHAPTER 12 SECTION 3 HOOVER’S RESPONSE FAILS

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  1. CHAPTER 12 SECTION 3 HOOVER’S RESPONSE FAILS

  2. HOOVER DID NOT CAUSE THE DEPRESSION BUT • AMERICA LOOKED TO HIM TO SOLVE THE CRISES • – HE TRIED TO SOLVE IT • HE FAILED TO DISCOVER THE RIGHT FORMULA TO • SOLVE THE PROBLEM BUT IT WAS NOT FROM A • LACK OF TRYING

  3. Volunteerism • THE START OF THE DEPRESSION • HOOVER FOLLOWED A HANDS • - OFF POLICY • – HE VIEWED IT AS NATURAL • – PART OF THE BUSINESS CYCLE • – HE THOUGHT GOVERNMENT • SHOULD NOT INTERFERE • HOOVER TURNED TO A POLICY HE • USED DURING THE PAST AS • SECRETARY OF COMMERCE • – HE ASKED BUSINESS AND • INDUSTRIAL LEADERS TO KEEP • EMPLOYMENT, WAGES AND • PRICES AT CURRENT LEVELS

  4. Volunteerism • HOOVER ALSO AKED FOR THE GOVERNMENT TO • REDUCE TAXES, LOWER INTEREST RATES AND CREATE • PUBLIC WORKS PROGRAMS • – HIS PLAN WAS TO PUT MORE MONEY INTO THE HANDS • OF BUSINESSES AND INDIVIDUALS TO ENCOURAGE • MORE PRODUCTION AND CONSUMPTION • HOOVER ALSO REQUESTED THAT WEALTHIER • INDIVIDUALS HIVE MORE MONEY TO CHARITY • – MANY AMERICANS DONATED TO PRIVATE AND • RELIGIOUS CHARITIES • – PRODUCTS WERE DISTRUBUTED TO THOSE IN NEED • HOOVER’S IDEA WAS FOR ALL AMERICANS TO • VOLUNTARILY JOIN FORCES TO COMBAT THE • DEPRESSION

  5. Volunteerism Fails to Bring Relief • HOOVER’S PLAN RELIED TOO • MUCH ON VOLUNTEER • COOPERATION • – HE BELIEVED HE COULD • PERSUADE AMERICANS TO ACT • NOT IN THEIR OWN BEST • INTERESTS BUT IN THOSE OF • THE COUNTRY AS A WHOLE • – VOLUNTEERISM • – DID NOT WORK • – AMERICANS LOOKED OUT FOR • INDIVIDUAL INTERESTS

  6. Volunteerism Fails to Bring Relief • HOOVER ASKED STATE AND • LOCAL GOVERNMENTS TO • PROVIDE MORE JOBS AND • RELIEF MEASURES • – BELIEVED IN LOCALISM • – THE POLICY WHEREBY • PROBLEMS COULD BEST BE • SOLVED AT LOCAL AND • STATE LEVELS • TOWNS AND STATES DID NOT • HAVE THE RESOURCES TO • SOLVE THE PROBLEMS

  7. Volunteerism Fails to Bring Relief • HOOVER BELIEVED DIRECT • FEDERAL AID WAS • UNCONSTITUTIONAL • – PREFERRED RUGGED • INDIVIDUALISM • – PEOPLE COULD BETTER • THEMSELVES THROUGH • THEIR OWN EFFORTS • OVER TIME UNEMPLOYMENT • INCREASED, CHARITIES RAN • LOW ON MONEY AND LOCAL • AND STATE GOVERNMENTS • COULD NO LONGER HELP • – FEDERAL ACTION WAS • REQUIRED

  8. Hoover Adopts Activists Policies • HOOVER FINALLY DECIDES HE • MUST USE FEDERAL RESOURCES • – URGED CONGRESS TO CREATE • THE RECONSTRUCTION FINANCE • CORPORATION BECAUSE THE • ECONOMY SUFFERED FROM A • LACK OF CREDIT • THE RFC: • -GAVE MORE THAN A BILLION • DOLLARS OF GOVERNMENT LOANS • TO RAILROADS AND LARGE • BUSINESSES • LENT MONEY TO BANKS SO THEY • COULD EXTEND MORE LOANS TO • STRUGGLING BUSINESSES

  9. Hoover AdoptsActivists Policies • HOOVER BELIEVED IF THE • GOVERNMENT LENT MONEY TO • BANKERS THEY WOULD LEND IT • TO BUSINESSES • – BUSINESSES WOULD THEN • HIRE WORKERS CAUSING • PRODUCTION AND • CONSUMPTION TO INCREASE • CAUSING THE DEPRESSION TO • END • – TRICKLE-DOWN ECONOMICS • – MONEY POURED INTO THE • TOP OF THE ECONOMIC • PYRAMID WOULD TRICKLE • DOWN TO THE BASE • – DOES NOT WORK • “REAGANOMICS” LATER

  10. Hoover Adopts Activist Policies • RFC DID NOT WORK BECAUSE: • ALL BANKERS DID NOT • INCREASE THEIR LOANS TO BUSINESSES • BUSINESSES DID NOT USE THE • LOANS TO HIRE MORE WORKERS • THE MONEY DID NOT TRICKLE • DOWN TO THE PEOPLE WHO NEEDED IT THE MOST

  11. Hoover Adopts Activist Policies • HOOVER WAS • SUCCESSFUL WITH • ONE THING • – THE MASSIVE PUBLIC • WORKS PROGRAM • APPROVED BY • CONGRESS TO BUILD • THE BOULDER DAM ON • THE COLORADO RIVER • – LATER RENAMED THE • HOOVER DAM

  12. Protests Over Hoover’s Failures • SOME AMERICANS THOUGHT THE • ANSWER TO THE COUNTRY’S • PROBLEMS WAS TO REJECT • CAPITALISM AND ACCEPT • SOCIALISM OR COMMUNISM • – BELIEVED CAPITALISM CREATED • GREAT INEQUALITIES OF WEALTH • AND AN UNHEALTHY • ATMOSPHERE OF COMPETITION • IN SOCIETY

  13. Protests Over Hoover’s Failures • THOUGHT THE DEPRESSION WAS A SIGN THAT CAPITALISM WAS ABOUT TO COLLAPSE • – BELIEVED A STATE RUN ECONOMY WAS THE ONLY WAY OUT OF THE DEPRESSION

  14. Protests Over Hoover’s Failures • FASCISTS APPEALS FROM THE RIGHT FAILED TO HOLD ANY ATTRACTION • – ECONOMIC TROUBLES IN • EUROPE CONTRIBUTED TO THE • RISE TO POWER OF FASCISTS • LEADERS LIKE • BENITO MUSSOLINI IN ITALY • AND ADOLF HITLERIN • GERMANY • - NO FASCIST GAINED POWER IN • THE U.S.

  15. Bonus Army • WORLD WAR I VETERANS CAME TO WASHINGTON DC • WANTING THE BONUS CONGRESS HAD PROMISED THEM • - BECAME KNOWN AS THE BONUS ARMY • 1924 CONGRESS PASSED THE ADJUSTED • COMPENSATION ACT WHICH PROVIDED A LUMP SUM • PAYMENT OT VETERANS IN 1945 • – MANY VETERANS WANTED THEIR MONEY EARLY SO • THEY COULD SUPPORT THEMSELVES

  16. Bonus Army • CONGRESS AGREED AND PASSED A BILL TO GIVE • THEM THEIR MONEY EARLY • – PRESIDENT HOOVER VETOED THE BILL • – HE BELIEVED MANY OF THE VETS DID NOT NEED • THEIR MONEY EARLY • IN PROTEST VETERANS GROUPS MARCHED ON • WASHINGTON • – ALMOST 20,000 SET UP CAMPS • – CAUSED A RIOT WHEN POLICE TRIED TO RUN • THEM OUT

  17. Bonus Army • PRESIDENT HOOVER • CALLED FOR GENERAL • DOUGLAS MACARTHUR • AND FEDERAL TROOPS • TO CLEAR THE BONUS • ARMY OUT OF THE • CAMPS

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