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Hoover Struggles with the Depression

Hoover Struggles with the Depression. “Any lack of confidence in the economic future…is foolish” Americans should remain optimistic Go about business as usual. Hoover tries to Reassure the Nation. Believed depression a part of the natural business cycle

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Hoover Struggles with the Depression

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  1. Hoover Struggles with the Depression

  2. “Any lack of confidence in the economic future…is foolish” Americans should remain optimistic Go about business as usual Hoover tries to Reassure the Nation

  3. Believed depression a part of the natural business cycle Periods of growth followed by periods of contraction Best course of action-do nothing allow economy to fix itself Hoover tries to Reassure the Nation

  4. Andrew Mellon-Sec of Treasury: “Let the slump liquidate itself. Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate…It will purge the rottenness out of the system.” Hoover tries to Reassure the Nation

  5. Hoover disagreed with Mellon Hoover supported minimal government intervention in economy believed government could help solve economic problems Hoover tries to Reassure the Nation

  6. Government’s chief function- foster cooperation between competing groups and interests in society Cooperation should be voluntary rather than forced by governent Government should encourage and foster cooperation, not control it Believed in rugged individualism-people should succeed on their own Hoover’s Philosophy of Government

  7. Believed that federal handouts would weaken people’s self-respect Hoover believed charities and local organizations should help the less fortunate Hoover’s Philosophy of Government

  8. Called together leaders of business, banking, and labor Asked employers not to cut wages or lay off workers Asked labor leaders not to demand higher wages or strike Nothing worked After a year-economy still sinking Unemployment still rising Hoover Takes Cautious Steps

  9. Political tide turns against Hoover and Republicans Democrats win more seats on Congress Democrats win in 1930

  10. Republicans lose control of House of Representatives Majority in Senate down to 1 vote Democrats win in 1930

  11. Americans grew more frustrated by Depression-expressed anger Farmers destroyed goods rather than sell it at a loss Democrats win in 1930

  12. Many farmers refused to work their fields and blocked roads to markets -hoped food shortages would raise crop prices Used force to prevent authorities from foreclosing farms Democrats win in 1930

  13. Hoovervilles Hooverblankets Hooverflags Democrats win in 1930

  14. Took active approach to economic troubles Directed federal funds into projects-Boulder Dam Hoped to jumpstart economy Hoover Takes Action

  15. Built dams, roads, and other large projects Congress approved $800 million for these projects (that’s over 10 billion in today’s money) Government Projects

  16. Created Federal Farm Board Supposed to help farmers by keeping crops temporarily off the market Government Projects

  17. National Credit Corporation-give small banks loans-save from bankruptcy Glass-Steagall Banking Act- made loans easier to get Federal Home Loan Bank Act- helped farmers refinance their mortgages Government Projects

  18. Reconstruction Finance Corporation- provide emergency financing to banks and other large businesses In first 5 months, agency loaned $805 million to large corporations Business continued to fail Government Projects

  19. WWI vets arrive in DC Called themselves Bonus Army Came to support bill authorizing govmt to pay WWI vets who had not been adequately compensated for wartime service Bonus Army

  20. Supposed to be paid in 1945 Wanted money immediately Hoover opposed legislation Respected vets right to peaceably assembly Bonus Army

  21. B.A. built a shantytown in DC Senate votes down bill Hoover calls marchers to leave 2,000 refused to budge Bonus Army

  22. President decided to disband B.A. Infantry gassed more than 1,000 people 2 people shot/many injured People outraged Hurt Hoover’s image Bonus Army

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