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Hoover Struggles with the Depression

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1 Hoover Struggles with the Depression

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

3 Hoover tries to Reassure the Nation
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

4 Hoover tries to Reassure the Nation
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.”

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

6 Hoover’s Philosophy of Government
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

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

8 Hoover Takes Cautious Steps
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

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

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

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

12 Democrats win in 1930 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

13 Democrats win in 1930 Hoovervilles Hooverblankets Hooverflags

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

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

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

17 Government Projects 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

18 Government Projects 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

19 Bonus Army 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

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

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

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

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