Presentation on theme: "Hoover’s Handling of the Hardship How does Hoover’s policies increase the depression?"— Presentation transcript:
Hoover’s Handling of the Hardship How does Hoover’s policies increase the depression?
Hoover’s tries to reassure the country Hoover says economic downturn is a normal part of the cycle of capitalism ● Says businesses will fix the problem, no need for government assistance -Charities should help the needy, not the govt -Says his job is to keep govt from over-spending during crisis
Hoover to Business: We Need Help ● Works with leaders of business, banking, & labor asking: 1) employers, please don’t cut wages or lay off workers 2) bankers, please help charities generate $ for the poor 3) unions, please do not go on strike ● Doesn’t help, since many businesses are also suffering and going bankrupt
Hoover takes some action - Dam provided electricity, water supply, & flood control, but most importantly construction jobs (temporary relief) Since business isn’t creating jobs, Hoover authorizes construction on Boulder Dam (renamed Hoover Dam)
More Government action ● Cooperatives: Private entities work together including, Fed. Farm Board: a cooperative aimed at raising crop prices Federal Home Loan Bank Act (1932) National Credit Corporation: loaned $ to smaller banks -Lowered mortgage rates & allowed farmers to refinance Reconstruction Finance Corporation (1932) -Authorized up to $2 billion for emergency financing to banks & ins. companies Although these actions helped, for many, this was too little, too late
Hoover vs. WWI Bonus Army 1932: Bonus Expeditionary Force (Bonus Army), protests that they did not get their $500 WW I bonuses yet! They argue that the money was approved in 1924, before the crash and they deserve their funds ● Violence erupts as Patman Bill (giving bonuses) is voted down by Congress Army sends in Gen. MacArthur & Maj. Eisenhower to stop rioting - 1,000 ppl tear gassed - 11-mo. old baby dies, 8-yr. old boy blinded - Two killed, hundreds injured