5 Hoover writes a book called… American Individualism (1922) - “Volunteerism”…- “a cooperative, socially responsible economic order”…Hoover’s Philosophy1) Summarize Hoover’s philosophy on government…Minimal government involvement in the economy- The government’s role was to facilitate cooperation between business & labor2) I&E Hoover’s “rugged individualism.”- People succeed through their own efforts- No welfare or government handouts- Charities should provide aid to the poor
6 Hoover’s Philosophy: Power of Reason Humanitarian Gov. should facilitate not control“Rugged Individualism”-Survival of the fittest
7 Hoover’s Philosophy II No Handouts!No vast Federal Bureaucracy/ No Big Gov.Use State and Local GovernmentCharitable Organizations
9 Hoover Takes Cautious Steps Called key economic and business leaders to the White HouseHe 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 unemployedFederal aid would only be a disservice
12 3) What was the nation’s economic situation in 1930 and how did voters respond in the 1930 Congressional (mid-term) elections?Democrats1930 mid-term electionsWin HoR for 1st time since 1916Gain 8 seats in the Senate
13 4) Describe how the Boulder Dam project helped those unemployed by the Depression and benefited many other Americans.
14 Boulder Dam 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
15 Boulder Dam Project $700 million dollar public works project 726ft. High and 1,244 ft. longProvided electricity and flood control. (CO river basin)Provided thousands of jobsWater source for LA and LV
23 Boulder (Hoover) Dam Facts Location: AZ & NVBuilt:Cost: $165 millionEmployed: 8,000 workersPurpose: Hydroelectric/ Flood controlBoulder (Hoover) Dam Facts660 ft. Thick726 ft. tallConcrete = 2 lane road fromSeattle, WA, to Miami, FL
30 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.”
38 Hoover Takes ActionFederal Farm Board – It would buy crops to keep them off the market. (Farm Cooperatives)National Credit Corporation – Big banks loaned $ to smaller banks.
39 Hoover: Direct Intervention * Federal Home Loan Bank ActLowered mortgage rates for homeownersAllowed farms to refinance their loans to avoid foreclosure.
40 Hoover’s Direct Action II * Reconstruction Finance Corp$2 billion in emergency financeBanksLife Insurance Co.RailroadsLarge Businesses
41 Critics Of RFC It would not trickle down Benefited corporations Poor still needed direct relief“Too little too late.”
42 Hoover’s Actions1931 President’s Organization for Unemployment Relief (POUR)encouraged local groups to raise money to help the unemployedFederal aid would only be a disserviceHe focused on restoring business confidenceReconstruction Finance Corporation (RFC)Provided gov’t credit to ailing industries like banks, RRs, etc. to stimulate economic activityProblem was low consumer demand, not supply!
43 The Bonus Army Spring of 1932 10,000 -20,000 WWI Vets and Families Arrived in Washington DCCame to support the Patman Bill$500 bonus to vets
63 Hoover encourages Americans to remain confident
64 America’s Reaction to Hoover Democrats1930 mid-term electionsWin HoR for 1st time since 1916Gain 8 seats in the Senate1932 nominate FDRGov. of NYPledges a new deal for the American peopleOverwhelming victory