Presentation on theme: "Ch 14 Sec 3- Hoover Struggles with the Depression."— Presentation transcript:
Ch 14 Sec 3- Hoover Struggles with the Depression
Objective…. - Explain Hoover’s initial response to the Great Depression Hardship & Suffering During the Depression
Hoover tries to reassure Americans Remain optimistic Business as usual Government could play a limited role in helping to solve the problems.
Hoover’s Philosophy 1) Summarize Hoover’s philosophy on government… -Minimal government involvement in the economy - The government’s role was to facilitate cooperation between business & labor 2) I&E Hoover’s “rugged individualism.” - People succeed through their own efforts - No welfare or government handouts - Charities should provide aid to the poor Hoover writes a book called… American Individualism (1922) - “Volunteerism”… - “a cooperative, socially responsible economic order”…
Hoover’s Philosophy: Power of Reason Humanitarian Gov. should facilitate not control “Rugged Individualism”- Survival of the fittest
Hoover’s Philosophy II No Handouts! No vast Federal Bureaucracy/ No Big Gov. Use State and Local Government Charitable Organizations
Hoover Takes Cautious Steps Called key economic and business leaders to the White House He asked for promises of no more layoffs or cut wages. Helped Private Charities generate contributions President’s Organization for Unemployment Relief (POUR) – encouraged local groups to raise money to help the unemployed – Federal aid would only be a disservice
More Action Needed Economy Shrinking Unemployment rising Increased Bankruptcy General Misery Soup Kitchens Shantytowns Hoboes
3) What was the nation’s economic situation in 1930 and how did voters respond in the 1930 Congressional (mid-term) elections? Democrats 1930 mid-term elections Win HoR for 1 st time since 1916 Gain 8 seats in the Senate
4) Describe how the Boulder Dam project helped those unemployed by the Depression and benefited many other Americans.
Boulder Dam Project I Approved in 1928 Construction began in 1930 and ended in Boulder City, NV Housed the workers. Hoover financed the construction by using future profits of electricity
Boulder Dam Project $700 million dollar public works project 726ft. High and 1,244 ft. long Provided electricity and flood control. (CO river basin) Provided thousands of jobs Water source for LA and LV
Boulder (Hoover) Dam Location: AZ & NV Built: Cost: $165 million Employed: 8,000 workers Purpose: Hydroelectric/ Flood control Boulder (Hoover) Dam Facts 660 ft. Thick 726 ft. tall Concrete = 2 lane road from Seattle, WA, to Miami, FL
Americans Frustrated by 1930 Democrats win more seats in Congress Farmers burned crops and dumped milk “Farm Holidays” Farmers block Food “Blame it on Hoover!”
5) What actions were taken by American farmers to protest the economic conditions in the agricultural community?
Farmers’ Holiday Association Meeting
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.”
“Mellon pulled the whistle Hoover Rang the bell Wall Street gave the signal And the country went to hell.”
Hoover Takes Action Federal Farm Board – It would buy crops to keep them off the market. (Farm Cooperatives) National Credit Corporation – Big banks loaned $ to smaller banks.
Hoover: Direct Intervention * Federal Home Loan Bank Act – Lowered mortgage rates for homeowners – Allowed farms to refinance their loans to avoid foreclosure.
Hoover’s Direct Action II * Reconstruction Finance Corp – $2 billion in emergency finance Banks Life Insurance Co. Railroads Large Businesses
Critics Of RFC It would not trickle down Benefited corporations Poor still needed direct relief “Too little too late.”
Hoover’s Actions 1931 President’s Organization for Unemployment Relief (POUR) – encouraged local groups to raise money to help the unemployed – Federal aid would only be a disservice He focused on restoring business confidence – Reconstruction Finance Corporation (RFC) – Provided gov’t credit to ailing industries like banks, RRs, etc. to stimulate economic activity – Problem was low consumer demand, not supply!
The Bonus Army Spring of , ,000 WWI Vets and Families Arrived in Washington DC Came to support the Patman Bill $500 bonus to vets
The Bonus Army Camp
The Bonus Army
10) What was Hoover’s opinion of the Bonus Army? 11) What happened to the Bonus Army?
Bonus Marchers leaving…
General McArthur Directing removal of the Bonus Army
Bonus Army II The bill was defeated The marchers set up camps Hoover thought they were communists Some food was provided
Disbanding the Bonus Army 2,000 marchers refused to leave Hoover became nervous What if the angry group became violent? Hoover calls out the US Army
Violence in DC 1,000 soldiers under MacArthur and Eisenhower are called out. 1,000 people gassed Two people shot, one blinded Camp was burned down
Impact on Hoover MacArthur did not respond to orders Americans were outraged and stunned Hoover’s image suffered Hoover took the blame Hoover vs FDR in 1932
Hoover encourages Americans to remain confident
America’s Reaction to Hoover Democrats – 1930 mid-term elections Win HoR for 1 st time since 1916 Gain 8 seats in the Senate – 1932 nominate FDR Gov. of NY Pledges a new deal for the American people Overwhelming victory