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. 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
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 1936. 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: 1931-1936 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
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.”
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 1932 10,000 -20,000 WWI Vets and Families Arrived in Washington DC Came to support the Patman Bill $500 bonus to vets
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