Warm-up: What would you do to fix the Great Depression? Answer in a 7 sentence paragraph

Hoover’s Response

Hoover & the Depression After crash, insisted key to recovery was confidence; the nation’s business is “on a sound and prosperous basis” Insisted things would improve soon Had government spend more on new public buildings, roads, parks, & dams Got business leaders to promise to maintain wages; did for a short time but started dropping wages Got Congress to pass Hawley-Smoot Tariff to raise tariff on incoming goods but it backfired when European nations raised their tariffs slowing down international trade

Hoover & the Depression Claimed state & local government responsible to provide relief (localism) Hoover believed in laissez-faire Set up Reconstruction Finance Corporation gave government credit to industries, railroads and insurance companies, etc. Believed that prosperity at the top would help the economy as a whole---"trickle-down theory"

****Business**** Production Jobs Trickle-down Theory $$$$$$$$$$$$$$$ ****Business**** Production Jobs

Bonus Army WWI veterans promised a pension for fighting in war but would not receive it until 1945; $1,000 bonus 20,000 jobless veterans and their families, "bonus army," marched on Washington DC & camped until they receive the bonus Most went home but a few thousand stayed and Hoover called out the Army, under General Douglas MacArthur, who used force to drive marchers out of Washington