 Hoover did not believe that the government should become directly involved in helping this “business crisis”.  It was up to the businesses to end this downslide.

 At first, Hoover opposed government relief programs  Hoover called upon private charities, soup kitchens, aid societies and churches to help the needy.

Hoover urged business leaders to keep workers employed and to maintain wages. Trickle Down Theory:  An economic theory when the government helps companies, the companies will then maintain production or increase production, thereby people will maintain their jobs or companies will hire more people and/or raise salaries. The people, in turn, will have more money to spend in the economy.

 This program worked in two ways: 1. it created jobs 2. created projects to benefit the public ex: schools dams paved roads

 This government program loaned money to banks, railroads, and insurance companies with hopes to save thousands of jobs.

 20,000 jobless veterans of WWI  Congress promised them a cash bonus to be paid in 1945  1932, jobless veterans camped out in Washington D.C. hoping to get their bonus early  Hoover used force to remove them and denied their early bonus  Damaged Hoover’s image.