Hoover’s Reaction

Election of 1928 Hoover wins Hoover is confident it is a time of prosperity

Hoover’s Response to the Crash Laissez-faire (do nothing) –The problem will fix itself “Rugged Individualism” –People will succeed on their own efforts Opposes direct relief Suggests businesses avoid cutting wages or laying off workers No official relief action taken at first

Congressional Election of 1930 Hoover is a Republican –He is becoming unpopular, therefore the Republicans are becoming unpopular Democrats gain seats in Congress

Hoover’s Actions Finally starts to listen to criticism Makes some changes Create work projects

Boulder Dam Hoover approves the building of the dam to create jobs in addition to other projects Spend $800 million Put money in the economy = more jobs

Federal Home Loan Bank Act Lowered mortgage rates Helps farmers refinance their loans –Avoid losing the farms to the banks (foreclosure)

Reconstruction Finance Corporation January 1932 –Gives emergency money to banks, life insurance companies and railroads “Trickle Down” Economics –Put money in at the top and it will work its way down –Give money to big business and it will make its way to the people…eventually

The Bonus Army July 1932 –About 10,000 WWI vets went to Washington DC –Wanted bonus ($500) to be paid immediately –Hoover was kind at first Hoover forced them to leave –Called in troops –Society was outraged

Election of 1932 Hoover vs. Franklin Roosevelt (FDR) –FDR wins 2/3 majority While FDR is waiting to take office, he brainstorms many programs to help problems

FDR “A new deal for the American people” –Campaign slogan Fireside Chats –Discusses problems with Americans over the radio, very honest and reassuring

First Hundred Days March 9 – June 16, 1933 –15 pieces of legislation passed Creation of programs to aid in recovery