1. 12.3 Hoover’s Response Fails

2. Objectives
Discuss how Hoover’s initial conservative response to the Great Depression failed
Explain the changes in the President’s policies as the crisis continued
Describe how Americans reacted to Hoover’s relief programs

3. President Hoover Believed Americans need to be optimistic
Troubles of the depression would pass soon
Rejected the idea of direct gov. aid
Rugged Individualism: belief that success comes through individual effort and private enterprise
Volunteerism:
Charities can help, not the federal gov.
FAIL! Relied too much on voluntary cooperation

4. Hoover’s Cabinet Proposed a laissez-faire approach to economy
Sec. of the Treasury, Andrew Mellon urged this approach
Trickle-Down Economics
Money poured into the top of the economic pyramid will trickle down to the base
BUT! Money did not reach the people who needed it the most
Reconstruction Finance Corporation (RFC)

5. Congress and State Governments
Funded several public-works programs
$800 million was spent on these programs
$800 public buildings, 37,000 miles of highways
Hoover Dam

6. Bonus Army
WWI vets were promised a bonus in 1945 for serving in the war– wanted it early
Congress agreed but Hoover vetoed
20,000 vets arrived in D.C. to protest
General MacArthur called in to end protests
Used tear gas and bayonets