1. Hoover as President Unit 3 Section 1 Part 2

2. A. Herbert Hoover’s Philosophy Stock Market crashed 1 year into Hoover’s presidency Stock Market crashed 1 year into Hoover’s presidency 1. Rugged Individualism 1. Rugged Individualism –Means that people should take care of themselves and believe in their own power to do things –gov’t does not need to get involved (no welfare)

3. 2. The Associative State 2. The Associative State Thought it was up to business owners to voluntarily make the economy fairer and more efficient Thought it was up to business owners to voluntarily make the economy fairer and more efficient The idea that businesses should work together with gov’t was called the Associative State The idea that businesses should work together with gov’t was called the Associative State Hoover often called meetings with prominent business leaders on how to achieve national goals Hoover often called meetings with prominent business leaders on how to achieve national goals

4. One of Hoover’s biggest projects was building the Hoover Dam One of Hoover’s biggest projects was building the Hoover Dam The gov’t funded its building and six private companies provided the workers The gov’t funded its building and six private companies provided the workers In Hoover’s view, the Dam was a symbol of how gov’t and business worked together In Hoover’s view, the Dam was a symbol of how gov’t and business worked together

5. B. Hoovers Response to the Depression 1. Voluntary Cooperation 1. Voluntary Cooperation -Hoover pushed for loans to strengthen farm Cooperatives -Hoover pushed for loans to strengthen farm Cooperatives -organizations owned and controlled by its members who work together for a common goal -organizations owned and controlled by its members who work together for a common goal If groups worked together, then workers would have plenty of money If groups worked together, then workers would have plenty of money 2. Direct Action 2. Direct Action Unfortunately, Hoover found it very difficult to get people to cooperate Unfortunately, Hoover found it very difficult to get people to cooperate In disasters, individuals made decisions that were best for them In disasters, individuals made decisions that were best for them Businesses made wage cuts and fired people Businesses made wage cuts and fired people

6. Hoover created the Reconstruction Finance Corporation Hoover created the Reconstruction Finance Corporation -gave $2 billion loans to struggling banks, insurance companies, and other institutions -gave $2 billion loans to struggling banks, insurance companies, and other institutions Hoover also created the Federal Home Loan Bank Hoover also created the Federal Home Loan Bank –encouraged home-building and stopped some foreclosures The RFC and the FHLB were historic, because it was the first time that gov’t provided direct aid to people The RFC and the FHLB were historic, because it was the first time that gov’t provided direct aid to people

7. Hoover also raised the tariff Hoover also raised the tariff Called the Hawley-Smoot Tariff Called the Hawley-Smoot Tariff –this was a disaster, because Europeans responded by heavily taxing American imports –No one made money

8. 3. Nation Responds to Hoover Millions of people were losing jobs Millions of people were losing jobs Hoover stayed unrealistically optimistic Hoover stayed unrealistically optimistic Many thought Hoover was a liar Many thought Hoover was a liar Economy kept getting worse Economy kept getting worse Then, veterans marched to Washington in order to receive a Bonus from WWI Then, veterans marched to Washington in order to receive a Bonus from WWI Called the Bonus Army Called the Bonus Army Hoover couldn’t afford it Hoover couldn’t afford it When they refused to leave, he ordered the military to use tear gas When they refused to leave, he ordered the military to use tear gas So… Hoover wasn’t popular when the next election came around So… Hoover wasn’t popular when the next election came around