1. President Hoover
ESSENTIAL QUESTION: Why was Herbert Hoover unable to cope with the Great Depression?

2. TEKS and Objectives We will… I will…
(16C) analyze the effects of the Great Depression
Evaluate President Hoover’s actions during the Great Depression
Summarize the Causes and Effects of the Great Depression through a simulation

3. Hoover’s Philosophy “Rugged Individualism” Laissez-Faire Economics
Idea that Americans are tough and will work through their problems without help
Giving $$ to unemployed undermined American work ethics/reduced incentive to work
Laissez-Faire Economics
Not government’s job to fix economy or give charity
Believed low prices  consumers resume buying  increase production  more jobs

4. Leading Experts Were Wrong
Lack of aggregate (total) demand
Americans could not buy goods no matter how cheap
Federal Reserve
Reduced money supply making things worse

5. Hoover Finally Responds
Hoover’s Reforms
Cut taxes
Increased federal spending on public projects
Bought surplus farm crops
Reconstruction Finance Corporation
Gave emergency loans to banks and businesses (“trickle down effect”)

6. Too Little, Too Late: Effects of the Depression
Business Failures
100,000 failed businesses between
High Unemployment
Reached 25% (13 million)
“Hoovervilles”
Shanty towns for homeless
People lived in makeshift shacks