1. Warm-up:
What would you do to fix the Great Depression? Answer in a 7 sentence paragraph

2. Hoover’s Response

3. Hoover & the Depression
After crash, insisted key to recovery was confidence; the nation’s business is “on a sound and prosperous basis”
Insisted things would improve soon
Had government spend more on new public buildings, roads, parks, & dams
Got business leaders to promise to maintain wages; did for a short time but started dropping wages
Got Congress to pass Hawley-Smoot Tariff to raise tariff on incoming goods but it backfired when European nations raised their tariffs slowing down international trade

4. Hoover & the Depression
Claimed state & local government responsible to provide relief (localism)
Hoover believed in laissez-faire
Set up Reconstruction Finance Corporation
gave government credit to industries, railroads and insurance companies, etc.
Believed that prosperity at the top would help the economy as a whole---"trickle-down theory"

5. ****Business**** Production Jobs
Trickle-down Theory
$$$$$$$$$$$$$$$
****Business**** Production Jobs

6. Bonus Army
WWI veterans promised a pension for fighting in war but would not receive it until 1945; $1,000 bonus
20,000 jobless veterans and their families, "bonus army," marched on Washington DC & camped until they receive the bonus
Most went home but a few thousand stayed and Hoover called out the Army, under General Douglas MacArthur, who used force to drive marchers out of Washington