1. Ch 14 Sec 3- Hoover Struggles with the Depression

2. 14.3 Hardship & Suffering During the Depression
  Objective… Explain Hoover’s initial response to the Great Depression  

3. Hoover tries to reassure Americans
Remain optimistic
Business as usual
Government could play a limited role in helping to solve the problems.

5. Hoover writes a book called… American Individualism (1922)
- “Volunteerism”…
- “a cooperative, socially responsible economic order”…
Hoover’s Philosophy
1) Summarize Hoover’s philosophy on government…
Minimal government involvement in the economy
- The government’s role was to facilitate cooperation between business & labor
2) I&E Hoover’s “rugged individualism.”
- People succeed through their own efforts
- No welfare or government handouts
- Charities should provide aid to the poor

6. Hoover’s Philosophy: Power of Reason Humanitarian
Gov. should facilitate not control
“Rugged Individualism”-Survival of the fittest

7. Hoover’s Philosophy II
No Handouts!
No vast Federal Bureaucracy/ No Big Gov.
Use State and Local Government
Charitable Organizations

9. Hoover Takes Cautious Steps
Called key economic and business leaders to the White House
He asked for promises of no more layoffs or cut wages.
Helped Private Charities generate contributions.
1931 President’s Organization for Unemployment Relief (POUR)
encouraged local groups to raise money to help the unemployed
Federal aid would only be a disservice

10. More Action Needed Economy Shrinking Unemployment rising
Increased Bankruptcy
General Misery
Soup Kitchens
Shantytowns
Hoboes

12. 3) What was the nation’s economic situation in 1930 and how did voters respond in the 1930 Congressional (mid-term) elections?
Democrats
1930 mid-term elections
Win HoR for 1st time since 1916
Gain 8 seats in the Senate

13. 4) Describe how the Boulder Dam project helped those unemployed by the Depression and benefited many other Americans.

14. Boulder Dam Project I Approved in 1928
Construction began in 1930 and ended in 1936.
Boulder City , NV Housed the workers.
Hoover financed the construction by using future profits of electricity

15. Boulder Dam Project $700 million dollar public works project
726ft. High and 1,244 ft. long
Provided electricity and flood control. (CO river basin)
Provided thousands of jobs
Water source for LA and LV

23. Boulder (Hoover) Dam Facts
Location: AZ & NV
Built:
Cost: $165 million
Employed: 8,000 workers
Purpose: Hydroelectric/ Flood control
Boulder (Hoover) Dam Facts
660 ft. Thick
726 ft. tall
Concrete = 2 lane road from
Seattle, WA, to Miami, FL

25. Americans Frustrated by 1930
Democrats win more seats in Congress
Farmers burned crops and dumped milk
“Farm Holidays”
Farmers block Food
“Blame it on Hoover!”

26. 5) What actions were taken by American farmers to protest the economic conditions in the agricultural community?

27. Farmers’ Holiday Association Meeting

30. 6) Give some examples of how the American public criticized and made fun of President Hoover. - “Hoover-villes”… - “Hoover -blankets”… - “Hoover-flags”… “Mellon pulled the whistle Hoover rang the bell Wall Street gave the signal And the country went to Hell.”

34. “Mellon pulled the whistle Hoover Rang the bell Wall Street gave the signal And the country went to hell.”

38. Hoover Takes Action
Federal Farm Board – It would buy crops to keep them off the market. (Farm Cooperatives)
National Credit Corporation – Big banks loaned $ to smaller banks.

39. Hoover: Direct Intervention
* Federal Home Loan Bank Act
Lowered mortgage rates for homeowners
Allowed farms to refinance their loans to avoid foreclosure.

40. Hoover’s Direct Action II
* Reconstruction Finance Corp
$2 billion in emergency finance
Banks
Life Insurance Co.
Railroads
Large Businesses

41. Critics Of RFC It would not trickle down Benefited corporations
Poor still needed direct relief
“Too little too late.”

42. Hoover’s Actions
1931 President’s Organization for Unemployment Relief (POUR)
encouraged local groups to raise money to help the unemployed
Federal aid would only be a disservice
He focused on restoring business confidence
Reconstruction Finance Corporation (RFC)
Provided gov’t credit to ailing industries like banks, RRs, etc. to stimulate economic activity
Problem was low consumer demand, not supply!

43. The Bonus Army Spring of 1932 10,000 -20,000 WWI Vets and Families
Arrived in Washington DC
Came to support the Patman Bill
$500 bonus to vets

47. The Bonus Army Camp

49. The Bonus Army

50. 10) What was Hoover’s opinion of the Bonus Army
10) What was Hoover’s opinion of the Bonus Army? 11) What happened to the Bonus Army?

51. Bonus Marchers leaving…

53. General
McArthur
Directing
removal of the
Bonus Army

55. Bonus Army II The bill was defeated The marchers set up camps
Hoover thought they were communists
Some food was provided

57. Disbanding the Bonus Army
2,000 marchers refused to leave
Hoover became nervous
What if the angry group became violent?
Hoover calls out the US Army

58. Violence in DC
1,000 soldiers under MacArthur and Eisenhower are called out.
1,000 people gassed
Two people shot, one blinded
Camp was burned down

61. Impact on Hoover MacArthur did not respond to orders
Americans were outraged and stunned
Hoover’s image suffered
Hoover took the blame
Hoover vs FDR in 1932

63. Hoover encourages Americans to remain confident

64. America’s Reaction to Hoover
Democrats
1930 mid-term elections
Win HoR for 1st time since 1916
Gain 8 seats in the Senate
1932 nominate FDR
Gov. of NY
Pledges a new deal for the American people
Overwhelming victory