1. Hoover's Response to the Great Depression

2. I. Hoover – the man strong belief in the power of the individual
successful businessman, well-respected, well-known
humanitarian – believed in helping others
believed in small government

4. President Herbert Hoover, 1928:
When the war closed… [we] were challenged with a peace-time choice between the American system of rugged individualism and a European philosophy… of paternalism and state socialism…

5. By adherence to the principles of decentralized self-government, ordered liberty, equal opportunity, and freedom to the individual, our American experiment in human welfare has yielded a degree of well-being unparalleled in the world. It has come nearer to the abolition of poverty, to the abolition of fear of want, than humanity has ever reached before…

7. II. Conservative / Status Quo
rugged individualism
1. “people can succeed through their own efforts”
B. laissez faire , but not a “do nothing”
1. felt govt. could solve economic problem in a limited role
C. believed in the business cycle

9. Soon realized that doing nothing was NOT a policy at all…
“Hoover Blankets”
“Hoover Flags”
“Hoovervilles”

10. III. Reliance on ‘volunteerism’
‘Encouraged’, but didn’t legislate
asked business and labor to work together toward common goals
asked Congress to reduce taxes, lower interest rates, & create public works projects
asked wealthy to give more $ to charity

11. IV. Hoover’s Programs “Give a Job” campaign
1. businesses should create jobs
B ~ Democrats win majority in Congress
put money in at business level
Reconstruction Finance Corp. – 1.5 million to banks, RRs, etc…

12. Trickle Down Theory ~ Andrew Mellon
$ from the government
Trickle Down Theory ~ Andrew Mellon
Businesses
More Jobs
Wages = $$$
Unemployed

14. V. Hoover = symbol of failure
Rise of socialist & communist parties in U.S.
1. some blamed capitalism and
democracy for the Depression
2. but… calls for revolution could NOT
compete with the American dream

15. VI. Bonus Army - Summer 1932
Hoover vetoed a bill passed in Congress to grant the bonuses
asked Army to disperse the veterans
public outraged at use of force
hopes of reelection are dashed