Do Now.Do Now. Brainstorm some possible solutions Brainstorm some possible solutions

to the problems that existed during to the problems that existed during the Great Depression the Great Depression

Hoover’s Reaction to Hoover’s Reaction to the Great Depressionthe Great Depression

Chapter 21 Section 3Chapter 21 Section 3

Hoover reacts to the Great Hoover reacts to the Great DepressionDepression

Herbert Hoover (1929-33)Herbert Hoover (1929-33) Hoover had been a skillful Hoover had been a skillful

businessman—people were confident businessman—people were confident in himin him– Optimistic view Optimistic view

Believed that America should recover Believed that America should recover through individual effort through individual effort

NOT through government assistanceNOT through government assistance– What did Hoover mean by this? What is What did Hoover mean by this? What is

the difference?the difference?

Hoover Opposes Direct Hoover Opposes Direct ReliefRelief

People see a clear need for direct People see a clear need for direct government assistance—money, food, or government assistance—money, food, or resources given directly from the resources given directly from the government to the needygovernment to the needy

Hoover opposes thisHoover opposes this– ““The people support the Government the The people support the Government the

Government should not support the people”Government should not support the people” What does this mean?What does this mean? Why do you think Hoover felt so strongly about this Why do you think Hoover felt so strongly about this

even though people were starving?even though people were starving?– Believes in Believes in Rugged IndividualismRugged Individualism

Rugged IndividualismRugged Individualism

VoluntarismVoluntarism Belief the volunteer Belief the volunteer

efforts were a better efforts were a better choice than choice than government aidgovernment aid

Many Americans Many Americans agree, but it quickly agree, but it quickly becomes obvious becomes obvious that more help is that more help is neededneeded– Hoover still firmly Hoover still firmly

sticks by his sticks by his philosophies/policiesphilosophies/policies

Asked businesses to keep wages, employment, and prices at current levels

Called for tax cuts, lower interest rates, and public works

Asked wealthy to donate more money to charity

Hoover saw that he must do something.

But volunteerism failed.

• Towns and states didn’t have the necessary resources to deal with the depression.

• Hoover did not support direct federal aid to individuals.

Hoover put his faith in localism, a policy whereby problems are best solved at the local and state levels.

EconomyEconomy Hoover’s advisors want total a Hoover’s advisors want total a laissez-laissez-

fairefaire approach approach – Let businesses recover on their ownLet businesses recover on their own

Hoover actually intervenes Hoover actually intervenes – Urges business to maintain pre-depression Urges business to maintain pre-depression

levels of production and employment—levels of production and employment—hoping to stimulate the economyhoping to stimulate the economy

Supports many government public Supports many government public works projects—works projects—Hoover Dam Hoover Dam (Boulder Dam)(Boulder Dam)

One policy that did succeed was the construction of Boulder Dam, (later renamed Hoover Dam) across the Colorado River.Started in 1930, the huge dam provided power for more than a million people and irrigation for farm land, and brought needed jobs to the Southwest.

Hoover DamHoover Dam

Other Government Other Government AssistanceAssistance

Federal Farm Board (FFB) (loans to Federal Farm Board (FFB) (loans to farms) farms)

Reconstruction Finance Corporation Reconstruction Finance Corporation (RFC) (loans to businesses)(RFC) (loans to businesses)– Preview a major shift in government Preview a major shift in government

policy, even though Hoover policy, even though Hoover administration fails to end depressionadministration fails to end depression

The RFC gave billions of dollars to banks and large businesses.The idea was that they would lend to, and invest in, struggling businesses who would hire workers and thus end the depression. The RFC failed when businesses did not hire more workers.

In 1932, Hoover urged Congress to create the Reconstruction Finance Corporation (RFC). The RFC employed a policy known as trickle-down economics.

America is ready for a America is ready for a changechange

Hoover is hated in 1932Hoover is hated in 1932 Increased radicalism—communism, Increased radicalism—communism,

socialism socialism Increasing activism against the Increasing activism against the

administration administration

• Some blamed Hoover and some blamed capitalism.• Some were World War I veterans who wanted a

bonus that was promised to them.• In 1932, those veterans formed the Bonus Army

and marched on Washington.

Many grew disillusioned during the Great Depression.

In the summer of 1932, almost 20,000 veterans set up camps and occupied vacant buildings. In July, police tried to evict them and riots erupted.

The eviction of the Bonus Army doomed Hoover’s bid for re-election. Americans were ready for new leadership and a greater role for the government in solving problems.

Hoover ordered General Douglas MacArthur to remove the veterans. He used tear gas, cavalry, tanks, and troops with fixed bayonets.Press photos of troops using excessive force angered the American public.