Learning Objectives:
Section 3 - Hoover Struggles with the Depression
• 1. Explain Hoover’s initial response to the
Depression.
2. Summarize the actions Hoover took to help the economy and the hardship suffered by
Americans.
3. Describe the Bonus Army and Hoover’s actions toward it.
SECTION 3: HOOVER
STRUGGLES WITH THE
DEPRESSION
• After the stock market crash, President Hoover tried to reassure
Americans
• He said, “Any lack of confidence in the economic future . . . Is foolish” • He recommended business as usual
• Asked businesses not to lay off employees
Herbert
Hoover
HOOVER’S PHILOSOPHY
Hoover believed it was the individuals job to take care of themselves, not the governments • Hoover was not quick to react to the depression
• He believed in “rugged individualism” – the idea that people succeed through their own efforts
• People should take care of themselves, not depend on governmental hand-outs
• He said people should
“pull themselves up by their bootstraps”
Chapter 14: Section 3
Guided Reading Questions
• What was Hoover’s philosophy of government? – He believed that a chief function of govt was to encourage voluntary cooperation among competing interest groups;
– He believed that federal govt should guide relief measures but not directly participate in them
HOOVER’S SUCCESSFUL
DAM PROJECT
• Hoover successfully organized and authorized the construction of the
Boulder Dam (Now called the Hoover Dam)
• The $700 million project was the world’s tallest dam (726 feet) and the second largest (1,244 feet long) • The dam currently provides electricity, flood control and water for 7 western states
Any dam questions?
HOOVER TAKES ACTION:
TOO LITTLE TOO LATE
•
•
•
•
Hoover’s flurry of activity came too late to save the economy or his job
Hoover gradually softened his position on government intervention in the economy
He created the Federal Farm
Board to help farmers
He also created the National
Credit Organization that helped smaller banks
His Federal Home Loan Bank
Act and Reconstruction
Finance Corp were two measures enacted to protect people’s homes and businesses Chapter 14: Section 3
Guided Reading Questions
• Responses and Economics Results
• What was Hoover’s initial reaction to the stock market crash of 1929?
– CAUTION: urged key leaders to work together to provide solutions and to act in ways that would not make the economic situation worse.
Chapter 14: Section 3
Guided Reading Questions
• What was the nation’s economic situation in
1930?
– Continued to worsen;
– More companies went out of business;
• Unemployment continued to rise;
– Soup kitchens, shantytowns, and hoboes became common; • The misery to ordinary people continued to grow
Chapter 14: Section 3
Guided Reading Questions
• How did voters in 1930 respond to this situation? – Republicans lost control of the House of
Representatives.
– Saw their majority in the Senate dwindle to one vote.
Chapter 14: Section 3
Guided Reading Questions
• What did Hoover do about the economic situation? – Directed federal funds into public works projects,
• such as Boulder/Hoover Dam, to jump-start the economy and create jobs;
– Backed a series of federal programs,
• including the Federal Farm Board, the National Credit
Corporation, the Glass-Steagall Banking Act, the Federal
Home Loan Bank Act, and the Reconstruction Finance
Cooperation.
Chapter 14: Section 3
Guided Reading Questions
• How did the economy respond to his efforts? – Economy continued to deteriorate
BONUS ARMY
• A 1932 incident further damaged Hoover’s image • Known as the Bonus
Army: 15,000 World
War I vets and their families arrived in
Washington to support a proposed bill
BONUS
ARMY
• The Patman Bill would have authorized
Congress to pay a bonus to WWI vets immediately • The bonus was scheduled to be paid in 1945 --- The Army vets wanted it NOW
