12.3 Hoover’s Response Fails

Objectives Discuss how Hoover’s initial conservative response to the Great Depression failed Explain the changes in the President’s policies as the crisis continued Describe how Americans reacted to Hoover’s relief programs

President Hoover Believed Americans need to be optimistic Troubles of the depression would pass soon Rejected the idea of direct gov. aid Rugged Individualism: belief that success comes through individual effort and private enterprise Volunteerism: Charities can help, not the federal gov. FAIL! Relied too much on voluntary cooperation

Hoover’s Cabinet Proposed a laissez-faire approach to economy Sec. of the Treasury, Andrew Mellon urged this approach Trickle-Down Economics Money poured into the top of the economic pyramid will trickle down to the base BUT! Money did not reach the people who needed it the most Reconstruction Finance Corporation (RFC)

Congress and State Governments Funded several public-works programs $800 million was spent on these programs $800 public buildings, 37,000 miles of highways Hoover Dam

Bonus Army WWI vets were promised a bonus in 1945 for serving in the war– wanted it early Congress agreed but Hoover vetoed 20,000 vets arrived in D.C. to protest General MacArthur called in to end protests Used tear gas and bayonets