The Great Depression Begins Chapter 14 Section 1 – The Nation’s Sick Economy Section 2 – Hardship and Suffering During the Depression Section 3 – Hoover Struggles with the Depression

Hoover Struggles with the Depression Section 3 Hoover’s Philosophy –Laissez-Faire (Government should NOT interfere with the economy) –Rugged Individualism –Thought we should let the Depression run its course. It will make the nation stronger. (Andrew Mellon – Sec. of the Treasury –Refusal to offer Direct Federal Relief –Government should play a LIMITED Role in the economy Video on

Hoover’s LIMITED Program Met with Business, Banking, and Labor leaders to encourage cooperation and to encourage them to not make things worse. –Business NOT to cut wages or lay off workers –Labor NOT demand pay increases or go on strike Tried to revise Hawley-Smoot Tariff to reduce tariffs Reconstruction Finance Corporation Federal Home Loan Bank Act Construction of the Boulder Dam (Hoover Dam)

Reconstruction Finance Corporation Authorized $2 Billion for emergency financing for banks, life insurance companies, railroads, and other big businesses. Trickle Down Theory – money would trickle down to the little guy through job growth and higher wages. Critics argue it only helps the corporations and rich people Did not stop the business failures

Federal Home Loan Bank Act Lowered mortgage rates for homeowners Allowed farmers to refinance their farms and avoid foreclosure Stimulate home building Increase Employment Increase Ownership

Boulder Dam World’s Tallest dam and Second Largest Financed by the sell of Electricity Environmental Benefits –Hydroelectricity –Flood Control –Regular Water Supply Growth of California Agricultural Economy (Irrigation) –Lake Mead Help for the Depression –Provides Jobs

Democrats Win in 1930 Congressional Elections Democrats use anti-Hoover and Republican feelings to gain control of the House of Reps and come within one member in the Senate Anti-Hoover Sentiment also illustrated in American Culture –“Hoovervilles” = shantytowns –“Hoover Blankets” = newspapers that homeless people use to keep warm –“Hoover Flags” = turned out empty pockets –“Hoover Tourist” = Hobos

Farmers Revolt Farmers burned their crops rather than sell them at a loss. Farmers dumped milk on highways for the same reason. Farmers declared a “farm holiday” and refused to work. Farmers blocked road to prevent food from getting to market with the idea it would create a shortage and increase prices. Farmers used force to prevent foreclosures.

Bonus Expeditionary Force and the Bonus March 1924 Adjusted Compensation Act – veterans were to receive bonus for their participation in WW I in 20 years or in the event of their death. Cash Value in 1945 would be around $1000. Patman Bill – Wright Patman, Congressman from Texas, thought the bonuses should be paid immediately. Bonus Expeditionary Force – 10,000 to 20,000 WW I veterans and their families traveled to Washington D.C. in the summer of 1932 to request their bonuses early as outlined in the PatmanBill. Walter Waters - spokesperson for the Bonus Marchers Many Bonus Marchers lived in Shantytowns in and around the Capitol.

Hoover Administration Doesn’t Support Bonus Army Demands Unbalance the budget Could cause inflation Compromise economic stability Wasn’t fair to single out a particular group for aide

House and Senate Vote House votes to pay the bonuses early Senate Vote –Marchers wait patiently on the steps of the Senate –Walter Waters called in –Senate rejects Bill –Men sing “America” and march away Bonus Marchers on the Capitol Steps

Gassing the Bonus Army Many veteran stay in D.C. after the vote because they can’t afford to go home. Hoover seeks funds to send them home but is denied Late July, Police try to move homeless vets from an abandoned building, but they resist and a riot breaks out and 2 vets are killed Army and Police are called in to clear Anacostia Flats of the Veterans Troops prepare to evacuate the Bonus Army July 28, 1932 See

Gassing the Bonus Army Hoover orders the Army NOT to attack the Veterans Force led by General Douglas MacArthur moves in and attacks the veterans with gas and sword drawn. The burn the shantytown and drive vets and their families out. Major D. D. Eisenhower and George S. Patton, Jr. among solders involved. Tanks and cavalry prepare to evacuate the Bonus Army July 28,

Aftermath A few died Many people injured 135 were arrested Public opinion turned even more against Hoover and almost guaranteed a Democratic victory in 1932 Aftermath - with the Capitol in the background, the shacks of the Bonus Army are burned. July 29,

Positive or Negative?

Positive or Negative?

McCain compared to Hoover