Hoover’s Great Depression

I.President Herbert Hoover A. Republican Herbert Hoover won the election of 1928 at a time of great economic prosperity B. Unfortunately for Hoover, only months after he took office, the Great Depression began C. Hoover believed in laissez- faire, which meant that the government should not interfere with the economy

President Herbert Hoover (cont.) D. Instead, Hoover encouraged people to get help from private organizations 1. Religious groups 2. Soup kitchens  a place where you could get a free meal Was Hoover wrong for not trying to do more to end the Great Depression?

President Herbert Hoover (cont.) E. Unemployment 1. An unemployed person is someone who is looking for a job and cannot find one 2. By 1933, 25% of workers are unemployed  almost 13 million Americans How do you think the Great Depression may have affected people who did not lose their jobs?

II.Too little, too late A. Hoover, finally decided he had to do something B. He took two significant steps to try and help the people by creating: 1. Public Works Programs  programs where the government paid people to build schools, pave roads, and construct dams 2. Reconstruction Finance Corporation  government gave loans to companies so they could stay in business

Too little, too late (cont.) C. People blamed Hoover and created nicknames about their situation 1. Hoovervilles  shacks where the homeless lived 2. Hooverblankets  newspapers used to keep warm 3. Hooverflags  inside-out pockets showing no money

Too little, too late (cont.) D. Bonus Army 1. In 1932, WWI veterans marched to Washington D.C. and demanded bonus pay that was not due to them until Hoover sent the army – using tanks, machine guns, and tear gas – to force the veterans out of the capital Was the Great Depression Herbert Hoover’s fault?

Great Depression Cycle of Disaster 1. People do not invest any more money 2. Businesses need to save money 3. Workers are fired 4. Demand for goods falls because more people are unemployed 5. Companies go out of business 6. More workers become unemployed REPEAT STEPS ABOVE REPEAT STEPS ABOVE