Hoover’s Handling of the Hardship How does Hoover’s policies worsen the depression?

Hawley-Smoot Tariff Act goal: help businesses & farmers  Congress raises tariffs, despite economists saying not to  Hoover signs it result: Europe can’t afford Am products  worldwide trade drops 40%  depression worsens

Hoover’s Response “rugged individualism”  people should pick themselves up economic downturn part of business cycle - businesses will fix the problem, not the gov’t Pres. job is to not overspend in time of crisis - charities should voluntarily help the needy

Hoover to Business: We Need Help Hoover works w/ leaders of business, banking, & labor asking: 1) employers, please don’t cut wages or lay off workers 2) bankers, please help charities generate money 3) unions, please do not go on strike, business hurting too

Hoover takes some action 1931: since business isn’t creating jobs, Hoover authorizes gov’t funded construction of Boulder Dam (renamed Hoover Dam) - provide electricity, water supply, & flood control, but most importantly construction jobs (temporary relief)

More Government action 1. Fed. Farm Board (1930) - Govt & private cooperative trying to raise crop prices 2. National Credit Corporation (1931) - Gov to organize loans to smaller banks to prevent failures 3. Federal Home Loan Bank Act (1932) Allowed people to refinance mortgages at lower rates 4. Reconstruction Finance Corporation (1932) Additional $2 billion for emergency financing for larger banks & insurance companies Although these actions helped it was too little, too late

Hoover vs. WWI Bonus Army 1932: Bonus Army (WWI Vets), want their bonuses now!! (approved 1924, vetoed by Coolidge) Patman Bill would give bonuses immediately but Congress votes it down  bonuses to be paid in 1940s Bonus March begins, people encamped in Washington, Hoover sends in Gen. MacArthur to remove Bonus Army 1K tear gassed, encampment burned, 3 killed several blinded