Hoover Struggles with the Depression

Hoover Struggles with the Depression Believed that government’s chief functions was to foster cooperation between competing groups and interests in society. Business and labor in conflict, govt step in “Rugged Individualism” – the idea that people should succeed through their own efforts Hoover opposed any form of federal welfare Believed handouts would weaken people’s self-respect and ”moral fiber” Attempted to call together business, banking, and labor leaders to work together and fix the economy.

Boulder Dam Boulder Dam (Hoover Dam) Financed by the sales of the electricity the dam would produce Agreements on water rights among seven states in the Colorado Riven basin $700 Million public works program Provided: Flood control Regular water supply Agricultural growth of California

Nation Suffers Democrats win majority in House of Representatives Frustrated American Farmers: mad about low crop prices burned their corn and wheat and dumped the milk on highways “farm holiday” – refused to work Blocked roads to prevent food from getting to markets “Hoovervilles” – Shantytowns in American cities Hoover blankets – newspapers Hoover flags – empty pockets turned inside out Saw him as a cold heartless leader

Hoover Takes Action Backs cooperatives Direct intervention Federal Home Loan Bank Act: lowered mortgage rates and allowed farmers to refinance their farms Reconstruction Finance Corporation: $2 billion for emergency financing for banks, life insurance companies, railroads, large businesses

Gassing the Bonus Army 10,000-20,000 WWI veterans and their families arrived in Washington D.C. to support the Patman Bill, which authorized the government to pay a bonus to WWI veterans who had not been compensated adequately. The bill was shot down but 2,000 veterans remained 1,000 soldiers removed the veterans using bayonets, tear gas, and fire. Americans were outraged at the treatment of the veterans

Letters to Hoover You will be writing a brief letter to President Hoover explaining your concern over economic issues in 1932. Your letter should focus on reasons why he needs to take action in dealing with the economic crisis. Proper letter and grammar format, this is going to the president. We will share letters tomorrow. What would you write to current presidential candidates?