SWBAT: Explain how Hoover responded to the crisis of the Great Depression Do Now: a) Read the text and examine the political cartoon and answer the discussion questions.

Hoover’s Response to the Great Depression Herbert Hoover comes to office as the first president having to deal with the depression. Hoover takes office in March of 1929 and the Stock Market Crashes in October 1929. Hoover was a successful businessman and self-made millionaire. Hoover had an international reputation as the leader of a successful relief effort to aid starving Europeans and to help Europe recover economically.

Hoover’s Response to the Great Depression Hoover took office with the belief of rugged individualism and that the government should not become involved in the national economy or assist citizens economically. Hoover believed “Prosperity was just around the corner.” Altered his view that the government should not become directly involved in the economy. Trickle Down Theory - He promoted programs that aided businesses, on the theory that as businesses recovered, economic benefits would trickle down to the workers and consumers.

Federal Home Loan Bank Act 1. What was the goal of the Federal Home Loan Bank Act? 2. How did the Federal Home Loan Bank Act initially affect the Great Depression? 3. Was the Federal Home Loan Bank Act a success or failure? Why? 4. Does the Federal Home Loan Bank Act show Hoover taking the necessary steps to help the American public? Why? The intent of this system was to increase the supply of money available to local institutions that made home loans and to serve them as a reserve credit resource. The rate of foreclosures dropped noticeably after the banks began functioning, but the change came too late for thousands of families. Success – significantly reduced the foreclosure rates and also provided new jobs in the home construction industry. Yes – Hoover abandon’s his policy of Rugged Individualism once he realizes that the Depression is worse than anyone could have imagined/believed.

Reconstruction Finance Corporation 1. What was the goal of the Reconstruction Finance Corporation? 2. How did the Reconstruction Finance Corporation initially affect the Great Depression? 3. Was the Reconstruction Finance Corporation a success or failure? Why? 4. Does the Reconstruction Finance Corporation show Hoover taking the necessary steps to help the American public? Why? Hoover believed that the decline of industry and agriculture could be halted, unemployment reversed and purchasing power restored if the government would shore up banks and railroads Despite some initial success, the Reconstruction Finance Corporation never had its intended impact. Failure – never met its intended goals No – Hoover resisted a broad-based expansion of the program, but did allow some loans to state agencies that sponsored employment-generating construction projects.

Hoover Dam 1. Why was the Hoover Dam built? Who would this dam benefit the most? 2. Why was the Hoover Dam’s name changed to the Boulder Dam? 3. How did the Hoover Dam initially affect the Great Depression? 4. Was the Hoover Dam a success or failure? Why? To create a year-round water supply for the most arid region of the Southwestern United States. When Hoover lost the presidency to Franklin D. Roosevelt in 1932 because people blamed him for the Great Depression, the dam was officially renamed Boulder Dam in 1933. Congress restored the name Hoover Dam in 1947. Provided jobs and economic opportunities for many of the unemployed. Success – provided jobs/economic opportunities – also provided a year round water supply for the Southwestern United States

Is Herbert Hoover to blame for the Great Depression? Closing Question Is Herbert Hoover to blame for the Great Depression? Why or Why not?