The Government’s Response to the Great Depression

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Presentation transcript:

The Government’s Response to the Great Depression President: Hoover Term: 1929-1933

President Hoover’s Beliefs “Rugged Individualism” in America would get the economy moving again The government should give NO DIRECT AID He persuaded bankers and businessmen to voluntarily cooperate No wage cuts Investment DOES NOT SOLVE PROBLEMS!

Public Works Projects & Deficit Spending Public works projects: Government funded building projects Did not create enough jobs Hoover fearful of deficit spending Government borrows money to run programs Did not want government to go into debt to pay for projects https://www.youtube.com/watch?v=xa6L9tPl_-I Show from 6-19

Reconstruction Finance Corporation (RFC) Hoover’s one attempt to openly combat Depression Made loans to businesses (banks, RRs, etc) Hoped it would create jobs NO DIRECT RELIEF/AID to the people

Bonus Army March WW I veterans march on Washington D.C. demanding veterans bonus They set up Hoovervilles in D.C. with 15,000 men Government sends in military to break it up Destroyed Hoover’s reputation https://www.youtube.com/watch?v=dWvCCxOUsM8

By November 1932 (election) the economy had collapsed