Hoover and the Great Depression

Hoover’s view. After the Stock Market Crash Hoover did not think there was too much to worry about. Lots of economists agreed with him and believed that this was just a temporary “hiccup” and the markets would soon turn back to normal.

Hoover’s Social Policies Hoover did not support “direct relief,” which is government-funded assistance. He believed that handouts would only weaken our moral resolve to get better, and interfere with our concept of “American Individualism.”

Hoover’s Business Policies He was very much a “laissez-faire” president. He believed that it was government’s job to facilitate disputes, but not force action. For example, he called big business leaders together and told them not to shrink wages or lay people off. Spoiler alert, this doesn’t work.

Hoover’s Reputation As the Depression deepens and continues, many Americans blame Hoover for their plight. Make-shift shantytowns that were created for the thousands of homeless came to be known as “Hoovervilles.” Homeless people used newspapers to keep warm and referred to them as “Hoover Blankets.”

Hoover Gets Government Involved He created the Federal Farm Board. This organization hoped to raise the price of crops by “buying” crops from farmers to keep them off the market, thereby lowering supply which would hopefully raise demand and prices. He created the National Credit Corporation This organization of large banks loaned money to smaller banks so the smaller banks would not go out of business.

More Action He signed the Federal Home Loan Bank Act that lowered mortgage rates for homeowners so that their rent would go down. It also allowed farmers to refinance their loans so they could make lower monthly payments for their farms. He got the Reconstruction Finance Corporation approved by Congress, and this authorized up to 2 billion for emergency financing for banks, life insurance companies, railroads, and other large businesses. In the end, none of these measures really helped the people who needed them the most, and they are remembered as failures.

The Patman Bill and the Bonus Army In 1924 Congress had approved a bonus for WWI veterans that would be paid out in the form of cash and a life insurance policy in 1945. The Patman Bill was a proposal for that 500 bucks to be given out now (1932). 10,000 WWI vets and their families marched to Washington to show their support, and were nicknamed the “Bonus Army.”

Hoover handles the Army He believed that they were communists and agitators, but he allowed them to peacefully assemble. They created a shantytown within sight of the Capital Building. Soon Congress voted down the bill, however, and Hoover asked the Bonus Army to leave. Most did, but 2,000 didn’t.

Hoover sends in the troops. He sent in federal troops to disperse the crowd. The troops were armed with gas masks and tear gas. They forced people to leave at bayonet point, and soon some tear gas cartriges exploded. About 1,000 people were gassed, including an 11th month old baby. This severely hurts Hoover’s image.

Dust Bowl During the 1920’s farmers carved up the Great Plains in attempts to make more money selling more crops. Grass was all dug up and crops were planted. Then came the drought. The soil dried up, and with no grass to keep it down, it easily blew around whenever there was a strong wind.

Dust Storms Wind would pick up dust and blow it hundreds of miles. The region that was hardest hit was Oklahoma, Kansas, Colorado, Texas, and New Mexico. This area became known as the Dust Bowl.

Effects Most people packed up and left, heading to California. They were referred to as “Okies” because everyone assumed they came from Oklahoma. Some were able to find work, but the majority found it just as difficult in California. California even closed its “border” and did not allow migrant workers into the state for a period of time.