Hoover’s Response to the Great Depression

Herbert Hoover’s Biography Supported Laissez Faire government Supported Laissez Faire government Very Intelligent – graduated from Stanford, president of Cornell University Very Intelligent – graduated from Stanford, president of Cornell University In WW1, organized food drive for starving civilians in Belgium In WW1, organized food drive for starving civilians in Belgium After the war organized a Relief for many European countries to help stabilize some of the economies After the war organized a Relief for many European countries to help stabilize some of the economies Great Humanitarian Great Humanitarian Didn’t take a Pay Check Didn’t take a Pay Check

First Year of Presidency Inaugurated March, 1929 Inaugurated March, 1929 Economy was booming! Economy was booming! Stock Market Crash, October 29th, 1929 Stock Market Crash, October 29th, 1929 Common Perception  Economy was fine until Hoover came in Common Perception  Economy was fine until Hoover came in

4 Problems with Hoover 1. Once economy collapses, Hoover gets the blame. 2. Hoover is a millionaire – resented by suffering people for that 3. The Problems during the Great Depression are so bad. 4. His policies during his presidency are ineffective

Worst Phase – Hit farmers hard (huge surplus of food) Hit farmers hard (huge surplus of food) Farmer Revolts, Bonus Army Farmer Revolts, Bonus Army Bank Failures Bank Failures Unemployment – reaches as high as % Unemployment – reaches as high as % Foreclosure/Evictions Foreclosure/Evictions

HOOVER’s Policies in the GREAT DEPRESSION

Man on the Spot: HOOVER We will now Discuss Hoover’s Response to the Great Depression We will now Discuss Hoover’s Response to the Great Depression We will analyze and discuss each of his Responses to the Great Depression We will analyze and discuss each of his Responses to the Great Depression

1. Smoot-Hawley Tariff Extremely High Tariff Extremely High Tariff Hoover wanted to raise tariff higher to protect US goods Hoover wanted to raise tariff higher to protect US goodsAnalyzeOutcome: 1. Raises the cost of goods 2. The tariff was one of the Causes of the Depression!

2. Presidential Optimism Hoover gave speeches in which he said this is a temporary problem and encouraged people to be positive thinkers Hoover gave speeches in which he said this is a temporary problem and encouraged people to be positive thinkersAnalyzeOutcome: 1. Not really solving anything, could be thought of as a liar if things don’t work out. 2. Angered People b/c he is a millionaire! - Cardboard box homes  Hoovervilles - Newspaper blankets  Hoover Blanket - Pant Pocket turned out  Hoover Flag

3. Taxes Belief was if he Cut taxes  people will have more $ to spend Belief was if he Cut taxes  people will have more $ to spendAnalyzeOutcome: 1. People have no money to begin with to be taxed, so less taxes does not matter 2. LESS GOVERNMENT SPENDING!!! 3. People may hoard $, not spend it 3. People may hoard $, not spend it

4. Plead with Big Business Hoover begged Employers to not lay-off workers, to rehire, and open up factories (“voluntary cooperation”). Hoover begged Employers to not lay-off workers, to rehire, and open up factories (“voluntary cooperation”).AnalyzeOutcome: - Businesses can’t sell  can’t pay employees  can’t rehire b/c there is no work to be done

5. State and Local Government Should Get Involved State and Local Government should find solutions, help people in a rough state State and Local Government should find solutions, help people in a rough stateAnalyzeOutcome: - Federal Government maintains this is not part of its responsibility - States and local gov. have No Money to use b/c Hoover cut taxes

6. Charity Does not believe direct relief is a good idea. He holds fast to his ideal of “rugged individualism”. Does not believe direct relief is a good idea. He holds fast to his ideal of “rugged individualism”. Ask Americans to be Charitable Ask Americans to be Charitable Give $ to charity, loan to neighbors, invite troubled neighbors to dinner Give $ to charity, loan to neighbors, invite troubled neighbors to dinnerAnalyzeOutcome: - This is only a Temporary Solution - Gap between wealthy and poor is so big, wealthy could not give enough to help!

7. Reconstruction Finance Corporation (R.F.C.) Program established in 1932 that gave Fed government loans to banks and businesses to help them “re-adjust”. Program established in 1932 that gave Fed government loans to banks and businesses to help them “re-adjust”.Analyze Outcome: Good idea, but waits too long and does not go far enough in Federal Aid. Also, helps big business and not the average American.

Election of 1932 Hoover (R) vs. Franklin D. Roosevelt (D) Hoover (R) vs. Franklin D. Roosevelt (D) In the end, Hoover had the impossible task of defending failed policies and strategies. In the end, Hoover had the impossible task of defending failed policies and strategies. Instead of campaigning, Hoover spent time begging Roosevelt to not do anything too radical. Instead of campaigning, Hoover spent time begging Roosevelt to not do anything too radical. Hoover was afraid FDR would undo the nation’s chance for recovery if he was too radical. Hoover was afraid FDR would undo the nation’s chance for recovery if he was too radical.

Election of 1932 Election of 1932 Candidates Party Electoral Vote Popular Vote FDRDemocratic47222,821,857 Herbert C. Hoover Republican5915,761,845 Norman M. Thomas Socialist0881,951 William Z. FosterCommunist0102,785