American History Chapter 21-3 Hoover as President

President Hoover’s Core Beliefs Rugged individualism: Government should not interfere in people’s lives. Associative state: Voluntary partnerships between business groups and government. – Hoover Dam: An example of the associative state at work. U.S. gov’t. & 6 companies worked together to turn the Colorado River into an energy source.

Hoover Dam

Colorado River before the Hoover Dam was built. Hoover Dam generators

Pres. Hoover did not believe in direct aid from the gov’t. – Aided farmers through gov’t. loans to cooperatives. – Cooperatives: Organized farmers into groups that worked to keep costs low and increase crop prices.

Hoover Was Slow to Act Urged businesses to cut wages or lay off workers. – Most did both. Reconstruction Finance Corporation: – Provided $2 billion in loans to financial institutions. Created the Federal Home Loan Bank: – Encourage home building. – Reduce home foreclosures. Smoot-Hawley Tariff: – Raised the cost of imported goods. – Backfired when other nations passed tariffs causing global trade to plummet.

Americans blamed Hoover for lengthening the depression with his unwillingness to help. WWI veterans requested a bonus, promised to be paid to them in 1945, to be paid early. – Hoover refused – concerned about the Fed. Budget. – The veterans organized the Bonus March on Washington, D.C. – Hoover sent in police & federal troops to break up the Bonus Army. Hundreds were injured and 2 veterans died.

Bonus March

Come on, would it kill ya to smile?