Hoover's Response to the Great Depression

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Presentation transcript:

Hoover's Response to the Great Depression

I. Hoover – the man strong belief in the power of the individual successful businessman, well-respected, well-known humanitarian – believed in helping others believed in small government

President Herbert Hoover, 1928: When the war closed… [we] were challenged with a peace-time choice between the American system of rugged individualism and a European philosophy… of paternalism and state socialism…

By adherence to the principles of decentralized self-government, ordered liberty, equal opportunity, and freedom to the individual, our American experiment in human welfare has yielded a degree of well-being unparalleled in the world. It has come nearer to the abolition of poverty, to the abolition of fear of want, than humanity has ever reached before…

II. Conservative / Status Quo rugged individualism 1. “people can succeed through their own efforts” B. laissez faire , but not a “do nothing” 1. felt govt. could solve economic problem in a limited role C. believed in the business cycle

Soon realized that doing nothing was NOT a policy at all… “Hoover Blankets” “Hoover Flags” “Hoovervilles”

III. Reliance on ‘volunteerism’ ‘Encouraged’, but didn’t legislate asked business and labor to work together toward common goals asked Congress to reduce taxes, lower interest rates, & create public works projects asked wealthy to give more $ to charity

IV. Hoover’s Programs “Give a Job” campaign 1. businesses should create jobs B. 1930 ~ Democrats win majority in Congress put money in at business level Reconstruction Finance Corp. – 1.5 million to banks, RRs, etc…

Trickle Down Theory ~ Andrew Mellon $ from the government Trickle Down Theory ~ Andrew Mellon Businesses More Jobs Wages = $$$ Unemployed

V. Hoover = symbol of failure Rise of socialist & communist parties in U.S. 1. some blamed capitalism and democracy for the Depression 2. but… calls for revolution could NOT compete with the American dream

VI. Bonus Army - Summer 1932 Hoover vetoed a bill passed in Congress to grant the bonuses asked Army to disperse the veterans public outraged at use of force hopes of reelection are dashed