 Big Win  Promised continued prosperity  Popular with both parties  Weakness----  Timing!!!!! (Crash of ‘29)

 Personal Attitude toward Depression and Individual self-Reliance  Accepted traditional, conservative approach  Optimistic- “Recovery will occur naturally”  Believed the economy is self-regulating  Avoid Federal government interference in the economy  Industry knows best how to stimulate recovery

 Preached “Rugged Individualism”- people should not expect gov’t help  Opposed direct relief or “Public Assistance”  Make sacrifices; led the way w/20% cut of his own salary  Urged state and local governments to provide relief  Depressions are a local problem

 Federal Gov’t must maintain a balanced budget; no deficit spending  Criticism mounted --  poor P.R., “ Hoover prefixes (ex. “Hoovervilles”)

 Depression Actions/ Policies (aimed at “priming the economic pump”)  Federal Farm Board- Farm cooperatives would voluntarily  Coordinate crop production (region by region)  Withhold crops from market until prices rose

 Cut Federal income tax; however it made little difference because:  Taxes were already so low (average family saved $3.75 per year)  The wealthy saved their tax cut; frightened of the future

 signed the Hawley – Smoot Tariff Act into law  Raised protective tariffs to their highest level ever  Goal: to protect farmers & manufactures  Result; A trade war; worldwide trade declined by 40% (backfired)

 RFC (Reconstruction Finance Corporation)  Granted $2 B in loans to save big business, banks, & railroads  Attempt at “trickle Down” theory of indirect relief  Summary: too little, too late  Fact: unemployment in 29= 2 million, 1932=12 million

 Bonus Army ( WWI Vets) marched to Washington D.C.  Hoover hid in the White House, destroyed his chances of reelection

 Lost election of 1932 by a landslide to FDR

 Hoover is often blamed for the Depression (unfair)?  Fact : did more than any president before him had done during a depression.