Hoover’s Policies 1928 newspaper campaign for Republicans “a chicken in every pot”

Hoover as President Lacked political experience Lacked political experience lacked support from his party (R) lacked support from his party (R) (D) took control of House mid- presidency (D) took control of House mid- presidency

Hawley-Smoot Tariff Raised duty on agricultural materials Raised duty on agricultural materials Highest protective tariff in peacetime! Highest protective tariff in peacetime!

Hawley-Smoot Tariff (1930) Economists urged Hoover not to sign it Economists urged Hoover not to sign it Hoover signed it anyway Hoover signed it anyway 25 nations restricted trade w/ US 25 nations restricted trade w/ US Raised their tariffs as response Raised their tariffs as response Impact on int’l trade  catastrophic Impact on int’l trade  catastrophic

Hoover & the Farmers Income cut by more than half from 1929 to 1932 Income cut by more than half from 1929 to 1932 Farm Board tried buying surpluses, but it didn’t help Farm Board tried buying surpluses, but it didn’t help Farmers were encouraged to plant less Farmers were encouraged to plant less

Boulder Dam Hoover Dam Hoover Dam history.org/boulder_canyon_project.html history.org/boulder_canyon_project.html history.org/boulder_canyon_project.html history.org/boulder_canyon_project.html

Too little, too late Federal Home Loan Bank Act Federal Home Loan Bank Act Spur new home construction Spur new home construction Reduce foreclosures Reduce foreclosures Emergency Relief and Construction Act Emergency Relief and Construction Act Funds for public works progs Funds for public works progs Reconstruction Finance Corp. Reconstruction Finance Corp. made loans to RR, insurance companies, banks, state & local gov’ts made loans to RR, insurance companies, banks, state & local gov’ts

Why not just aid the people? Hoover felt direct aid to the unemployed would… Hoover felt direct aid to the unemployed would… Weaken their self-respect Weaken their self-respect Undercut the efforts of charity Undercut the efforts of charity Destroy responsibility of the unfortunate Destroy responsibility of the unfortunate Hoover relied on volunteerism!!! Hoover relied on volunteerism!!!

The Depression Worsens

Employment Cuts Hours were cut Hours were cut Wages were cut Wages were cut Mood was gloomy Mood was gloomy 1932: 30,000 companies closed 1932: 30,000 companies closed 1931: 800 banks failed 1931: 800 banks failed

Major Mood Change People lost confidence People lost confidence Hesitated to try new things Hesitated to try new things Stock market dropped Stock market dropped

Food was scarce Farmers had more than they could sell Farmers had more than they could sell Food prices dropped Food prices dropped

Effect on Society Business leaders cut wages (against agreements not to) Business leaders cut wages (against agreements not to) Hourly wages in US Steel Company cut up to 60% Hourly wages in US Steel Company cut up to 60%

Effect on Society Avg family income dropped Avg family income dropped 1930: 4 million unemployed 1930: 4 million unemployed 1933: 12 mill unemployed! 1933: 12 mill unemployed! Bank runs Bank runs Breadlines & soup kitchens in cities Breadlines & soup kitchens in cities

Effect on Society Lots of business closed Lots of business closed Families were being evicted Families were being evicted Some lived in “Hoovervilles” Some lived in “Hoovervilles” "Hoover blanket" - old newspaper used as blanketing "Hoover flag" - an empty pocket turned inside out "Hoover leather" - cardboard used to line a shoe "Hoover wagon" - an automobile drawn by horse Homelessness was ubiquitous Homelessness was ubiquitous

The Bonus Army May 1932: 1500 unemployed Army veterans marched on D.C. May 1932: 1500 unemployed Army veterans marched on D.C. Set up Hoovervilles Set up Hoovervilles 20,000 protestors total 20,000 protestors total

The Bonus Army Hoover provided them w/ supplies Hoover provided them w/ supplies Congress rejected demands Congress rejected demands Most left, but 2,000 refused to go Most left, but 2,000 refused to go

The Bonus Army When the police failed to stop it, Hoover called in the army When the police failed to stop it, Hoover called in the army MacArthur burned down the camp MacArthur burned down the camp Many Americans blamed Hoover for everything Many Americans blamed Hoover for everything

Fears of Revolution Riot insurance made available Riot insurance made available Socialists & Communists preached the Depression as the end of capitalism Socialists & Communists preached the Depression as the end of capitalism Fought w/ each other Fought w/ each other Majority of US still wanted capitalism Majority of US still wanted capitalism

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