Hoover’s Response to the Great Depression

Herbert Hoover’s Biography Supported Laissez Faire government Very Intelligent – graduated from Stanford, president of Cornell University 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 Great Humanitarian Didn’t take a Pay Check

First Year of Presidency Inaugurated March, 1929 Economy was booming! Stock Market Crash, October 29th, 1929 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 – 1930-1933 Hit farmers hard (huge surplus of food) Farmer Revolts, Bonus Army Bank Failures Unemployment – reaches as high as 25-30% 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 Analyze each of his Responses to the Great Depression using the sheet that you picked up at the Beginning of Class

1. Smoot Hawley Tariff Extremely High Tariff Hoover waned to raise tariff higher to protect US goods Analyze Outcome: 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 Analyze Outcome: 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 Analyze Outcome: 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

4. Plead with Big Business Hoover begged Employers to rehire, open up factories Analyze Outcome: - 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 Analyze Outcome: - Federal Government maintains it is not part of its responsibility - No Money to use b/c Hoover cut taxes

6. Charity Ask Americans to be Charitable Give $ to charity, loan to neighbors, invite troubled neighbors to dinner Analyze Outcome: - 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 business to help them re-adjust Analyze Outcome: Good idea, but waits to long and does not go far enough in Federal Aid

Election of 1932 Hoover (R) vs. Franklin D. Roosevelt (D) 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. 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 FDR Democratic 472 22,821,857 Herbert C. Hoover Republican 59 15,761,845 Norman M. Thomas Socialist 881,951 William Z. Foster Communist 102,785