President Hoover”s Response

Volunteerism Hoover asked: –Business leaders to keep employment, wages, & prices –Government to reduce taxes, lower interest rates, create public works –Wealthy to give to charities –To encourage production and consumption –Failed: businesses lay off-government has no money

The Economy Reconstruction Finance Corporation 1932 –Trickle-down economics Government loans money to banks, railroads, & agriculture banks loan to businesses businesses hire employees employees buy goods jobs to produce goods –Businesses didn't use money to hire employees

Boulder or Hoover Dam –On the Colorado River Provide electricity Flood control Water supply of CA's agriculture

Bonus Marchers WWI soldiers promised $1,000 bonus by congress to be paid in 1945 Congress agreed pay out bonuses-Hoover vetoed the bill May 1932 hundreds march from OR to DC Others joined along the way –Wear tattered army clothes –Sing war songs –Ride rails –15,000 Conjugate in DC in Hoovervilles Hoover called in Army chief of staff (MacArthur) to remove Bonus Army Cavalry troops, infantry, bayonets, tear gas, and tanks –Hoover didn't call for such force –But ruined any chance for reelection

Shacks, put up by the Bonus Army on the Anacostia flats, Washington, D.C., burning after the battle with the military. The Capitol in the background