Hoover and the Depression

Hoover’s philosophy Gov’t should encourage cooperation –But not demand or force it People should rely on themselves –Not the gov’t –“rugged individualism” Opposed to welfare or relief –Handouts make people weak

Reluctance to act Asked employers to avoid layoffs Asked labor to avoid asking for pay hikes Used gov’t to coordinate relief efforts –But not to pay for them Has almost no effect on the economy

Boulder Dam Hoover called for dam in Nevada –Generate electricity –Control flow of Colorado River Leads to California’s agricultural explosion Makes Las Vegas growth possible Now known as…

Hoover Dam

Hoover Flags Hoover Blankets

Hoover Responds Pushes for cooperatives –Agreements among companies –Loans from big banks to small banks Fed Home Loan Bank Act –Lowered mortgage rates –Help to avoid foreclosure Reconstruction Finance Corporation –2 Billion dollars for banks and large business

“Trickle down approach” –By helping large companies, money would trickle down to average citizens through job growth and higher wages. –Critics argued the program would benefit only corporations and the poor still needed direct relief.

The Bonus Army

Fight with the Bonus Army Bill was passed to pay WWI Vets a bonus –Passed in 1924 –To be paid in 1945 Cong. Patman wanted bonus paid now –Hoover disagreed –Bill to pay them is voted down in Senate Vets march on Capitol Hill –2,000 refuse to leave

Hoover disbands Bonus Army Sends 1,000 troops to remove vets Infantry gasses the veterans –Baby dies, child blinded Hoover more unpopular –His presidency is doomed