H OOVER ’ S R ESPONSE F AILS 21.3

O BJECTIVES Discuss how Hoover’s initial conservative response to the depression failed. Explain the changes in the President’s policies as the crisis continued. Describe how Americans reacted to Hoover’s relief programs.

K EY P ARTS Cautious Response to Depression Fails Hoover Adopts More Activist Policies Americans Protest Hoover's Failures

I NTRODUCTION Read Section 21.3 Answer critical thinking questions 4&5

H OOVER ’ S R ESPONSE F AILS From big cities to small towns, the Great Depression spread misery far and wide across America. America looked to Herbert Hoover their President to fix the problem. Hoover was a very intelligent business man and he worked long hours and consulted with many different advisors to come up with a plan.

C ONT. Hoover knew that economic ups and down’s were inevitable but this was different and he knew it. His plan was to work with business leaders and industrialist to maintain their wages and work hours as they are and the government would lower taxes and interest rates. Also he called congress to begin public work programs. This plan was basically volunteerism.

C ONT.. The plan was soon in its process but the problem was that it relied on men to put their own interests aside and look to the good of the country. Businesses continued to lay people off and cut wages. Farmers continued to harvest to many crops. The situation called fro decisive federal action.

H OOVER A DOPTS M ORE A CTIVIST P OLICIES Everyone began associating Hoover’s name with the situation they were in, blaming him for their troubles. Hoover got congress to pass the Reconstruction Finance Corporation. This gave more than a billion dollars of government loans to railroads and large businesses.

C ONT. The act also lent money to banks to extend more loans. This theory was known as trickle-down economics, money that was poured into the top of the economic pyramid will trickle down to the base. However, businessmen and bankers did not use the money appropriately and hoarded the money.

C ONT.. Despite the failings of the RFC, Hoover succeeded with one project that made a difference and is even still used today. The creation of the Boulder Dam, the construction brought much needed employment to the Southwest in the 1930s. The Boulder Dam was later renamed the Hoover Dam. It is responsible for powering a large portion of California, Arizona, and Nevada.

C ONT … The Hoover Dam is a hydroelectric dam, meaning it uses the release of water to spin a generator that turns out electricity that is used to power cities. Hoover Dam is responisble for powering over 1 million peoples homes and businesses. Also the Hoover Dam is a critical piece in the irrigation of many southwestern farms.

A MERICANS P ROTEST H OOVER ’ S F AILURES From the Oval Office, Hoover worked hard to end the depression but ultimately was not able to do so, however it was not a lack of effort. Some Americans thought a different type of government was needed, socialism, or communism. However it didn’t take long for them to realize that there was nothing to gain going that direction.

C ONT. Some veterans became frustrated as well, they were promised a bonus after WW1 for their hard times in battle. The payment was supposed to be made in 1945, however, due to the economic downfall many needed it now due to all of the job loss and fear of government collapse. Congress passed the early payment, but Hoover vetoed it saying they didn’t need the early payment. This frustrated many vets.

C ONT.. The veterans marched on Washington in the summer of 1932, twenty thousand of them summoned on the capital. They set up camps and occupied empty government buildings. Hoover called General MacArthur and his troops to move the marchers out without delay.

C ONT … McArthur was aided by Dwight Eisenhower and George Patton. They ordered their troops to fix bayonets and ready tear gas. Patton had his men brandish their sabers in a show of force. A riot broke out and several veterans were injured, and all were driven out of the city with no payment.