1. 33. Politics of Boom and Bust
Pt 2:

2. President Herbert Hoover
“Hoo but Hoover?”
Catholic, urban NY Gov. Al Smith nominted by Dems
Radio?
Hoover the perfect candidate, poor, orphan, Stanford, mining engineer, small town, philanthropist
Hoover in a landslide, even in the South

3. Hoover as President People should take care of themselves
Hard hit farmers offered Agricultural Marketing Act—coops, and Farm Board—loans and surplus buying
Farmers just producing too much
Hawley-Smoot Tariff raised tariffs even more, foreign govts react against American farms
More and more isolationistic nations

4. Crash! Speculative bubble crating inflated “paper” profits
British increase interest rates
One scare encourages more to sell, encouraging more to sell… no buyers, prices tank
“Black Tuesday” in October
Industry failure means layoffs

5. Unemployment causes unemployment!
People lose their jobs
People have less money to spend
People buy fewer things

7. Why the Depression Overproduction in farm and factory
Money in hands of only wealthy
Overexpansion of credit
Economic problems in Europe
Drought

9. End for Hoover Did try some programs
Received little support from Democratic Congress
Looks even worse when he has to throw out the “Bonus Army” (vets looking for their bonuses taking over Wash DC

10. Hoover catch all
Hoover blankets, Hoover flag, Hoover meal, Hooverville
Tried Reconstruction Finance Corporation to bring in money for companies—trickle down economics (prime the pump)
“Millionaires dole?”
Did go for some public works projects—Hoover Dam $2.25 billion

12. Foreign concerns Japan took Manchuria
No real response from US, not a member of L of Nations, Stimson Doctrine said we wouldn’t recognize new possessions as Japanese
Japanese go on to bomb Shanghai
“Good Neighbor” policy, says less aggression to Latin America