1. Hoover and The Depression
Hoover believed in laissez-faire economics.
Hoover: The Government should have a limited role in the crisis- the economy will fix itself.

2. Hoover tries to do something about the Great Depression
Reconstruction Finance Corporation – the government lent money to corporations to get the economy moving again.
The Hawley-Smoot Tariff – protected US businesses; led to a lack of demand for US goods abroad.
Farm Relief Board – attempted to
bring farm prices back up by reducing
supply- economics of scarcity;
destroy crops and livestock, while
people were starving
Conclusion: Hoover can’t be blamed for
the Depression; but he did not do
enough once it started.

3. The End of Hoover’s Political Career
In 1932 The Bonus Army marches on Washington to demand their bonus checks.
The Army is called out to deal with the demonstrators. Tear gas is used on the Veterans- an 11 month old baby dies from the gas. Two veterans are shot; the “Hoovervilles” are burned.

4. The Authentic History Center
The Election of 1932
Hoover (R)
Believed in Rugged Individualism.
Believed in laissez-faire.
Blamed for the Depression and the government’s inability to end the crisis.
To the public, he appeared helpless and without a plan to end the crisis.
FDR (D)
Did not believe in any particular ideology.
Believed that the government should play more of a role in ending the Depression- do something!
Proposed a “New Deal” with the The 3 R’s.
Projected confidence, energy, and optimism.
The Authentic History Center