1. Hoover’s Public Relief and Economic Reform
15.3

2. Hoover’s Philosophy
“ I do not believe that the power and duty of the Government ought to be extended to the relief of individual suffering. The lesson should be constantly enforced that though the people support the Government the Government should not support the people.” –Herbert Hoover

3. Hoover’s Public Relief

4. Opposition of Direct Relief
Hoover rejected direct relief from the federal government for the needy
= no food, shelter, clothing, or money for needy
Instead – Hoover believed private charities best suited for relief
Hoover – hard work was the answer, not handouts

5. Encouraging Voluntarism
Hoover and many others believed voluntary efforts were preferable to government aid
Private charities would not be enough aid

6. Hoover’s Economic Reform

7. Hoover’s Reform Supports – gov. intervention for business
To stimulate economy
Rejects – laissez-Faire approach of hands off proposed by Sec. Of Treasury Andrew Mellon

8. Hoover’s Programs to End Depression

9. White House Conference
= meeting of top business, labor, and political leaders following the market crash
Hoover urged them to maintain pre-depression levels of production, employment, and wages

10. Public Works Programs
Construction programs funded by the government to stimulate business and reduce unemployment
Largest project was the Boulder Dam (Later called the Hoover Dam)
Also built over 800 public buildings and 37,000 miles of roads

12. Federal Farm Board (FFB)
Established to help farmers help themselves
Offered loans and bought crop surpluses when prices were low

13. Reconstruction Finance Corporation (RFC)
Authorized to lend up to $2 bill to stabilize banks & large companies
Purpose = strengthen businesses to prevent more failures and job losses
= no relief to businesses or people
Benefits did not trickle down fast enough to slow depression

14. Hoover’s Failed Policies
Did not work
They were not drastic enough to halt the depression and Hoover continued to take the blame
BUT…The government accepted the idea that it can and should do something to boost the economy in times of crisis