1. Herbert Hoover: the Vacuum!

2. What could be the problem here?!
Plan #1 for Hoover
At first, Hands-off policy
Depressions are like storms- strong business will survive
No need for Gov’t interference
Realizes this is not a real plan- calls upon volunteerism!
Asks businesses to keep employment, wages, and prices same as before
Gov’t: reduce taxes, lower interest rates, and create public work programs
Wealthy- give your goods to the needy
What could be the problem here?!
Volunteerism failed because businesses and people during this time were not going to act in the best interest of the country as a whole, but in the best interest of the individual.
Business cut wages and laid off workers
Farmers continued to produce as much as they could because it was in the best interest of them and their families

3. Localism Local city and state gov’t are best to solve problems
Hoover resists using Fed. Gov’t Resources- against the Constitution
Favored “rugged Individualism”
What does he mean by this?!

4. Reconstruction Finance Corporation (RFC)
1932
Believed economy lacked credit
Billion+ in $$$ loans to railroads and businesses
Theory of Trickle-Down Economics

5. What is Trickle-Down Economics?
Banks
Businesses/corporations
Employees
Money poured into the top of the economy would “trickle down” to the base ( the common people)
Great Idea right?!?
What could be the problems with this theory?

6. Based on these two cartoons, what do you think the problem was with the “trickle-down” theory?

7. Hoover Dam 1929 Public works job to get people back to work
Located on the Colorado R. near Vegas
Nevada, California, and Arizona all use this dam for power

8. The Bonus Army Read the document
In your journal, identify the following:
Who
When
What
Where
Significance
2 interesting facts
We will have a quiz on the causes of the Great Depression, life during the great depression, and Herbert Hoover on Wednesday/Thursday