1. The Government’s Response to the Great Depression
President: Hoover
Term:

2. President Hoover’s Beliefs
“Rugged Individualism” in America would get the economy moving again
The government should give NO DIRECT AID
He persuaded bankers and businessmen to voluntarily cooperate
No wage cuts
Investment
DOES NOT SOLVE PROBLEMS!

3. Public Works Projects & Deficit Spending
Public works projects: Government funded building projects
Did not create enough jobs
Hoover fearful of deficit spending
Government borrows money to run programs
Did not want government to go into debt to pay for projects
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4. Reconstruction Finance Corporation (RFC)
Hoover’s one attempt to openly combat Depression
Made loans to businesses (banks, RRs, etc)
Hoped it would create jobs
NO DIRECT RELIEF/AID to the people

5. Bonus Army March
WW I veterans march on Washington D.C. demanding veterans bonus
They set up Hoovervilles in D.C. with 15,000 men
Government sends in military to break it up
Destroyed Hoover’s reputation

6. By November 1932 (election) the economy had collapsed