1. Hoover’s Response Fails
11.5.1,
EQ: Why did Herbert Hoover’s policies fail to solve the country’s economic crisis?

2. Hoover’s Response to the Depression
1. Rugged Individualism
he didn’t believe he legally could give direct aid
it’s not in the Constitution
gave money to local and state governments and businesses instead
Hoover encouraged businesses to voluntarily help
he cut income tax on the wealthiest from 74% to 23%
businesses cut wages and fired more workers
he tried to get local communities and the states to fix the depression

3. Hoover’s Response to the Depression
Reconstruction Finance Corporation (RFC), 1932
Hoover loaned billions to private businesses to jump start the economy
banks, railroads, insurance companies, and local governments
from 1932 – 1941 the RFC loaned $9.5 billion
FDR continued this program
it was too late, voters dumped Hoover for FDR in 1932

4. Hoover’s Dam (or should it be Dam Hoover?)
Hoover Dam, 1931 – 1935
Hoover set aside $49 million to build a dam to provide irrigation and electricity
Hoover supported jobs for the unemployed so they wouldn’t sacrifice their dignity
FDR called it the Boulder Dam so it wouldn’t have Hoover’s name
the “trickle-down theory”
allspark

5. Hoover’s Response to the Depression
Bonus Army, 1932
Large assembly of WWI veterans marched on DC to demand the money they’d been promised
the Adjusted Compensation Act was like the GI Bill
Congress refused so they set up Hoovervilles outside the city
Army chased them out and Hoover looked really bad
a baby was killed, the veterans did not get their money
11.6.2

6. Communist / Fascist Solutions
communists argued that the government should seize all property
the government would control all businesses
the depression in the USSR was less severe
fascists wanted a dictator to control every aspect of society

7. Essential Question – 1 paragraph, SUTW
Why did Herbert Hoover’s policies fail to solve the country’s economic crisis?