1. Hoover’s Failed Policies
Module 9 (lesson 3)
Hoover’s Failed Policies

2. Hoover tries to reassure the nation

3. America’s response right after the crash
Most felt that this was a normal part of the business cycle where periods of rapid economic growth (as witnessed during the mid-1920’s) were naturally followed by periods of depression
The best course of action was to do nothing & let the economy fix itself
President Hoover took a slightly different approach & called for gov’t. to take a very limited role

5. Hoover’s philosophy
Aside from his belief in rugged individualism, Hoover wanted to foster cooperation between competing groups in society (labor & management)
He still opposed direct relief to the poor because it would weaken their self respect, erode their moral fiber, & create a very expensive federal bureaucracy that would kill individual liberties
He felt individuals, charities, & local organizations should help the needy

7. Hoover takes cautious steps
Taking a cautious approach, Hoover called together key business, banking, & labor leaders urging them to work together to find solutions (asked employers not to cut wages or lay off workers; asked labor leaders not to demand higher wages or go on strike)
This didn’t work!
Things got worse…much worse!!

9. Boulder dam (Hoover Dam)
Hoover began this project in the 1920s when he was Secretary of Commerce.
This federal gov’t. project would build a huge dam along the Colorado River that would provide electricity and water to millions of people in the region (not to mention the 1000s of men hired to build it)
Check out these 2 videos!

11. Democrats win 1930 congressional elections
Democrats took advantage of this situation to take control over the House of Reps & dwindle the Republican control over the Senate to just 1 seat in the 1930 congressional elections
Farmers went ballistic destroying crops, dumping milk on the highways & declaring a farm holiday
Hoover’s name was negatively attached to many things in society (Hoovervilles; newspapers – Hoover blankets; pockets turned inside out – Hoover flags)

13. Hoover takes action

14. Hoover backs cooperatives
Reflecting his belief in small gov’t., Hoover tried to negotiate agreements among private entities
He backed the creation of the Federal Farm Board (org. of farm cooperatives intending to raise crop prices by helping members buy crops & keep them off the market until prices rose)
He persuaded the nation’s largest banks to create the National Credit Corporation (loaned $ to smaller banks to help them avoid bankruptcy)

16. Direct intervention (w/business)
By the end of 1931, nothing was working
Hoover got Congress to pass series of measures to reform banking, provide mortgage relief, & funnel federal $ into business investment (still no direct relief to the people)
Federal Home Loan Bank Act (1932) – lowered mortgage rates for homeowners & allowed farmers to refinance their farm loans to avoid foreclosure
Reconstruction Finance Corporation (1932) – authorized $2 billion for emergency financing for banks, life insurance companies, railroads, & other companies which would hopefully trickle down to the average American worker/employee (keep businesses & workers afloat)

18. The bonus army incident

19. Bonus army
In 1932, between ,000 WWI vets & their families went to D.C. calling themselves the Bonus Expeditionary Force (Bonus Army)
Back in 1924, Congress had approved of a bonus ($500/soldier) to be paid out to all WWI vets in in the form of cash & a life insurance policy
In 1932, Congress voted down the Patman Bill which would make that $ available immediately & Hoover ordered the Bonus Army to disband.

21. Hoover disbands the bonus army
Most of the Bonus Army disbanded (2000 stayed)
On July 28th, 1932, Hoover sent in 1000 soldiers led by Gen. MacArthur & Major Eisenhower to forcefully remove those who remained
It was a very violent & embarrassing moment as our gov’t. used the army to remove army vets (tear gas; looting, fires, 2 people were shot & many injured)
This put the finishing touches on Hoover’s presidency with the November presidential election looming & a strong Democratic opponent named Franklin Delano Roosevelt waiting in the wings

24. Module 9 (Lesson 3) Enrichment activity (7pts.)
Complete one of the following…
1.) Hoover’s Statement on Relief Enrichment Activity
2.) The Depression & Migration Enrichment Activity