A Tragic Tale of Herbert Hoovers Response to

A Tragic Tale of Herbert Hoover’s Response to the Great Depression

Today’s Objective After today’s lesson, you should be able to… Describe Hoover’s response to the Great Depression Explain why he was ineffective

Hoover’s Beliefs President Hoover viewed Great Depression as natural downturn in economic cycle and anticipated a quick rebound. He believed in “rugged individualism, ” “volunteerism” and “Trickle-Down Economics”. “Rugged Individualism” is the belief that those who work hard will succeed. Because of this belief, Hoover refused to provide direct federal assistance to Americans.

Failure of Volunteerism Using “volunteerism”, Hoover encouraged businesses not to lay off workers, called on wealthy individuals to donate money to charity, and called on local governments to provide jobs and relief. “Volunteerism” failed as businesses cut wages and laid off workers and local governments did not have the resources to provide jobs and relief.

Trickle-Down Actions Hoover then introduced his “Trickle Down” economics plan. He created the Reconstruction Finance Corporation (RFC) to provide government loans to big businesses and banks. The idea was that the government loans to large businesses would help them hire workers and that loans to banks would help them make loans to businesses. This money would “trickle-down” and lead to greater employment ultimately, ending the depression.

Failure of Trickle-Down Economics Most businesses did not use loans to hire workers, most banks did not make loans to businesses but used the money to pay their own debts and unemployment continued to rise. As poverty continued to worsen, Hoover reputation faded and lack of support increased.

Hoover’s Fate is Sealed In 1932, about 40, 000 WW 1 unemployed veterans and their families camped in Washington D. C. in protest when they did not receive a promised bonus. They became known as the “Bonus Army”. Fearing a riot, Hoover used the army to break up the protest, shocking many Americans and further weakening his reputation. He would lose in a landslide election to Franklin D. Roosevelt in 1932.

Americans Shocked!!! Mac. Arthur’s 12 th infantry gassed more than 1, 000 marchers, including an 11 month old baby, who died Two vets were shot and scores injured Americans were outraged and once gain, Hoover’s image suffered

“History Expert” Video Review Click the link below to watch the video review for this lesson. https: //www. youtube. com/watch? v=Kfe. HWna. K 7 r. Y