Ch 8 3 1 Hoovers Response Fails Why

Ch. 8 -3 -1 Hoover’s Response Fails

Why It Matters n Unemployed and homeless crowded the streets and shantytowns n 1932 Americans turned away from Hoover and his failed tactics n Looked for more government intervention – End of laissez-faire

Cautious Response to Depression Fails n Hoover did not cause depression n Americans looked to Hoover n He failed to find the right formula n Not because of a lack of effort – He was rather intelligent

Hoover Turns to Volunteerism n n n At first, he followed a hands-off approach Viewed upswings and downswings as normal Eventually realized this was not working Asked employers to keep employment, wages, and prices at current levels Government to reduce taxes, lower interest rates, and create public-works programs Asked millions to give to charity

Volunteerism Fails to Bring Relief n n n Relied too much on voluntary cooperation Wanted to encourage not legislate, America’s recovery Business cut workers and wages Relied on localism = problems solved at the local or state level Believed it unconstitutional to have federal action

Hoover Adopts More Activist Policies n Trucks pulled by mules “Hoover wagons” n Campfires were “Hoover heaters” n Cardboard boxes were “Hoover houses” n American’s had negative feelings toward Hoover

Hoover Continued n Reconstruction Finance Corporation (RFC) – 1 billion in loans to railroads and large businesses n Trickle-down economics – Business owners would hire and money trickles down n Dam on the Colorado River – Boulder Dam (“Hoover Dam”) – Brought employment to some in the Southwest during the 1930 s