Herbert Hoover the Vacuum Plan 1 for Hoover

Herbert Hoover: the Vacuum!

Plan #1 for Hoover 1. At first, Hands-off policy 1. Depressions are like storms- strong business will survive 2. No need for Gov’t interference 2. Realizes this is not a real plan- calls upon volunteerism! What could be the problem here? ! 1. Asks businesses to keep employment, wages, and prices same as before 2. Gov’t: reduce taxes, lower interest rates, and create public work programs 3. Wealthy- give your goods to the needy

Localism 1. Local city and state gov’t are best to solve problems 2. Hoover resists using Fed. Gov’t Resources- against the Constitution 3. Favored “rugged Individualism” 1. What does he mean by this? !

Reconstruction Finance Corporation (RFC) v 1932 v. Believed economy lacked credit v. Billion+ in $$$ loans to railroads and businesses v. Theory of Trickle-Down Economics

What is Trickle. Down Economics? Money poured into the top of the economy would “trickle down” to the base ( the common people) Banks Businesses/corporations Great Idea right? !? What could be the problems with this theory? Employees

Based on these two cartoons, what do you think the problem was with the “trickle-down” theory?

Hoover Dam 1929 Public works job to get people back to work Located on the Colorado R. near Vegas Nevada, California, and Arizona all use this dam for power

The Bonus Army v. Read the document v. In your journal, identify the following: v. Who v. When v. What v. Where v. Significance v 2 interesting facts v. We will have a quiz on the causes of the Great Depression, life during the great depression, and Herbert Hoover on Wednesday/Thursday