Hoovers Limited Strategy n n Hoovers beliefs were

Hoover’s Limited Strategy n n Hoover’s beliefs were that the key to recovering from the Depression was confidence. Hoover blamed economic conditions of the U. S. on the economic problems of the rest of the world. n Hoover believed that voluntary controls by businesses were the best way to end the Depression. n Hoover wanted business owners to freeze wages, and at first they did, however by 1931 business owners were quietly lowering wages. In the 1930 midterm elections the Republicans took quite a hit, losing control of the house, and the senate was much more balanced. n

Hawley-Smoot tariff-was the highest import tax in history. n The Hawley-Smoot tariff was one of the main reasons behind the slowing of the International trade. n This tariff backfired because then the European countries raised their tariffs respectively. This really slowed down the International trade on all fronts. n n Hoover set up the “Reconstruction Finance Corporation” or the RFC. The RFC gave government credit to a number of large industries, railroads and insurance companies. The act also sent money to banks to extend loans. n Hoover thought that if you helped the top, the results would trickle down to the rest of the Americans. However most Americans saw it as Hoover helping big business and ignoring the common man.

Hoover’s Unpopularity Grows n n n Hoover believed that state and local governments should handle relief efforts. The problem was that most local and state government didn’t have enough means to turn things around. Bonus Army-20, 000 homeless WWI Veterans and their families encamped in Washington D. C. They wanted immediate payment of their pension bonus’s that had been promised for 1945. General Mac. Arthur was given the task of clearing Pennsylvania Avenue with force, but he decided to remove all of the “bonus army” out of Washington.

The New Deal n n n Franklin Delano Roosevelt, or FDR, was a sign of hope for the American people. FDR promised the American people a new deal. He captured Americans with his appealing spirit of optimism. n FDR was governor of New York before he was president. n As governor FDR provided relief jobs for the unemployed.

The Election of 1932 n FDR won easily won the election of 1932 because of his promise of a new deal. n The 1932 election and FDR marked the beginning of more governmental involvement in the lives of Americans. People argued the idea of giving the federal government more power. America was founded on the idea of a small Federal Gov. n

The New Deal