The Great Depression The Herbert Hoover Years 1929

The Great Depression: The Herbert Hoover Years 1929 -1933

Big Idea • Herbert Hoover’s conservative response to the Great Depression was criticized by many Americans and ushered in the New Deal

Herbert Hoover • Elected in 1928 • Promised to end poverty • Remained optimistic about the economy • Pointed to boom and bust cycle

Hoover’s Philosophy • Government should play limited role in helping people • No direct relief for needy • Rugged Individualism

Hoover’s Philosophy • Government served to help groups of people cooperate • Examples • Businesses • Unions • Farmers • Banks • This cooperation was VOLUNTARY!!!!!

The Boulder Dam: A Public Works Program • Cost 700 million dollars • World’s tallest dam at the time • Provided water and energy to cities such as LA and later on Las Vegas • Created jobs

1930 Midterm Elections • Democrats captured many seats • Due to unpopularity of Hoover • Hoovervilles • Hoover Blankets • Hoover Flags

Cooperatives • Federal Farm Board • National Credit Corporation • Farmers attempted to keep some crops off the market • Large banks would loan • Wanted to raise prices money to smaller ones • Participation: Voluntary

Direct Intervention • Federal Home Loan • Reconstruction Finance Bank Act Corporation • Lowered mortgage rates • 2 billion dollars given for homeowners out to businesses • Promoted job growth and higher wages

Criticisms of Reconstruction Finance Corp. • Too little too late • Ask yourself if this was a violation of this • RFC was a form of direct philosophy? relief for corporations. • Why not people in need?

The Bonus Army • WWI vets and their families came to Washington DC • Demanded their bonus NOW!!! • $500

The Gassing of the Bonus Army Hoover ordered 1, 000 soldiers to disperse the crowd Tear gas used 11 month old baby died Hundreds injured Sealed Hoover’s Fate

Election of 1932 Republican Democrat

1932 Election Results