Hoover's Response

Hoover’s Response
Hoover’s Response
• Promoted recovery
• Increase public works
– Government financed building projects
– Had to increase government spending, Hoover
Raise taxes=hurt consumers
Keep taxes low, deficit spending=borrow from
banks=hurts consumers
Deficit spending would hurt the economy
• Asked Fed to create more $$
• Created the NCC
– National Credit Corporation
– Did not meet demand
• Reconstruction Finance Corporation
– Government do the lending
– Overly cautious
• Opposed relief
– Only states and cities
– 1932 Emergency Relief and Construction Act
An Angry Mood
• Hunger Marches
– Held by American Communist Party
“Feed the hungry, tax the rich!”
• Farmers Revolt
– 1930-1943
Over 1 million farms were repossessed
Farmers destroyed their crops
Dumped milk
• Bonus Marchers
Promise of $1,000 to WWI veterans
15, 000 camped out
Senate did not pass
Hoover ordered them gone
• Hoover
– Established the RFC
– Did more than any other president to expand the
economic role of the government
– Did not solve the Great Depression
People’s Response
• People had to change their lifestyles
– Soup Kitchens
– Hoovervilles
– Dust Bowl
• Huge drought in the Great Plains area
• Caused huge shift in population
– Entertainment
• Movies became more popular
• Radio
• Art
• Journal entries
– Pretend that you are living during the Great
– Write two journal entries that describe how your
daily life would be.
– Include 4 events from the notes, or chap 17
section 2-3, that would describe what is
happening at the time
– Each journal entry needs to be at least a
paragraph long