Hoover’s Response to
the Great Depression
Herbert Hoover’s Biography

Supported Laissez Faire government

Very Intelligent – graduated from Stanford, president of
Cornell University

In WW1, organized food drive for starving civilians in
Belgium

After the war organized a Relief for many European
countries to help stabilize some of the economies

Great Humanitarian

Didn’t take a Pay Check
First Year of Presidency

Inaugurated March, 1929

Economy was booming!

Stock Market Crash, October 29th, 1929

Common Perception  Economy was fine
until Hoover came in
4 Problems with Hoover
1. Once economy collapses, Hoover gets the
blame.
2. Hoover is a millionaire – resented by suffering
people for that
3. The Problems during the Great Depression are
so bad.
4. His policies during his presidency are ineffective
Worst Phase – 1930-1933
Hit farmers hard (huge surplus of food)
 Farmer Revolts, Bonus Army
 Bank Failures
 Unemployment – reaches as high as 2530%
 Foreclosure/Evictions

HOOVER’s Policies in the
GREAT DEPRESSION
Man on the Spot: HOOVER

We will now Discuss Hoover’s Response to
the Great Depression

Analyze each of his Responses to the
Great Depression using the sheet that you
picked up at the Beginning of Class
1. Smoot Hawley Tariff

Extremely High Tariff

Hoover waned to raise tariff higher to protect US
goods
Analyze
Outcome:
1. Raises the cost of goods
2. The tariff was one of the Causes of the
Depression!
2. Presidential Optimism

Hoover gave speeches in which he said this is a
temporary problem and encouraged people to be
positive thinkers
Analyze
Outcome:
1. Not really solving anything, could be thought of as a
liar if things don’t work out.
2. Angered People b/c he is a millionaire!
- Cardboard box homes  Hoovervilles
- Newspaper blankets  Hoover Blanket
- Pant Pocket turned out  Hoover Flag
3. Taxes

Belief was if he Cut taxes  people will have
more $ to spend
Analyze
Outcome:
1. People have no money to begin with to be
taxed, so less taxes does not matter
2. LESS GOVERNMENT SPENDING!!!
3. People may hoard $, not spend it
4. Plead with Big Business

Hoover begged Employers to rehire, open up
factories
Analyze
Outcome:
- Businesses can’t sell  can’t pay employees 
can’t rehire b/c there is no work to be done
5. State and Local Government
Should Get Involved

State and Local Government should find
solutions, help people in a rough state
Analyze
Outcome:
- Federal Government maintains it is not part of
its responsibility
- No Money to use b/c Hoover cut taxes
6. Charity


Ask Americans to be Charitable
Give $ to charity, loan to neighbors, invite
troubled neighbors to dinner
Analyze
Outcome:
- This is only a Temporary Solution
- Gap between wealthy and poor is so big,
wealthy could not give enough to help!
7. Reconstruction Finance
Corporation (R.F.C.)

Program established in 1932 that gave Fed
government loans to banks and business
to help them re-adjust
Analyze
Outcome: Good idea, but waits to long and
does not go far enough in Federal Aid
Election of 1932

Hoover (R) vs. Franklin D. Roosevelt (D)

In the end, Hoover had the impossible task of
defending failed policies and strategies.

Instead of campaigning, Hoover spent time
begging Roosevelt to not do anything too
radical.

Hoover was afraid FDR would undo the nation’s
chance for recovery if he was too radical.
Election of 1932
Election of 1932
Candidates
Party
Electoral
Vote
Popular
Vote
FDR
Democratic
472
22,821,857
Herbert C.
Hoover
Republican
59
15,761,845
Norman M.
Thomas
Socialist
0
881,951
Communist
0
102,785
William Z. Foster