‘In Hoover we trusted and now we are
busted.’
THE GREAT DEPRESSION
• The depression was a period in the 1930s
when the American economy had collapsed.
• Between 1929-1932, over 100,000
businesses collapsed and 15 million people
became unemployed.
• The depression was caused by a number of
factors.
In your notes draw a spider diagram to show
these factors.
In the cities….
The car industry was hit hard. In 1930 car production dropped by 30%.
Within a year it had dropped by a further 29%. By 1932 production levels
were at their lowest since 1918. Many went bankrupt.
Desperation was apparent on the streets of Chicago
Private charities like the Salvation Army provided soup kitchens for
the unemployed. They nicknamed it ‘Hoover stew’.
Shanty towns like the one below appeared in cities all over
America. They were known as ‘Hoovervilles’.
Americans had lost faith in the hard-hearted Republican attitudes
towards welfare.
In the
countryside of
the midwest….
The Dust Bowl affected the states of Texas,
Colorado, New Mexico, Kansas and Oklahoma.
By the 1930s the top soil had became loose due
to the planting of wheat during the boom and
over-grazing of livestock. High winds and dust
storms swept away the top soil of the land and
combined with a 7 year drought that began in
1931, destroyed many livelihoods.
Families were destitute.
The Depression - start at 42mins
• https://www.youtube.com/watch?v=bCEJ65H
_1XE
1932 – Bonus marchers staged a protest to claim the bonus money promised to
them for fighting in the war. They camped around the White House in tents
they called ‘Hoovervilles’. Hoover eventually instructed the army to break up
the protest using tear gas and tanks!
Unemployment
1. What happened to unemployment:
• across America
• in the major industrial cities?
2. Which group tended to be less affected by unemployment?
3. What relief was available to the unemployed from local / state
governments and charities?
Life of the unemployed
4. List the key points of evidence given by William Foster on life for the
unemployed.
6. Why were people insecure?
7. “People went hungry in one of the richest food producing countries in
the world”. Why?
8. What were ‘Hoovervilles’?
9. How did Hoboes live?
10. How did unemployment affect:
• suicide rates
• marriage levels
• crime rates [See source]?
11.How did the government respond to the Bonus Army?
Who is to blame for the Depression?
"It is not the function of the
government to relieve individuals
of their responsibilities to their
neighbours, or to relieve private
institutions of their
responsibilities to the
public." Hoover.
Why did the Republican government
continue with rugged individualism?
1.
2.
3.
4.
5.
Hoover’s role was to coordinate not to lead
Unbalance the budget
Create a class of welfare dependents
Weaken government
Destroy the people’s sense of responsibility –
Self help was the way forward
Self help failure
• Charities, churches and trade unions were unable
to provide relief.
• Charities could only provide 6% of the aid
needed.
• States could offer little support as unemployed
citizens = lower revenue from taxes. State
governments had to cut costs elsewhere.
E.g. Arkansas – schools closed for 10months a year
in a bid to save money
• Hoover believed the old approach of hard work
and little interference would create prosperity
once again.
• Hoover remained hopeful about the situation,
claiming in March 1930 that the worst “effects
of the crash upon unemployment will have
passed during the next 60 days” – this created
RESENTMENT and he lost CREDIBILITY.
Hoover’s Policies
What did he do?
How successful?
SCHEMES - $423m spent on Government
building programme including Hoover
Dam
Created 21,000 jobs and boosted nearby
Las Vegas
FARM BONDS – Surplus farm produce was Initial success until 1932 when budget ran
purchased at the commercial rate to
out. Farmers still overproduced.
stabilise prices
RAISED TARIFFS - Hawley-Smoot Act 1930
raised tariffs on foreign imports by 50%
Foreign countries raised tariffs for US
imports
RECONSTRUCTION FINANCE CORPORATION was Hoover’s greatest effort to
combat the effects of the Depression.
Pro’s – Loans to State government - $1.5 billion for public works and $3000
million for relief. $150 million loans to businesses to increase employment.
$2 billion in loans to banks, railroad and construction and insurance
companies on the brink of collapse (70% of which went to small town banks)
Cons – Help was aimed at big business instead of individual poverty. Some
argued more should have been spent on relief.
ARGUMENT - Was Hoover to blame?
•
•
•
•
Refused to spend government money
Refused to authorise full scale relief programmes
Policies were too narrow in scope
Unemployment remained high especially in
Chicago where it reached 40%
• Unpopularity was evident in the 1932 election
where he lost with 40% of the votes
• He was a scapegoat for the Depression - Will
Rogers quipped that a man bit into an apple,
found a worm, and exclaimed, “Damn Hoover.”
• According to Nixon – “Hoover had the misfortune
to hold office at the wrong time”