Do Now.

Brainstorm some possible solutions to the
problems that existed during the Great
Depression
Hoover’s Reaction to the
Great Depression
Chapter 21 Section 3
Hoover reacts to the Great
Depression
Herbert Hoover (1929-33)

Hoover had been a skillful businessman—
people were confident in him
– Optimistic view
Believed that America should recover
through individual effort
 NOT through government assistance

– What did Hoover mean by this? What is the
difference?
Hoover Opposes Direct Relief
People see a clear need for direct government
assistance—money, food, or resources given
directly from the government to the needy
 Hoover opposes this

– “The people support the Government the Government
should not support the people”
 What does this mean?
 Why do you think Hoover felt so strongly about this even
though people were starving?
– Believes in Rugged Individualism
Rugged Individualism
Voluntarism
Belief the volunteer
efforts were a better
choice than
government aid
 Many Americans
agree, but it quickly
becomes obvious that
more help is needed

– Hoover still firmly
sticks by his
philosophies/policies
Hoover saw that he must do something.
Asked
businesses to
keep wages,
employment,
and prices at
current levels
Called for
tax cuts,
lower
interest
rates, and
public works
Asked
wealthy to
donate more
money to
charity
But volunteerism failed.
Hoover put his faith
in localism, a
policy whereby
problems are best
solved at the local
and state levels.
•
Towns and states
didn’t have the
necessary resources
to deal with the
depression.
•
Hoover did not
support direct
federal aid to
individuals.
Economy

Hoover’s advisors want total a laissezfaire approach
– Let businesses recover on their own

Hoover actually intervenes
– Urges business to maintain pre-depression
levels of production and employment—hoping
to stimulate the economy

Supports many government public works
projects—Hoover Dam (Boulder Dam)
One policy that did succeed
was the construction of
Boulder Dam, (later
renamed Hoover Dam)
across the Colorado River.
Started in 1930, the huge dam
provided power for more than
a million people and irrigation
for farm land, and brought
needed jobs to the Southwest.
Hoover Dam
Other Government Assistance
Federal Farm Board (FFB) (loans to farms)
 Reconstruction Finance Corporation (RFC)
(loans to businesses)

– Preview a major shift in government policy,
even though Hoover administration fails to
end depression
In 1932, Hoover
urged Congress to
create the
Reconstruction
Finance
Corporation (RFC).
The RFC employed a
policy known as
trickle-down
economics.
The RFC gave billions
of dollars to banks and
large businesses.
The idea was that they
would lend to, and
invest in, struggling
businesses who would
hire workers and thus
end the depression.
The RFC failed when
businesses did not
hire more workers.
America is ready for a change
Hoover is hated in 1932
 Increased radicalism—communism,
socialism
 Increasing activism against the
administration

Many grew disillusioned during the
Great Depression.
• Some blamed Hoover and some blamed capitalism.
• Some were World War I veterans who wanted a
bonus that was promised to them.
• In 1932, those veterans formed the Bonus Army
and marched on Washington.
In the summer
of 1932, almost
20,000 veterans
set up camps and
occupied vacant
buildings. In
July, police tried
to evict them and
riots erupted.
Hoover ordered
General Douglas
MacArthur to
remove the
veterans. He used
tear gas, cavalry,
tanks, and troops
with fixed bayonets.
Press photos of
troops using
excessive force
angered the
American public.
The eviction of the
Bonus Army
doomed Hoover’s
bid for re-election.
Americans were
ready for new
leadership and a
greater role for the
government in
solving problems.