hoover and the depression. hoover’s philosophy gov’t should encourage cooperation –but not...
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Hoover and the Depression
Hoover’s philosophy
• Gov’t should encourage cooperation– But not demand or force it
• People should rely on themselves– Not the gov’t– “rugged individualism”
• Opposed to welfare or relief– Handouts make people weak
Reluctance to act
• Asked employers to avoid layoffs
• Asked labor to avoid asking for pay hikes
• Used gov’t to coordinate relief efforts– But not to pay for them
• Has almost no effect on the economy
Boulder Dam
• Hoover called for dam in Nevada– Generate electricity– Control flow of Colorado River
• Leads to California’s agricultural explosion
• Makes Las Vegas growth possible
• Now known as…
Hoover Dam
Hoover Flags Hoover Blankets
Hoover Responds• Pushes for cooperatives
– Agreements among companies– Loans from big banks to small banks
• Fed Home Loan Bank Act– Lowered mortgage rates– Help to avoid foreclosure
• Reconstruction Finance Corporation– 2 Billion dollars for banks and large business
• “Trickle down approach”– By helping large companies, money would
trickle down to average citizens through job growth and higher wages.
– Critics argued the program would benefit only corporations and the poor still needed direct relief.
The Bonus Army
Fight with the Bonus Army
• Bill was passed to pay WWI Vets a bonus– Passed in 1924– To be paid in 1945
• Cong. Patman wanted bonus paid now– Hoover disagreed– Bill to pay them is voted down in Senate
• Vets march on Capitol Hill– 2,000 refuse to leave
Hoover disbands Bonus Army
• Sends 1,000 troops to remove vets
• Infantry gasses the veterans– Baby dies, child blinded
• Hoover more unpopular– His presidency is doomed