Hoover as PresidentChapter 21 section 3

Philosophy

• Rugged Individualism:– Unnecessary government dimmed the spirit of the American people– Believed deeply that it was vital for the nation’s well-being not to

destroy people’s belief in their own responsibility and power.

• Associative State:– Businesses should form voluntary associations that would make the

economy more fair and efficient.– Called together business leaders and experts to discuss ways to

achieve national goals.

Hoover Dam

• Harness Colorado River to produce electricity and water supply for 7 states.

Hoover’s Response to Great Depression

• Voluntary Action– Government should seek to AVOID direct involvement in the lives of

people– Pushed for Farmer cooperatives

• Groups of farmers buy equipment together and share– Urged business leaders not to lay-off employees or cut wages

Hoover’s Reluctance

• Direct Action– 1932 Reconstruction Finance Corporation

• $2billion in direct government loans given to struggling banks and insurance companies

– Federal Home Loan Bank• Encouraged homebuilding • Reduced foreclosures

– Smoot Hawley Tariff Act• Raised cost of imported goods• Europe responds with higher taxes on our goods• DISASTER for TRADE

The Nation Responds to Hoover

• “We have passed the Worst”• People question his compassion• Why is he willing to give money to banks and business but not

individuals?

BONUS MARCH page687

1932 Election

• Hoover didn’t bother to campaign• Franklin Delano Roosevelt

– Criticizes Hoover’s Actions– Promises to help the Forgotten Man– Offers public works programs– As Governor of New York

• Creates a ground breaking relief program that helps 1 in 10 NY families.

Landslide Victory

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