Hoover’s Response to Hoover’s Response to the Great Depressionthe Great Depression

Herbert Hoover’s BiographyHerbert Hoover’s Biography

Supported Laissez Faire governmentSupported Laissez Faire government

Very Intelligent – graduated from Stanford, Very Intelligent – graduated from Stanford, president of Cornell Universitypresident of Cornell University

In WW1, organized food drive for starving civilians In WW1, organized food drive for starving civilians in Belgiumin Belgium

After the war organized a Relief for many After the war organized a Relief for many European countries to help stabilize some of the European countries to help stabilize some of the economieseconomies

Great HumanitarianGreat Humanitarian

Didn’t take a Pay CheckDidn’t take a Pay Check

First Year of PresidencyFirst Year of Presidency

Inaugurated March, 1929Inaugurated March, 1929

Economy was booming!Economy was booming!

Stock Market Crash, October 29th, Stock Market Crash, October 29th, 19291929

Common Perception Common Perception Economy was Economy was fine until Hoover came infine until Hoover came in

4 Problems with Hoover4 Problems with Hoover

1. Once economy collapses, Hoover gets the 1. Once economy collapses, Hoover gets the blame.blame.

2. Hoover is a millionaire – resented by 2. Hoover is a millionaire – resented by suffering people for thatsuffering people for that

3. The Problems during the Great Depression 3. The Problems during the Great Depression are so bad.are so bad.

4. His policies during his presidency are 4. His policies during his presidency are ineffectiveineffective

Worst Phase – 1930-1933Worst Phase – 1930-1933

Hit farmers hard (huge surplus of Hit farmers hard (huge surplus of food)food)

Farmer Revolts, Bonus ArmyFarmer Revolts, Bonus Army Bank FailuresBank Failures Unemployment – reaches as high as Unemployment – reaches as high as

25-30%25-30% Foreclosure/EvictionsForeclosure/Evictions

HOOVER’s Policies in HOOVER’s Policies in the GREAT the GREAT

DEPRESSION DEPRESSION

Man on the Spot: HOOVERMan on the Spot: HOOVER

We will now Discuss Hoover’s We will now Discuss Hoover’s Response to the Great DepressionResponse to the Great Depression

We will analyze and discuss each of We will analyze and discuss each of his Responses to the Great his Responses to the Great DepressionDepression

1. Smoot-Hawley Tariff1. Smoot-Hawley Tariff Extremely High TariffExtremely High Tariff

Hoover wanted to raise tariff higher to Hoover wanted to raise tariff higher to protect US goodsprotect US goods

AnalyzeAnalyze

Outcome:Outcome: 1. Raises the cost of goods1. Raises the cost of goods2. The tariff was one of the Causes of the 2. The tariff was one of the Causes of the Depression!Depression!

2. Presidential Optimism2. Presidential Optimism Hoover gave speeches in which he said this is a Hoover gave speeches in which he said this is a

temporary problem and encouraged people to be temporary problem and encouraged people to be positive thinkerspositive thinkers

AnalyzeAnalyze

Outcome:Outcome: 1. Not really solving anything, could be thought of 1. Not really solving anything, could be thought of as a liar if things don’t work out.as a liar if things don’t work out.2. Angered People b/c he is a millionaire! 2. Angered People b/c he is a millionaire!

- Cardboard box homes - Cardboard box homes Hoovervilles Hoovervilles- Newspaper blankets - Newspaper blankets Hoover Blanket Hoover Blanket- Pant Pocket turned out - Pant Pocket turned out Hoover Flag Hoover Flag

3. Taxes3. Taxes

Belief was if he Cut taxes Belief was if he Cut taxes people will people will have more $ to spendhave more $ to spend

AnalyzeAnalyze

Outcome:Outcome: 1. People have no money to begin with to 1. People have no money to begin with to be taxed, so less taxes does not matterbe taxed, so less taxes does not matter2. LESS GOVERNMENT SPENDING!!!2. LESS GOVERNMENT SPENDING!!!

3. People may hoard $, not spend it3. People may hoard $, not spend it

4. Plead with Big Business4. Plead with Big Business

Hoover begged Employers to not lay-off Hoover begged Employers to not lay-off workers, to rehire, and open up factories workers, to rehire, and open up factories (“voluntary cooperation”).(“voluntary cooperation”).

AnalyzeAnalyze

Outcome:Outcome:

- - Businesses can’t sell Businesses can’t sell can’t pay can’t pay employees employees can’t rehire b/c there is no can’t rehire b/c there is no work to be donework to be done

5. State and Local Government 5. State and Local Government Should Get InvolvedShould Get Involved

State and Local Government should find State and Local Government should find solutions, help people in a rough statesolutions, help people in a rough state

AnalyzeAnalyze

Outcome:Outcome: - Federal Government maintains this is not - Federal Government maintains this is not part of its responsibilitypart of its responsibility- States and local gov. have No Money to - States and local gov. have No Money to use b/c Hoover cut taxesuse b/c Hoover cut taxes

6. Charity6. Charity Does not believe direct relief is a good idea. Does not believe direct relief is a good idea.

He holds fast to his ideal of “rugged He holds fast to his ideal of “rugged individualism”.individualism”.

Ask Americans to be CharitableAsk Americans to be Charitable Give $ to charity, loan to neighbors, invite Give $ to charity, loan to neighbors, invite

troubled neighbors to dinnertroubled neighbors to dinner

AnalyzeAnalyze

Outcome:Outcome: - This is only a Temporary Solution- This is only a Temporary Solution- Gap between wealthy and poor is so big, - Gap between wealthy and poor is so big, wealthy could not give enough to help!wealthy could not give enough to help!

7. Reconstruction Finance 7. Reconstruction Finance Corporation (R.F.C.)Corporation (R.F.C.)

Program established in 1932 that Program established in 1932 that gave Fed government loans to banks gave Fed government loans to banks and businesses to help them “re-and businesses to help them “re-adjust”.adjust”.

AnalyzeAnalyze

Outcome:Outcome: Good idea, but waits too long and does Good idea, but waits too long and does not go far enough in Federal Aid. Also, helps big not go far enough in Federal Aid. Also, helps big business and not the average American.business and not the average American.

Election of 1932Election of 1932 Hoover (R) vs. Franklin D. Roosevelt (D)Hoover (R) vs. Franklin D. Roosevelt (D)

In the end, Hoover had the impossible task In the end, Hoover had the impossible task of defending failed policies and strategies. of defending failed policies and strategies.

Instead of campaigning, Hoover spent Instead of campaigning, Hoover spent time begging Roosevelt to not do anything time begging Roosevelt to not do anything too radical. too radical.

Hoover was afraid FDR would undo the Hoover was afraid FDR would undo the nation’s chance for recovery if he was too nation’s chance for recovery if he was too radical.radical.

Election of 1932Election of 1932Election of 1932Candidates

PartyElectoral

VotePopular

Vote

FDR Democratic 472 22,821,857

Herbert C. Hoover

Republican 59 15,761,845

Norman M. Thomas

Socialist 0 881,951

William Z. Foster Communist 0 102,785