Hoover's Response to the Great Depression

Hoover's Response to the Great Depression

I. Hoover the manstrong belief in the power of the individualsuccessful businessman, well-respected, well-knownhumanitarian believed in helping othersbelieved in small government

President Herbert Hoover, 1928:When the war closed [we] were challenged with a peace-time choice between the American system of rugged individualism and a European philosophy of paternalism and state socialismBy adherence to the principles of decentralized self-government, ordered liberty, equal opportunity, and freedom to the individual, our American experiment in human welfare has yielded a degree of well-being unparalleled in the world. It has come nearer to the abolition of poverty, to the abolition of fear of want, than humanity has ever reached before

II. Conservative / Status Quorugged individualism1. people can succeed through their own effortsB. laissez faire , but not a do nothing1. felt govt. could solve economic problem in a limited roleC. believed in the business cycle

Hoover BlanketsSoon realized that doing nothing was NOT a policy at allHoover FlagsHoovervillesIII. Reliance on volunteerism Encouraged, but didnt legislateasked business and labor to work together toward common goalsasked Congress to reduce taxes, lower interest rates, & create public works projectsasked wealthy to give more $ to charityIV. Hoovers ProgramsGive a Job campaign1. businesses should create jobsB. 1930 ~ Democrats win majority in Congressput money in at business levelReconstruction Finance Corp. 1.5 million to banks, RRs, etc

Wages = $$$

More Jobs

BusinessesUnemployed$ from the governmentTrickle Down Theory ~ Andrew Mellon

V. Hoover = symbol of failureRise of socialist & communist parties in U.S.1. some blamed capitalism and democracy for the Depression2. but calls for revolution could NOT compete with the American dream

VI. Bonus Army - Summer 1932Hoover vetoed a bill passed in Congress to grant the bonusesasked Army to disperse the veteranspublic outraged at use of forcehopes of reelection are dashed