PRESIDENT HOOVER AND THE GREAT DEPRESSION

HOOVER’S PHILOSOPHY

RUGGED INDIVIDUALISM “hands off” approach by the government little to no government intervention people should be responsible for their

success or failurenot responsibility of the government

ASSOCIATIVE STATE voluntary partnerships between business

associations and government lead to a fair and efficient economy voluntary program – more “buy-in” work together to achieve goals for country

HOOVER’S PHILOSOPHYHOOVER DAM and the ASSOCIATIVE STATE partnership between private business and federal government federal government provided funding – independent companies designed

and constructed the dam construction began September 1930 and completed in 1935

fined per day if not completed on time approximately 100 people died during construction of dam

drowning, blasting, falling rock, falls from canyon walls, heavyequipment deaths

results were electricity and water supply to seven states

Hoover Dam - Vegas Vacation Story of US – Hoover Dam6:18 – 19min

HOOVER’S RESPONSEVOLUNTARY COOPERATION government should not provide direct aid to the people

guide people in the right direction create cooperation between businesses and government cooperation would lead to money for consumers to spend on goods – crisis

would pass NOT SUCCESSFUL!DIRECT ACTION (Reconstruction Finance Corp)Hoover’s Last Stand! country continued downward spiral – Hoover needed direction RFC – expansion of federal government role in business RFC initially given $500 million but allowed to borrow up to $2 billion• restore confidence in big industries ----restore purchasing power• large banks, railroads, farm mortgage associations, savings and

loanassociations, insurance companies

Federal Home Loan – encouraged new construction and reduce foreclosure Golden Gate Bridge and Los Angeles Aqueduct build through RFC funds too little too late as nation headed into election of 1932

RFC Stimulus

HOOVER’S RESPONSESMOOT-HAWLEY TARIFF ACT1930 Hoover gave into pressure from American industrialistsdesigned to protect American industry from overseas competition raise cost of imported goods so Americans could purchase cheaper

American made products largest tariff in American history Did not work global trade dropped drastically Europeans responded with tariffs on American goods

NATION’S RESPONSE to HOOVERPRESIDENT LOSES FAVOR Hoover lost credibility fairly quickly with optimistic comments

“the basic economic foundation of the nation is sound”“I am convinced that we have passed the worst”

Still no direct relief Gave billions to banks and businesses (RFC) but nothing to the people Hoover completely out of touch with the people

BONUS MARCH MAY 1932 WWI Veterans to receive bonus from service in 1945 – demanding bonus

NOW! marched to Washington and demanded discussion with President set up Hooverville outside White House Hoover sent in army when the veterans refused to leave – Army led by

MacArthur troops brought tear gas, guns, bayonets, tore down shacks, etc. pictures published in newspapers

Bonus March

NATION’S RESPONSE to HOOVERVOTER REACTION 1930 Midterm Election

Republicans controlled Congress during 1920’s1930 – Democrats won majority in the Housewithin 1 seat of taking the Senate

1932 Election – no way possible for Hoover to win FDR established personal connection with the people resulted in landslide victory for FDR and the Democratic Party Democrats also took control of the House and the Senate

FDR AND THE GREAT

DEPRESSION

ROOSEVELT’S PHILOSOPHYROOSEVELT’S STRENGTHS Optimistic, confident leader Effective communicator

out amongst the peoplemuch more connected to the people than Hoover had been

reform minded President – ideas seen as progressive (progress, change)

PUBLIC WORKS PROGRAMS FDR believed it was the governments job to take direct action and help the people

opposite to Hoover’s initial approach Duty of government to solve economic and social problems

those in need should receive assistance from the government Instituted public works programs

government funded building projectscreated to provide jobs to unemployed – put people back to work!

ROOSEVELT’S RESPONSEBANK HOLIDAY fixing the nation’s banking system was top

priority upon FDR’s election 2 days after his inauguration FDR took action large-scale withdrawals = bank failures = more

panic = more withdrawals = more bank failures FDR temporarily ordered all banks to close –

Bank Holiday FDR’s attempt at stopping banks from collapsing Emergency Banking Act – government officials

power to examine banks and either fix or close the banks

FDIC (federal deposit insurance corporation) – government insurance for savings deposits

idea was for people to feel safe enough to put their money back in banks again

banks began to reopenconfidence in banking system began to build$1 billion in new deposits within a month

HUNDRED DAYS FDR pushed Congress to put in place many

new government programs Programs all part of what Roosevelt promised

during his campaign – “a new deal for the American people”

New Deal programs pushed by FDR through Congress in an attempt to stimulate the economy

Government intervention believed to be the answer to recovery

these types of government programs known as “pump priming”

pumping money back into the economy programs attempted to accomplish 3 goals

relief – for those sufferingrecovery – of the depressed economyreform – prevent future economic crises

NATION’S RESPONSECONSERVATIVES saw the New Deal as being very radical –

too much government controlbreak from the traditional ideals of Americawent against everything our country was founded upon

• leading critic was Senator Huey Long from Louisiana

believed policies were too friendly to banks and businesses

• American Liberty League felt policies were antibusiness

• Balance of Powermany believed New Deal threatened balance of power between President, Congress and the courtsPresident has too much power under the New Deal

Hoover/FDR Video clips

New Deal Part 1

New Deal Part 2

Hoover