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