Chapter 9 Section 3 Hoover Responds" Pages "
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1 Chapter 9 Section 3 Hoover Responds" Pages "
2 Things to think about:" n Federal Gov- Very small (5.9% vs 16% deficit spending) " n Everyone- misunderstood and underestimated depth and severity. " n Hoover never goes far enough. Can t think outside the box. "
3 Promoting Recovery n #1: n Hoover- downplay the public s fears n STAY CALM! n Hoover is positive/hopes economy is fine. n As things go continue to spiral down, people doubt Hoover s ability. "
4 Promoting Recovery cont n Voluntary Efforts and Public Works n Reality= Hoover actually worried: n #2): n Business agree to keep prices/salary up artificially (Lasts 1 year) #3) n Increases public works= government-financed building projects.
5 Promoting Recovery cont n How Public Works work (make sense?): n Lost jobs from private sector replaced by the public sector or government sponsored jobs.. n Doesn t go far enough and Hoover wouldn t increase Gov spending to continue it. n Also he won t: Won t raise New Taxes n Afraid.Deficit spending=gov had to take loans from banks Increases Credit Crunch.
6 Hoover Dam =Public Works" Nevada/Arizona Border workers (112 die) -Creates Lake Mead
7 Promoting Recovery cont n The Midterm Election- Americans Upset and want action and relief of some sort. n 1930, Republicans begin to take a hit and lose many seats n When times were good, the Republicans stayed in power now they are bad.they get the blame
8 Pumping Money into the Economy n Hoover s main goal= End the Credit Crunch n Banks need $$ to issue loans. n #4) n Rescue the Banks n Asks Federal Reserve Board to put more money into circulation, but they refused (Mistake) n In 1931-National Credit Corporation (NCC), = created $ for banks (So they could lend) "
9 Pumping Money into the Economy cont n Trying to Rescue the Banks cont n In 1932 =Reconstruction Finance Corporation, =federal money to banks, railroads, and agriculture. (RFC) n By 1932 =RFC lent over $238 million. n The RFC was too cautious. Not enough $$ loaned.
10 Pumping Money into the Economy cont n #5) Direct Help for Citizens n Hoover disagreed w/ DIRECT Gov relief ($ to people in need) Job of state and local gov to distribute relief. Wants to encourage rugged individualism instead n Spring of 1932 no $ left to give (GOV IS BROKE) n HOOVER= FAILS TO STOP the SPIRAL
11
12 In an Angry Mood n Hunger Marches n Hungry Americans began to march and loot. n In January of 1931 around 500 hungry, jobless people in Oklahoma City broke into a grocery store and looted it. n The American Communist Party sees opportunity."
13 In an Angry Mood cont n Farmers Revolt n Farmers owe large loans from WWI now can t repay. n creditors foreclosed on nearly 1 million farms. n Farmers =destroy their crops/livestock Drop Supply= Increase in Price n In Iowa- Vegetables Georgia- Milk destroyed.
14 Farmers dumping milk- 1931"
15 In an Angry Mood cont n The Bonus Marchers n WWI veterans granted $1,000 bonus to be distributed in n In 1931 want date moved up. Senate defeats bill. n May, Portland, Oregon veterans set off to march to DC to lobby Congress to pass the bill. n Others join, 1000 men walk along highways and road the rails to Washington DC. n Press calls them Bonus Army.
16 In an Angry Mood cont n The Bonus Marchers cont n Numbers swell to 15,000. n Most stayed in Hoovervilles or abandoned buildings. n Eyesore/Dangerous squatters in D.C. Hoover= GO HOME! (Bus Tickets) n Army sent in to clear the veterans out ugly picture for Hoover s reelection campaign. Douglas MacArthur
17 Bonus Army March in the summer of 1932 over 20,000 veterans from WWI marched on Washington, DC. Demanded their Bonus promised to them by the government for fighting in WWI. They were out of work and wanted to feed their families.
18 Battle of Washington July 28, 1932 President Hoover orders the army to remove Bonus Army from Washington, D.C. General Douglas MacArthur, later a WWII hero, was part of removing the Bonus Veterans.
19 August 28, 1932, Battle of Washington, D.C., US troops supplied with tanks fought skirmishes, made arrests and burnt down the camps of the Bonus veterans. The American people were appalled how President Hoover solved the problem. People felt Hoover had no compassion and would blame him for the Depression. He would not be
20
21 Bonus March on Capitol Steps"
22 Police Attack Bonus Marcher Camp"
23 Hoover s Legacy n Hoover failed to solve the problems of the Depression n He expanded the economic role of the federal government. Just not enough! n Too little, too late (baby steps) n Not creative enough (inside the box) n The declining economy and Bonus Marchers overshadowed Hoover s successes. n HE IS IN TROUBLE=ELECTION OF 1932"
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