HOOVER AND RUGGED INDIVIDUALISM

Presidency

Big WinPromised continued prosperity

Popular with both partiesWeakness---- Timing!!!!! (Crash of ‘29)

Rugged Individualism

Personal Attitude toward Depression and Individual self-Reliance Accepted traditional, conservative approach

Optimistic- “Recovery will occur naturally” Believed the economy is self-regulating Avoid Federal government interference in

the economy Industry knows best how to stimulate

recovery

Hoover & Individualism

Preached “Rugged Individualism”- people should not expect gov’t helpOpposed direct relief or “Public

Assistance”Make sacrifices; led the way

w/20% cut of his own salaryUrged state and local governments

to provide reliefDepressions are a local problem

Hoover & Individualism

Federal Gov’t must maintain a balanced budget; no deficit spending

Criticism mounted -- poor P.R., “ Hoover prefixes (ex. “Hoovervilles”)

Hoover & Individualism

Depression Actions/ Policies (aimed at “priming the economic pump”)1029- Federal Farm Board- Farm

cooperatives would voluntarily Coordinate crop production (region by region)

Withhold crops from market until prices rose

Hoover & Individualism

1929- Cut Federal income tax; however it made little difference because:Taxes were already so low (average family saved $3.75 per year)

The wealthy saved their tax cut; frightened of the future

Hoover & Individualism

1930- signed the Hawley – Smoot Tariff Act into law Raised protective tariffs to their highest level

ever Goal: to protect farmers & manufactures Result; A trade war; worldwide trade declined

by 40% (backfired)

Hoover & Individualism

1932- RFC (Reconstruction Finance Corporation) Granted $2 B in loans to save big business,

banks, & railroads Attempt at “trickle Down” theory of indirect

relief Summary: too little, too late Fact: unemployment in 29= 2 million,

1932=12 million

Hoover & Individualism

1932- Bonus Army ( WWI Vets) marched to Washington D.C. Hoover hid in the White House, destroyed his

chances of reelection

Hoover & Individualism

Lost election of 1932 by a landslide to FDR

FDR_1st_Inaugural_Edited_Version.mp3

Hoover and Individualism

Hoover is often blamed for the Depression (unfair)?

Fact : did more than any president before him had done during a depression.