hoover and the depression

• Little vision when it

came to the

Depression.

• Thought it a minor

recession.

• Opposed direct relief

• Called for “rugged

individualism”

• What we will analyze today is the

• “Hoover Remedies”

• Three phases

•Phase One: 1929-1930

•Phase Two: 1930-1931

•Phase Three: 1931-1932

• Meetings with influential businessmen

•Maintain employment, wages, prices

• Asked Fed. Reserve to make it easier

to borrow $$

• Asked Congress to cut taxes

•People spend more

• Consequences:

• Little aid for lower & middle income groups

• HH’s popularity plummeted

• During war, name synonymous with patriotism; during Depression, distress

• Hoovervilles

• Bound to conservative

philosophy keep

government small;

shift blame to Europe.

• As economic

indicators rose in

1931, Austria’s larges

bank failed triggers

panic. Issues a one

year moratorium.

• Hawley-Smoot Tariff (1930): directly tied to the question of reparations and war debts

• Emergency Committee for Employment (Oct. 1930) under command of Arthur Woods to create jobs

Rep. Willis C. Hawley and Senator Reed Smoot

1929

• Hoover’s efforts

include what he called

the “Drip-o-lator”

Method: Trickle down

economics.

• This conservative

notion is much

maligned by liberals

as the following

images indicate.

• Hoover’s efforts

include what he called

the “Drip-o-lator”

Method: Trickle down

economics.

• Home Loan Banks

• Reconstruction

Finance Corporation

(RFC)

• Too little, too late.

• Rise in Communism

• The Bonus

Expeditionary Force

From Click Magazine,

1930

• Too little, too late.

• Rise in Communism

• The Bonus

Expeditionary Force

From Click Magazine,

1930

• In the end, the Bonus

March seals Hoover’s

fate.

• He will be defeated by

Franklin Delano

Roosevelt in 1932

marking the next

phase of the Great

Depression.