hoover’s public relief and economic reform 15.3. hoover’s philosophy “ i do not believe that...

Hoover’s Public Relief Hoover’s Public Relief and Economic Reformand Economic Reform

15.315.3

Hoover’s PhilosophyHoover’s Philosophy “ “ I do not believe that the power and duty of I do not believe that the power and duty of

the Government ought to be extended to the Government ought to be extended to the relief of individual suffering. The lesson the relief of individual suffering. The lesson should be constantly enforced that though should be constantly enforced that though the people support the Government the the people support the Government the Government should not support the Government should not support the people.”people.” –Herbert Hoover–Herbert Hoover

Hoover’s Public Relief

Opposition of Direct ReliefOpposition of Direct Relief Hoover rejected direct relief from the Hoover rejected direct relief from the

federal government for the needyfederal government for the needy = no food, shelter, clothing, or money for = no food, shelter, clothing, or money for

needyneedy Instead – Hoover believed private Instead – Hoover believed private

charities best suited for reliefcharities best suited for relief Hoover – hard work was the answer, not Hoover – hard work was the answer, not

handoutshandouts

Encouraging VoluntarismEncouraging VoluntarismHoover and many others believed Hoover and many others believed

voluntary efforts were preferable voluntary efforts were preferable to government aidto government aid

Private charities would not be Private charities would not be enough aidenough aid

Hoover’s Economic Reform

Hoover’s ReformSupports – gov. intervention for

businessTo stimulate economy

Rejects – laissez-Faire approach of hands off proposed by Sec. Of Treasury Andrew Mellon

Hoover’s Programs to End Depression

White House Conference

= meeting of top business, labor, and political leaders following the market crash

Hoover urged them to maintain pre-depression levels of production, employment, and wages

Public Works Programs Construction programs funded by the

government to stimulate business and reduce unemployment

Largest project was the Boulder Dam (Later called the Hoover Dam)

Also built over 800 public buildings and 37,000 miles of roads

Federal Farm Board (FFB)Established to help farmers help

themselves

Offered loans and bought crop surpluses when prices were low

Reconstruction Finance Corporation (RFC)

Authorized to lend up to $2 bill to stabilize banks & large companies

Purpose = strengthen businesses to prevent more failures and job losses

= no relief to businesses or people Benefits did not trickle down fast enough to

slow depression

Hoover’s Failed Policies Did not work They were not drastic enough to halt

the depression and Hoover continued to take the blame

BUT…The government accepted the idea that it can and should do something to boost the economy in times of crisis