9/21

• QOD: Based on our current economic situation, do you feel the government should help Americans deal with the problems of the current economy? Explain.

Herbert Hoover

1928-1932

Philosophy of Government

• Chief function of government is to encourage voluntary cooperation among interest groups

• Federal government should guide relief efforts, but NOT directly participate in them

• Volunteerism

Initial Response to the Crash

• CAUTION!

• Urged key leaders to work together to provide solutions and to act in way that would not make the economy worse– Asked business leaders not to lay off

employees– Asked union leaders to not go on strike

1930

• Economy continued to worsen

• Average Americans blamed Hoover for lack of government response

• 1930 Congressional elections: Democrats win majority of seats in Congress as a result of lack of Republican solutions

Hoover fights the Depression

• Due to results of election, Hoover eventually takes action– Boulder Dam (aka Hoover Dam): create jobs

& electricity

Hoover fights the Depression

• National Credit Corporation• Federal Farm Board• Federal Home Loan Bank Act• Glass-Steagall Banking Act• Reconstruction Finance Corp.

• However, the economy still continued to deteriorate

QOD 9/24

• QOD: (Recap) How did President Hoover initially respond to the stock market crash?

The Bonus Army- Summer of ‘32

• WWI Veterans receive a bonus for services based on the Patman Bill in 1945

• Veterans want the bonuses now due to hard economic times

• Hoover opposes immediate payment

Damaging Public Image

• Hoover called in the National Guard to send Bonus Army home

• Military Action:– Closed shantytown, “Hooverville”– Gassed the Bonus Army & families with tear

gas– One baby died due to tear gas– Led to public outrage

Lasting Results

• Damaged Hoover’s public image

• Democrat won the Presidential Election in 1932– Franklin Delano Roosevelt, FDR

Focusing Question(s)

• Does intolerance between American socio-economic groups still exist today?

• Should anything be done to bridge the gap and lack of intolerance between rich and poor?

• What problems could arise if these issues are not resolved?