Hoover’s Handling of the HardshipHoover’s Handling of the Hardship

How does Hoover’s policies increase the depression?

Hoover’s tries to reassure the country

• Hoover says economic downturn is a normal part of the cycle of capitalism

● Says businesses will fix the problem, no need for government assistance

-Charities should help the needy, not the govt

-Says his job is to keep govt from over-spending during crisis

Hoover to Business: We Need Help

● Works with leaders of business, banking, & labor asking:

1) employers, please don’t cut wages or lay off workers

2) bankers, please help charities generate $ for the poor

3) unions, please do not go on strike

● Doesn’t help, since many businesses are also suffering and going bankrupt

Hoover takes some action

- Dam provided electricity, water supply, & flood control, but most importantly construction jobs (temporary relief)

•Since business isn’t creating jobs, Hoover authorizes construction on Boulder Dam (renamed Hoover Dam)

More Government action

● Cooperatives: Private entities work together including, Fed. Farm Board: a cooperative aimed at raising crop prices

•Federal Home Loan Bank Act (1932)

•National Credit Corporation: loaned $ to smaller banks

-Lowered mortgage rates & allowed farmers to refinance

•Reconstruction Finance Corporation (1932)

-Authorized up to $2 billion for emergency financing to banks & ins. companies

•Although these actions helped, for many, this was too little, too late

Hoover vs. WWI Bonus Army• 1932: Bonus Expeditionary Force (Bonus Army), protests that

they did not get their $500 WW I bonuses yet!

• They argue that the money was approved in 1924, before the crash and they deserve their funds

● Violence erupts as Patman Bill (giving bonuses) is voted down by Congress

•Army sends in Gen. MacArthur & Maj. Eisenhower to stop rioting

- 1,000 ppl tear gassed

- 11-mo. old baby dies, 8-yr. old boy blinded

- Two killed, hundreds injured