Hoover Fails

US History

Slide 1

-At the start of the economic downturn,

Hoover took a hands-off approach.

-Like most economists of the day, he believed that up and down swings in the economy were a natural part of the business cycle.

Slide 2

-Few Americans understood the causes of the Great Depression, but everyone felt the impact.

-Between 1921-1929, the unemployment ratenever rose above 4%. By 1933, however, it was near 25%.

-Those who managed to keep their jobs had their wages and hours cut.

Slide 3

-For many, the only food available came from public soup kitchens or bread lines run bycharitable organizations.

-People sold their property to buy food.

Slide 4

-The homeless lived in empty railroad cars, in cardboard boxes, or in shacks built on public land or empty lots.

-Hoovervilles appeared in major cities across the country.

Slide 5

Hoover saw that he must do something:

-Asked businesses to keep wages, employment, and prices at current levels.

-Called for tax cuts, lower interest rates, and public works.

-Asked wealthy to donate more money to

Slide 6

In 1932, Hoover urged Congress to create the Reconstruction Finance Corporation (RFC). The RFC employed a policy known as trickle down economics.The RFC gave billionsof dollars to banks and large businesses.

The idea was that they would lend to, and invest in, strugalina businesses who would hire workers and thus end the depression.

The RFC failed when businesses did not hire more

Slide 7

-One policy that did succeed was the construction of Boulder Dam (later renamedHoover Dam across the Colorado River.

-Started in 1930, the huge dam provided power for millions and irrigation for farm land, and put thousands to work.

Slide 8

-Many grew disillusioned during the Great Depression.

-Some blamed Hoover and some blamed capitalism.

-Some were World War I veterans who wanted a bonus that was promised to them.

-In 1932, those veterans formed the Bonus Army and marched on Washington.

Slide 9

-20,000 veterans set up camps and occupied vacant buildings. In July, police tried to evict them and riots erupted.

-Hoover ordered General Douglas MacArthur to remove the veterans. He used tear gas, cavalry, witk fixed bayonets.

-Press photos of troops using excessive force angered the American public.

Slide 10

-The eviction of the Bonus Army doomed Hoover's bid for re-election.

-Americans were ready for new leadership and a greater role for the government in solving problems.