Two Presidents Respond

Important Events

  • Creation of the Reconstruction Finance Corporation that gave more than a billion dollars of government loans to railroads and large businesses

  • Construction of the Hoover Dam brought jobs to many in the Southwest

  • The Bonus Army marched in Washington D.C.and were forced out by Douglas MacArthur using tear gas and bayonets

  • Franklin D. Roosevelt was elected and proposed a “New Deal” that involved the government actively working to repair the economy

  • The Bonus Army returned to the capitol and Eleanor Roosevelt sang songs with the Veterans to make them feel that the government cares

Important Individuals

  • President Hoover

    • intelligent man familiar with business methods and economic theory

    • tried several approaches to solving the depression but failed

  • Bonus Army

    • WWI soldiers that marched for their bonuses

  • Douglas MacArthur

    • General that forced the Bonus Army out of the capitol using force

  • Franklin D. Roosevelt

    • Democratic presidential candidate that believed the government needed to take a more active role in ending the depression

  • Eleanor Roosevelt

    • FDR’s wife who was heavily involved in public affairs

    • FDR’s “eyes and ears”

Timeline

  • Great Depression + Americans looked to Hoover for a solution

  • Hoover called for:

    • business to keep employment, wages, and prices at current levels

    • the government to reduce taxes, lower interest rates, and create public work programs

    • wealthier individuals to donate to charity

  • Businesses cut wages and laid off workers and farmers increased production

  • Hoover urged Congress to create the Reconstruction Finance Corporation

  • In the early 1930s Hoover called for the construction of a dam on the Colorado River

  • In 1932 thousands of WW1 veterans marched on Washington D.C. (Bonus Army)

  • Franklin D. Roosevelt was elected

  • The Bonus Army returned to the capitol

Consequences and Results

  • Unemployment increased, charities ran low on money, and local and state governments could no longer plug leaks in the economy

  • American associated suffering and poverty with president Hoover

  • Businesses did not use government loans as expected so the money did not make it town to the people who needed it (trickle-down economy)

  • Some people started believing that communism was the way to fight the depression

  • Although Hoover didn’t did not order the use of such forces he lost all change at reelection in the summer of 1932

Summary

President Hoover used multiple strategies to reverse the depression but was ultimately unsuccessful due to his focus on local and state governments. The people resented president Hoover and blamed him for their poverty, so they elected FDR as the next president.