Hoover Great Depression (Me)

Herbert Hoover's Presidency

  • Election and Background

    • Herbert Hoover (Republican) elected president in 1928.

    • Wealthy businessman; public believed he would bring continued prosperity.

    • Quote: "A chicken in every pot and a car in every garage." - Hoover, 1928.

Hoover's Philosophy on Economic Inequality

  • Quote from Dr. Adrian Rodgers (1931):

    • "You cannot legislate the poor into freedom by legislating the wealthy out of freedom."

    • Explains that wealth must be earned; one person's gain comes at another's loss.

    • Critique of dependency on government support undermining individual effort.

Hoover's Early Life and Career

  • Background

    • Grew up in a Quaker family.

    • Beliefs instilled:

      1. Plain living

      2. Importance of education

      3. Hard work

    • Quakers prioritize charity over prayer and emphasize self-reliance.

    • "The meanest thing a man can do is nothing."

  • Education

    • Initially failed entrance exam; earned degree in Geological Engineering from Stanford.

  • Career

    • Worked for an international engineering firm; became wealthy in mining.

    • Entered politics as Secretary of Commerce under President Woodrow Wilson.

    • Played a key role in relief efforts during WWI.

    • Organized the American Food Administration, ensuring food supply for Belgium and war zones.

    • Campaign slogans:

      • "Food will win the war"

      • "Meatless and Wheatless days"

      • "Clean plate club"

    • The term "Hooverized" emerged, indicating efficient action for a noble cause.

    • In a year post-WWI:

    • Distributed 27 million tons of supplies valued at $5.5 billion.

Hoover’s Political Platform

  • Advocated for:

    1. A 12-hour workday.

    2. Union bargaining for higher wages.

    3. Religious tolerance.

    4. 'Dry' policies (prohibition).

    5. Children’s health and welfare initiatives.

    6. Inheritance taxes.

    7. Strong banking industry and stock market regulations.

    8. End to child labor.

    9. Old-age pension plans.

  • Economic Beliefs

    • Advocated for capitalism and "rugged individualism"; influenced by Quaker values.

    • Opposed large government, big business monopolies, and favored unions.

    • Fought inflation while serving Coolidge, advocated for stock market regulation.

    • Firm proponent of the Gold Standard.

    • Believed America was close to abolishing poverty before the stock market crash.

The Great Depression and Hoover's Reaction

  • Cause of the Depression

    • Hoover attributed it to the "inherent weakness of the American banking system" exacerbated by greedy individuals.

  • Action and Response

    • Averaged 20 conferences daily during the depression; demonstrated strong grasp on economic details.

    • Initially optimistic; claimed unemployment effects would diminish in 60 days.

    • Coordinated efforts with business, labor, and government leaders:

    • Urged businesses to refrain from layoffs.

    • Asked labor unions to moderate demands.

    • Government officials to accelerate public works.

  • Public Works Initiatives

    • Projects included the Boulder (Hoover) Dam.

    • More public works projects initiated during his term than the last 30 years.

  • Financial Measures

    • Established Reconstruction Finance Corporation (RFC).

    • Provided loans to banks, insurance companies, mortgage firms, and railroads.

    • Proposed Home Finance Corporation to offer cheaper government mortgages, but it wasn't enacted until 1933 under Roosevelt.

    • Supported Glass-Steagall Act for loans to individuals and businesses.

    • Opposed radical actions and price controls, viewing them as fascist.

    • Refused direct relief to the public due to:

    1. Belief Federal money was sufficient for local governments.

    2. Concern over creating federal bureaucracy.

The Bonus Army

  • Background

    • WWI veterans demanded early payment of bonuses promised for 1945 due to the Great Depression exacerbating their situation.

    • In May 1932, 17,000 veterans and their families camped in Washington D.C.

  • Response

    • Most returned after the Senate denied early payments in June 1932, but several thousand remained.

    • Believed remaining protesters were Communists or Anarchists.

    • Hoover dispatched General Douglas MacArthur with military force to disperse the demonstrators using tanks and tear gas.

    • Actions resulted in casualties, including deaths of two protesters.

Stock Market Crash of 1929

  • Market Statistics:

    • Notable stock price drops leading to Black Tuesday.

    • Stock prices fell from 390 to 90 between 1927-1933.

Racial Inequality During the Depression

  • Segregation and racial inequality persisted, reflected in various signs and laws prohibiting services based on race (e.g. "Colored Waiting Room").

Hoovervilles

  • Makeshift shantytowns that emerged during the Great Depression, symbolizing poverty and homelessness.

F.D.R.’s New Deal

  • Initial Steps (1933-1934):

    • Addressed the banking crisis through multiple actions:

    1. Declared a bank holiday.

    2. Ended the gold standard.

    3. Established the Federal Deposit Insurance Corporation (FDIC).

    4. Implemented government regulations on the stock market.

    5. Conducted "Fireside Chats" to communicate with Americans.

  • First New Deal:

    • Key Programs:

    1. CCC (Civilian Conservation Corps): Employment for young men in public projects.

    2. AAA (Agricultural Adjustment Act): Subsidies to farmers and destruction of surplus.

    3. TVA (Tennessee Valley Authority): Development of regional power and infrastructure.

    4. PWA (Public Works Administration): Job creation through infrastructure projects.

The Second New Deal (1935-36)

  • Major reforms and initiatives:

    • Works Progress Administration (WPA)

    • Social Security Act.

The Third New Deal (1936-41)

  • Continued social reforms:

    • National Housing Act: Low-income housing initiatives.

    • Fair Labor Standards Act: Established minimum wage and maximum working hours.

The Dust Bowl

  • Caused by poor agricultural practices and prolonged drought; led to significant agricultural failure and mass displacement of populations.

  • Described in John Steinbeck's novel, "The Grapes of Wrath."

Brazilian Depression Responses

  • Economic Landscape:

    • Economy dependent on agriculture (coffee, rubber, etc.); 70% of GDP from exports.

    • Government-created Sao Paulo Institute for coffee regulation.

  • Political Response:

    • Military coup in 1930 installed Getulio Vargas as president.

    • Vargas initiated policies aiming to diversify the economy and reduce coffee dependence, including agricultural and industrial reforms.

  • Achievements:

    • Established new industries, regulated minimum wage, and improved infrastructure, leading to significant economic changes.