Transcript Ch 14-3
Ch 14-3 Hoover’s response to the depression Hoover’s philosophy • When the stock market crashed, Hoover tried to caution the nation by telling them the nation was on sound footing. • Hoover’s advisor Andrew Mellon- advised Hoover not to do anything and let the economy fix itself. “let the system purge itself of the rottenness” Mellon Hoover’s philosophy • Hoover disagreed with Mellon and his approach to no action. • He believed the role of government was to foster cooperation between competing groups and interests. (business and consumers, banks) • Rugged individualism- Hoover’s belief that people should succeed through their own efforts. Discussion Was Hoover correct? Should government have been more involved? Steps taken by Hoover • Hoover called for a meeting of key business leaders, banks and labor union leaders. • He urged organizations to work together to not increase the problem. • Hoover created an organization to help private charities in assisting those in need The election of 1930 • Was a midterm election ( a report card for the president in office) • American voters reacted strongly against Hoover by giving control of the house of representatives and a decrease in senate seats. Hoover’s changing approach • Hoover realized that he was in danger of not being reelected given the current crisis so he became more aggressive in his approach. • He began projects such as the Boulder Dam construction, the Federal Farm Board, the National Credit Corporation, the federal Home Loan Bank Act and the Reconstruction Finance corporation. The Boulder Dam • A dam built on the Colorado River dividing Arizona and Nevada. • It created jobs for hundreds as well as creating a public works project. The Federal Home Loan Bank Act • A plan to lower mortgage rates for homeowners. • This plan also allowed farmers to refinance their farms and avoid foreclosure. Reconstruction Finance Corporation Act • Hoover’s most ambitious act that authorized emergency funding to banks. • Life insurance companies, railroads and other businesses also received government aid. • In total over 2 Billion dollars went out to businesses with the intent of promoting expansion. Sound famiilar?????? Hoover’s downfall -Hoover’s critics claimed he was too slow in responding to the Depression. -The Bonus Army- In 1932, Congressmen Wright Pattman advocated that WWI veterans receive the $500.00 bonus they were promised. -The veterans gathered in Washington while congress debated the issue it failed and 2,000 of the veterans refused to leave the city. (tents) The Bonus Army • When the veterans refused to leave, Hoover summoned Douglas Macarthur to to remove them. • Violence broke out and the nation was horrified that veterans would be treated so poorly. “I’ll hardly have any trouble getting elected now” Franklin D. Roosevelt The unpopular president The election of 1932