1930s Herbert Hoover Lecture 4


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  • 1930s Herbert Hoover Lecture 4

    1. 1. The Great Depression
    2. 2. <ul><li>What are the two key features of President Hoover’s main beliefs about government? </li></ul><ul><li>How was the associative state supposed to work? </li></ul><ul><li>What do you think Hoover meant by “rugged individualism”? </li></ul><ul><li>What actions did Hoover take in response to the Great Depression? </li></ul><ul><li>How were cooperatives supposed to help farmers and why did they backfire in the face of economic disaster? </li></ul><ul><li>Why did Hoover have a problem with credibility? </li></ul><ul><li>Do you think that Hoover should have been more concerned about a balanced federal budget or about overspending and expanding government to help people? </li></ul>
    3. 3. <ul><li>Entered the presidency knowing how he wanted to run the country </li></ul><ul><li>His core beliefs guided his action when the crisis of the Great Depression hit </li></ul>
    4. 4. <ul><li>Served under Harding and Coolidge </li></ul><ul><li>Shared their pro-business, limited government belief </li></ul><ul><li>Thought too much government threatened prosperity and American people’s belief in their own power and responsibility </li></ul>The philosophy that people can make it on their own and that government shouldn’t help
    5. 5. <ul><li>Hoover believed businesses should form voluntary associations </li></ul><ul><li>Associations would then work w/ government experts to accomplish public initiatives </li></ul><ul><li>Hoover called meetings of business leaders and government experts to figure out how to achieve public goals </li></ul>Voluntary partnership between business associations and government
    6. 6. <ul><li>One main project of Hoover’s associative state was the construction of the Hoover Dam </li></ul><ul><li>Gov. funded the project and six companies worked together to design and build it </li></ul><ul><li>GOAL: harness Colorado river, provide electricity and water to 7 states </li></ul><ul><li>Dam showed success of partnerships between business and government </li></ul>
    7. 7. <ul><li>Believed government should NOT provide direct aid to people </li></ul><ul><li>Wanted to help struggling farmers </li></ul><ul><li>Pushed for loans to create and strengthen farm cooperatives </li></ul><ul><li>Farmer cooperatives (large group of farmers) could buy materials (like seeds) at lower prices than individual farmers </li></ul><ul><li>Hoover thought this would help farmers market crops and prices might rise </li></ul><ul><ul><li>Increasing farmers income </li></ul></ul>Cooperative: an organization that is owned and controlled by its members, who work together for a common goal
    8. 8. <ul><li>Worsening economy led Hoover to alter his beliefs </li></ul><ul><li>1932 – Hoover urged Congress to create Reconstruction Finance Corporation (RFC) </li></ul><ul><ul><li>Gave $2 billion in direct government loans to failing banks, insurance companies, etc. </li></ul></ul><ul><li>Also created Federal Home Loan Bank </li></ul><ul><ul><li>Encouraged home building </li></ul></ul><ul><ul><li>Reduced number of home foreclosures </li></ul></ul><ul><li>Huge increase in governments role </li></ul><ul><li>But the help came too late </li></ul>
    9. 9. <ul><li>1930 – signed the Smooth-Hawley Tariff Act </li></ul><ul><ul><li>Raised cost of imported goods </li></ul></ul><ul><ul><li>Hoped they would buy cheaper American goods </li></ul></ul><ul><li>Europeans responded by placing tariffs on U.S. goods and trade plunged </li></ul><ul><ul><li>Dropped ¾ between 1929 and 1934 </li></ul></ul><ul><li>TOTALLY BACKFIRED </li></ul>
    10. 12. <ul><li>Claimed the economy was better than it was </li></ul><ul><li>Overestimated efforts being made to deal with the Depression </li></ul><ul><li>As things got worse, people couldn’t understand why Hoover: </li></ul><ul><ul><li>Didn’t offer them direct relief </li></ul></ul><ul><ul><li>Gave banks and businesses billions and zero to individuals </li></ul></ul>
    11. 13. <ul><li>May 1932 – 15,000 WWI Veterans set up camp near the nation’s capital </li></ul><ul><li>Trying to pressure the federal government to pay them a veteran’s bonus </li></ul><ul><ul><li>Cash promised to them for their service in WWI </li></ul></ul><ul><ul><li>Money not supposed to be paid to them until 1945 </li></ul></ul><ul><li>Congress denied their demands </li></ul><ul><li>Many left, others remained leading to violence between police and Bonus Marchers </li></ul><ul><li>Camps were burned, two killed, hundreds injured </li></ul>
    12. 15. <ul><li>Hoover’s opposition to the Bonus March worsened his reputation </li></ul><ul><ul><li>Reason for his opposition was he wanted a balanced budget </li></ul></ul><ul><ul><li>Gov. didn’t have money to pay out the bonuses </li></ul></ul><ul><li>To achieve a balanced budget, Hoover pushed for a large tax increase in 1932 </li></ul><ul><ul><li>Larger tax burden = highly unpopular when people are struggling </li></ul></ul>
    13. 16. <ul><li>1930 – Democrats won majority in U.S. House of Representatives – nearly even in Senate </li></ul><ul><li>By 1932, Hoover’s ability to influence the public had disappeared – didn’t even campaign </li></ul>
    14. 17. <ul><li>Vocabulary Quiz </li></ul>