Hoover initially thought the Depression was a minor recession and opposed direct relief efforts. His remedies included meeting with businessmen to maintain wages and prices, asking the Federal Reserve to make borrowing easier, and asking Congress to cut taxes. However, his policies provided little aid to lower and middle income groups. Hoover's popularity plummeted as economic indicators continued to decline. By 1932, events like the Bonus Army march damaged Hoover's reputation and he was defeated by Franklin Roosevelt.

2. • Little vision when it
came to the
Depression.
• Thought it a minor
recession.
• Opposed direct relief
• Called for “rugged
individualism”

3. • What we will analyze today is the
• “Hoover Remedies”
• Three phases
•Phase One: 1929-1930
•Phase Two: 1930-1931
•Phase Three: 1931-1932

4. • Meetings with influential businessmen
•Maintain employment, wages, prices
• Asked Fed. Reserve to make it easier
to borrow $$
• Asked Congress to cut taxes
•People spend more

5. • Consequences:
• Little aid for lower
& middle income
groups
• HH’s popularity
plummeted
• During war, name
synonymous with
patriotism; during
Depression,
distress
• Hoovervilles

6. • Bound to conservative
philosophy keep
government small;
shift blame to Europe.
• As economic
indicators rose in
1931, Austria’s larges
bank failed triggers
panic. Issues a one
year moratorium.

7. • Hawley-Smoot Tariff
(1930): directly tied to
the question of
reparations and war
debts
• Emergency Committee
for Employment (Oct.
1930) under command
of Arthur Woods to
create jobs
Rep. Willis C. Hawley and
Senator Reed Smoot
1929

8. • Hoover’s efforts
include what he called
the “Drip-o-lator”
Method: Trickle down
economics.
• This conservative
notion is much
maligned by liberals
as the following
images indicate.

10. • Hoover’s efforts
include what he called
the “Drip-o-lator”
Method: Trickle down
economics.
• Home Loan Banks
• Reconstruction
Finance Corporation
(RFC)

11. • Too little, too late.
• Rise in Communism
• The Bonus
Expeditionary Force
From Click Magazine,
1930

12. • Too little, too late.
• Rise in Communism
• The Bonus
Expeditionary Force
From Click Magazine,
1930

13. • In the end, the Bonus
March seals Hoover’s
fate.
• He will be defeated by
Franklin Delano
Roosevelt in 1932
marking the next
phase of the Great
Depression.