Herbert Hoover

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Herbert Hoover

• The Wall Street Crash and the Great Depression

2
Learning objectives

• What were Hoovers policies and how did these
  affect his approach to dealing with the
  depression
• What measures did Hoover take to help solve the
  consequences of the depression
• Why Hoover became so unpopular
• The role Hoover played in his own defeat

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Herbert Hoover 1928-1932

• Hoover was a REPUBLICAN and was elected into
  power in 1928.
• Hoover talked about how We want a nation of home
  owners and farm ownerswe want to see their
  savings protectedwe want to see them in steady
  jobs.
• Little did he know the Wall Street Crash was just
  around the corner

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Ten months later.

• There had been a previous depression in 1921,
  and, without government interference, the economy
  had recovered.
• Many people including Hoover believed this would
  happen again

• Wall Street collapsed
• America was in the midst of a severe depression
• Millions were unemployed
• Millions of were lost
• Farmers lost their farms

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No help from Hoover?

• Hoover was a Republican who did not approve of
  government interference in the economy.
• He believed in
• This meant the government should not interfere
  in the nations government
• Hoover also believed in
• This was based on the belief that an individual
  should take responsibility for his/her own
  welfare the American way of life would be
  destroyed if the government started paying
  unemployment benefit or tried to create jobs for
  people.

laissez-faire
rugged individualism
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Support for Hoover

• In early 1929 most Americans would have agreed
  with Hoover
• Hoovers business as usual policy began to lose
  popularity as the effects of the Depression
  deepened and it became obvious the economy was
  not going to sort itself out.
• In Hoover we trusted now we are busted became a
  famous slogan in 1932.

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Hoover hard hearted?

• It would be wrong to assume Hoover was
  hard-hearted or that he did not care.
• Hoover made substantial private contributions to
  charity.
• However, he believed strongly that it was not in
  the countrys interest for the government to
  intervene.
• His government did also introduce some measures
  to deal with the Depression.

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Measures taken by Hoover

• 1929
• Called business, farm and union leaders to
  Washington to agree to work together to beat the
  Depression.
• Cut taxes by 160 million and asked Congress to
  give him 423 million to undertake huge public
  works.
• Encouraged Congress to pass the Agricultural
  Marketing Act which set up the Farm Board with a
  budget of 500 million to help farmers.

• 1930
• Agreed to the Hawley Smoot Tariff which increased
  taxes on foreign goods and made them less
  attractive to American buyers.

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Measures taken by Hoover

• 1932
• Signed a bill authorising the RFC to spend 300
  million to provide shelter, clothing and food for
  the unemployed.
• Agreed the Emergency Relief and Construction Act
  which provided 1.5 billion for public works
  schemes.

• 1931
• Set up the Reconstruction Finance Corporation
  (RFC) to help finance companies and banks which
  were in financial difficulties. During 1932 it
  loaned 1,500,000, mostly to banks,

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Success?

• Despite these measures they did very little to
  help those suffering from the most severe effects
  of the Depression.
• It was too little to late for America.
• The Hawley-Smoot Tariff back fired making in more
  difficult for American business to export goods
  abroad.
• The money given to states to provide employment
  was only loaned and had to be repaid in later
  years.

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Bonus Marchers

• In 1932, 25,000 First World War veterans marched
  to Washington to demand their bonus payment of
  500.
• Some marchers set up camps in Washington.
• Hoover responded by calling in the army and
  driving the men out by tear gas and fixed
  bayonets.
• The camp was the burned to the ground.
• The incident made the President even more
  unpopular.

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Your Task

• In 1932 Hoover lost the Presidential election to
  the Democratic candidate Franklin Roosevelt.
  Explain the role Hoover played in his own defeat.
• Using textbooks (Walsh p.216-217/OCR p.158-159)
  make notes on Hoovers opponent, Roosevelt. Why
  was was he a good choice in 1932?