Ch. 22.3: Hoover Struggles with the Depression

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Ch. 22.3 Hoover Struggles with the Depression

• OBJECTIVE
• Identify the Hoover Administrations Response to
  the Depression.

2
QUIZ

1. What is the name of Hoovers most famous public
   work project?
2. Who did Hoover order the army to attack in 1932?
3. Hoover authorized the Federal _____ Loan Bank
   Act.
4. Hoover authorized the _______ Finance
   Corporation.
5. Which political party won the 1932 Congressional
   elections?

3
QUIZ

1. What is the popular name of the Boulder Dam?
2. Who did Hoover order the army to attack in 1932?
3. Hoover authorized the Federal Home Loan _____
   Act.
4. Hoover authorized the Reconstruction ______
   Corporation.
5. Which political party won the 1930 Congressional
   elections?

4

1. Cash payments or food provided by the government.
2. The great ecological crisis during the Great
   Depression.
3. Places where food was offered free to the needy
   during the Great Depression.
4. Lines of people waiting to receive free food and
   aid during the Great Depression.
5. Name for towns built by the homeless and
   dispossessed during the Great Depression.
6. Percentage of unemployment in the minority
   community during the Great Depression.

5
Hoovers Philosophy

• Depressions were normal, healthy part of business
  cycle
• Depression will correct itself
• Belief in rugged Individualism and voluntary
  action
• Government should do as little as possible

No Direct Relief
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PROBLEM Depression does not fix itself

• Hoover asks businesses to voluntarily hold wages
  and employment
• Economy continues to collapse
• Democrats win 1930 Congressional Elections
• Farmers rioting destroying crops
• Starvation Homelessness haunts US

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Hoover Acts Too Little, Too Late

• Authorizes 800 Million for public works projects
  to build dams, bridges, roads
• 1932Reconstruction Finance Corp. (RFC) 2 Billion
  to Companies to encourage expansion
• 1933 Federal Home Loan Bank Act
• Lower mortgage rates, refinance loans
• CRITICISM
• This aid goes to big companies and banks, does
  not trickle down to average citizens

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Construction of a Dam by William Gropper
Hoover does direct some government aid to major
construction projects, such as the Boulder Dam
(now called Hoover Dam)
Construction of a Dam by William Gropper .
(Smithsonian American Art Museum,Washington,D.C.
Art Resource, NY)
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Gassing of Bonus Army

• IMPACT?
• Hoovers popularity falls lower.
• Helps FDR win in 1932.

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Bonus Army marches on Washington, DC 1932

• http//www.youtube.com/watch?vdWvCCxOUsM8

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EVALUATION OF HOOVER
HOOVERS RESPONSE RESULT
No Direct Relief
Reconstruction Finance Corporation
Home Loan Bank Act
Boulder Dam
Gassing of Bonus Army