U.S. History
Lesson 5
Hoover Tries to Reassure the Nation
- Hoover said depressions are normal – part of the economic cycle.
- Let the economy fix itself.
A. Hoover’s Philosophy
1. Hoover was an engineer – believed in reason
a) wanted competing groups to cooperate
b) govt. should encourage cooperation, not control it.
2 Hoover opposed welfare
2.
a) wanted people to make it on their own.
B. Hoover Takes Cautious Steps
1. Called in business leaders, bankers, and labor reps. – work together.
a) employers – don’t cut wages or fire employees
b)) workers – don’t g
go on strike
2. His plan failed – unemployment rose.
C. Boulder Dam (Hoover Dam)
1. Hoover wanted to build a dam on CO River
1
River.
2. Finance the project w/ power from the dam,
3. Began const. in 1929
a) world
world’ss tallest dam
b) even provides water for Los Angeles & Las Vegas.
D. Democrats Win in 1930
1.
2.
3.
4
4.
People
l were upset w// Hoover (REP)
(
)
DEM were anti-Hoover
REP lost control of the House of Reps.
DEMS called shantytowns “Hoovervilles”
a) thought he was terrible leader
Hoover Takes Action
A. Hoover Backs Cooperation
1. He felt the Boulder Dam was an example of coop.
2. Continued coop.
p w/ Fed. Farm Board
a) raised prices & controlled crops
B. Direct Intervention
1. People could see that the plan wasn’t
1
wasn t working.
working
2. Hoover asked for the Home Loan Bank Act
a) lowered interest for home owners & farmers
3. Reconstruction Finance Corporation
a) authorized $2 billion for emergency bank financing
- railroads & other businesses
b) people thought it only helped big corporations
Gassing the Bonus Army
- 20,000 veterans of WWI – marched to D.C. - Bonus Army
A. Patman Bill Denied
1. bill authorized a bonus to WWI vets who
were not compensated.
p
a) supposed to get it in 1945 – vets wanted it now!
2. June 17 – Congress voted down the bill.
3. Hoover told them to leave – 2,000 stayed in D.C.
B. Hoover disbands the Bonus Army
1 July 28 – Douglas MacArthur & Dwight D.
1.
D Eisenhower
led 1,000 troops to meet the Bonus Army.
2. gassed them with tear gas.
a) 11 month old baby died
b) a few people were shot and killed
3. An election was coming up.
a) Hoover would have to face Franklin D.
D Roosevelt