Hoover Struggles with
Depression
Chapter 14,
sect 2
President Herbert Hoover tries to solve the
economic problems
1. Favors conservative
philosophy:
– Believed in “rugged
individualism”
– Argued = federal aid to the
needy would alter the
character of the poor and create a
population of listless (lazy) people living on welfare.
– Solution = increase business
prosperity (wealth, success), which will create
jobs instead of govt interference in the economy.
2. Hoover Takes Action - to
promote business prosperity
a.
Reconstruction Finance
Corporation (RFC) = provided
loans to key industries (banks,
insurance, RR)
•
b.
problem = under-consumption
Federal Home Loan Bank
Act – lowered mortgage rates
for homeowners and farmers
to avoid foreclosures.
c. Increased govt public works
programs – build roads, dams to create jobs for
the unemployed
3.
Hoover strongly
committed to
maintaining a balanced
budget
–
Unwilling to spend too much federal money
–
Relief to the poor =
private charities and
state and local agencies.
–
Result = by 1932,
agencies did not
have enough money
to help all the needy.
Bonus Army = Page 482
Cornell Column
As you read pg482, answer the following questions
in the notes section regarding the Bonus Army.
1. Bonus Army
1. Who was the Bonus Army?
2. Patmen Bill
2. What was the Patmen Bill?
3. Hoover’s
respond?
3. How did Hoover respond to the “marchers”?
4. Take-A-Stand
4. Hoover was correct to reject bill, why?
(strongly agree, agree, disagree, strongly disagree)
5. Hoover tries to encourage
public confidence
–
blamed the “natural
business cycle”
6. Election of 1932 = Franklin
D. Roosevelt wins
Hoover video = 5 min