Hoover’s Response to the Great Depression

Hoover’s Philosophy

Hoover did not believe that the government should become directly involved in helping this “business crisis”.

It was up to the businesses to end this downslide.

Hoover’s Response

At first, Hoover opposed government relief programs

Hoover called upon private charities, soup kitchens, aid societies and churches to help the needy.

Hoover’s Response

• Hoover urged business leaders to keep workers employed and to maintain wages.

Trickle Down Theory:

An economic theory when the government helps companies, the companies will then maintain production or increase production, thereby people will maintain their jobs or companies will hire more people and/or raise salaries. The people, in turn, will have more money to spend in the economy.

Public Works Program

This program worked in two ways:

1. it created jobs

2. created projects to

benefit the public

ex: schools

damspaved

roads

Reconstruction Finance Corporation

This government program loaned money to banks, railroads, and insurance companies with hopes to save thousands of jobs.

The Bonus Army

20,000 jobless veterans of WWI

Congress promised them a cash bonus to be paid in 1945

1932, jobless veterans camped out in Washington D.C. hoping to get their bonus early

Hoover used force to remove them and denied their early bonus

Damaged Hoover’s image.

Bonus March