22.3 Hoover Struggles with the Depression

22.3 Hoover Struggles with the Depression

•Hoover’s belief in the “rugged individual” leads his team to react slowly to crisis•Saw it as a temporary and necessary downswing•Opposed direct relief, felt intervention by federal government would destroy free enterprise•Resentment towards Hoover and Republicans grows daily•1930 mid-term elections, Democrats take control of House

Attempts at Helping

• Programs started by Hoover:– Public Works Projects (Hoover Dam)– Federal Farm Board-control prices– Glass Steagall Banking Act (FDIC)-protects banks– Federal Home Loan Bank Act-keep people in homes– Reconstruction Finance Corporation (trickle-down

economics)

Hoover and Bonus Army

• Group of WWI vets led by Waters march to DC to get $1,000 bonus• Hoover allowed them to create Hooverville

while issue was debated• Senate and Hoover deny money and say go home• About 2,000-5,000 stayed• Police shot 2 vets• Army tear gassed families, 2 babies die

• Hoover’s reluctance to act and gassing of Bonus Army costs him any chance of re-election