Great DepressionGreat Depression

Pres. Hoover’s responsePres. Hoover’s response

Pres. HooverPres. Hoover

Oct. 25 (day after Black Thursday)- Oct. 25 (day after Black Thursday)- Hoover stated that:Hoover stated that:

Industry was “on a sound and prosperous Industry was “on a sound and prosperous basis”basis”

Steps taken by HooverSteps taken by Hoover*don’t write**don’t write*

1. Attempted to get factories to stay open & 1. Attempted to get factories to stay open & stop slashing wages (business leaders stop slashing wages (business leaders then abandoned this)then abandoned this)

2. Increase public works (govt. financed 2. Increase public works (govt. financed building projects)- the effort made up for building projects)- the effort made up for only a small fraction of the jobs lost in the only a small fraction of the jobs lost in the private sectorprivate sector

3. Refused to increase govt. spending3. Refused to increase govt. spending

Steps continued…Steps continued… *don’t write* *don’t write*

4. Set up the NCC (National Credit Corporation)- 4. Set up the NCC (National Credit Corporation)- created a pool of money to enable troubled created a pool of money to enable troubled banks to continue lending money in their banks to continue lending money in their communities (did not meet the nation’s needs)communities (did not meet the nation’s needs)

5. Asked Congress to set up the RFC 5. Asked Congress to set up the RFC (Reconstruction Finance Corporation) make (Reconstruction Finance Corporation) make loans to banks, railroads, & agricultural loans to banks, railroads, & agricultural institutions (was overly cautious & failed to institutions (was overly cautious & failed to increase its loans in sufficient amounts to meet increase its loans in sufficient amounts to meet the need)the need)

Steps continued…Steps continued… *don’t write* *don’t write*

6. Strongly opposed the federal govt.’s 6. Strongly opposed the federal govt.’s participation in relief (money that went directly to participation in relief (money that went directly to impoverished families). He believed that only impoverished families). He believed that only state & city govt.’s should dole out relief.state & city govt.’s should dole out relief.

7. Congress passed the Emergency Relief & 7. Congress passed the Emergency Relief & Construction Act ($1.5 mil. for public works & Construction Act ($1.5 mil. for public works & $300 mil. for direct relief)—by the time Hoover $300 mil. for direct relief)—by the time Hoover reluctantly signed it, it was too late.reluctantly signed it, it was too late.

Beliefs of HooverBeliefs of Hoover

1.1. Believed that people should help Believed that people should help themselves (vetoed a bill that would have themselves (vetoed a bill that would have given direct aid to the unemployed & given direct aid to the unemployed & given the govt. the ability to produce & given the govt. the ability to produce & sell electricity)sell electricity)

2.2. Offered to help banks & businesses in Offered to help banks & businesses in hopes that the effect would hopes that the effect would trickle downtrickle down to relieve unemployment at the bottomto relieve unemployment at the bottom

Bonus ArmyBonus Army 1932- a group of WWI 1932- a group of WWI

veterans marched on veterans marched on Washington to demand Washington to demand payment of the bonus payment of the bonus Congress promised Congress promised them in 1945them in 1945 Hoover sent out the Hoover sent out the

army to drive the army to drive the protesters away & that protesters away & that made him even more made him even more unpopular w/ Americansunpopular w/ Americans

StatisticsStatistics 1930- 4 million workers 1930- 4 million workers

unemployedunemployed 1932- over 30,000 1932- over 30,000

companies had closedcompanies had closed 1933- more than 12 mil. 1933- more than 12 mil.

UnemployedUnemployed 1933- 9,000 banks had failed1933- 9,000 banks had failed 1933- wages for workers cut 1933- wages for workers cut

by over 60%by over 60% 1936- avg. family income 1936- avg. family income

dropped from $2,300 to dropped from $2,300 to $1,600$1,600

Hooverville- houses Hooverville- houses created from cardboard, created from cardboard, tin, etc.tin, etc.

Hoover stew- soup/stew Hoover stew- soup/stew received at soup kitchenreceived at soup kitchen

Dust BowlDust Bowl

Due to drop in crop Due to drop in crop prices, fields left prices, fields left uncultivated, & then a uncultivated, & then a drought struckdrought struck

Soil dried to dust & Soil dried to dust & winds blew the dust for winds blew the dust for hundreds of mileshundreds of miles

Many farming families Many farming families packed up & migrated packed up & migrated to California from to California from Oklahoma (“Okies”)Oklahoma (“Okies”)

HoboesHoboes Many forced off farms Many forced off farms

heard about work heard about work hundreds of miles away hundreds of miles away (hopped trains illegally to (hopped trains illegally to get there)get there)

Approx. 2 mil. men, 8,000 Approx. 2 mil. men, 8,000 womenwomen

Used symbols to Used symbols to communicate w/ other communicate w/ other hoboeshoboes

CultureCulture

Movies- 60-90 mil. went weekly to escape their Movies- 60-90 mil. went weekly to escape their problemsproblems

Radio- The Lone Ranger & Tonto, soap operas- Radio- The Lone Ranger & Tonto, soap operas- The Guiding LightThe Guiding Light

Literature- Steinbeck’s Literature- Steinbeck’s The Grapes of WrathThe Grapes of Wrath, , Faulkner’s Faulkner’s The Sound and the FuryThe Sound and the Fury

Stars- Marlene Dietrich, Greta Garbo, Walt Stars- Marlene Dietrich, Greta Garbo, Walt DisneyDisney

Movies- Snow White, The Wizard of Oz, Mr. Movies- Snow White, The Wizard of Oz, Mr. Smith Goes to Washington, Gone with the WindSmith Goes to Washington, Gone with the Wind