Hoover's Response to the Depression

1. Hoover Responds
Ch.17 Sec.3

2. Promoting Recovery
• Govt Response
– Hoover pledged that the worst had passed for the
U.S. economy
– Promoted Public works projects by states
– Refused to increase federal govt spending
– Opposed federal govt spending on relief

3. • Reconstruction Finance Corporation
– One of Hoover’s only attempt at federal govt
intervention
– Gave govt loans to banks, railroads, & agricultural
businesses
– The amount of money handed out was too little to
make a difference
• Emergency Relief & Construction Act
– Provided $300 million in loans to states for relief
– Too little too late

4. In an Angry Mood
• Public Response to Hoover
– Open acts of revolt increased as Depression
worsened
– Hunger marches were organized, farmers burned
their crops to raise crop prices, “Hoovervilles” set
up across the country
• Bonus Army
– World War I vets who marched across the country
to petition for their bonus wages

5. In An Angry Mood
• Reaction to Hoover
– Public support for Hoover declined steadily as
1932 election approached
– Failure to create support programs, press
coverage of the Bonus Army violence, and public
anger at govt guaranteed no reelection for Hoover