25.2 President Hoover’s Response

President Hoover's response to the Great Depression was shaped by his belief in limited government intervention and individualism. He favored voluntary cooperation between government and businesses, opposed direct federal relief, and implemented policies like the Smoot-Hawley Tariff Act and Reconstruction Finance Corporation.

Despite some public works initiatives, Hoover's approach was widely seen as inadequate. Major protests like the Bonus Army March and Farmers' Holiday Association demonstrations highlighted growing public discontent. Hoover's perceived inaction and failure to address the crisis effectively led to widespread disillusionment and his defeat in 1932.

President Hoover's Response to the Great Depression

Hoover's Depression response strategies

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Top images from around the web for Hoover's Depression response strategies

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  Assessing the Hoover Years on the Eve of the New Deal | US History II (OS Collection) View original

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  President Hoover’s Response | United States History II View original

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• 

  Herbert Hoover and the Politics of the Depression | US History II (American Yawp) View original

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  Assessing the Hoover Years on the Eve of the New Deal | US History II (OS Collection) View original

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  President Hoover’s Response | United States History II View original

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• Hoover's response guided by belief in limited government intervention and individualism (rugged individualism)
  • Encouraged voluntary cooperation between government and businesses rather than direct federal control
  • Believed local and state relief efforts more effective than federal aid in addressing economic hardship
  • Opposed direct federal relief to individuals viewing it as a threat to capitalism and individual initiative by fostering dependence
• Signed Smoot-Hawley Tariff Act (1930) raising tariffs on imported goods
  • Intended to protect American businesses and encourage domestic production and consumption
  • Ultimately led to retaliatory tariffs from other countries (Canada, Europe) and a decline in international trade worsening the global economic downturn
• Established President's Emergency Committee for Employment (PECE) in 1930
  • Encouraged state and local governments to create public works projects (road construction, infrastructure improvements) to stimulate employment
  • Had limited success due to insufficient funding and scale to address the magnitude of the crisis
• Signed Reconstruction Finance Corporation (RFC) Act in 1932
  • Provided government loans to banks, railroads, and other businesses to stabilize the financial system and prevent further economic collapse
  • Criticized by some as "trickle-down economics" favoring big business over struggling individuals and small businesses

Economic philosophy and public works

• Hoover's adherence to laissez-faire economics influenced his approach to the crisis
• Despite his reluctance for direct intervention, Hoover did support some public works projects
  • The Herbert Hoover Dam, a massive infrastructure project, was initiated during his presidency to create jobs and stimulate the economy

Major protests of Great Depression

• Bonus Army March (1932)
  • World War I veterans marched on Washington, D.C. demanding early payment of their service bonuses promised for 1945
  • Triggered by economic hardship and unemployment faced by veterans during the Depression
  • Hoover ordered U.S. Army to disperse protesters resulting in violence and public outcry further damaging his reputation and support
• Farmers' Holiday Association protests (1932)
  • Farmers in Midwest (Iowa, Nebraska) organized strikes and blockades to protest low crop prices and farm foreclosures
  • Triggered by agricultural crisis and government's perceived lack of support for farmers struggling with debt and poverty
  • Some protests turned violent with clashes between farmers and law enforcement
  • Highlighted severity of rural economic crisis and growing discontent with Hoover's policies seen as favoring urban interests

Public disillusionment with Hoover

• Perceived inaction and lack of empathy
  • Many Americans felt Hoover not doing enough to address crisis and alleviate suffering
  • Opposition to direct federal relief made him appear uncaring and out of touch with struggles of ordinary citizens facing unemployment and poverty
• Failure to effectively address causes and consequences of Depression
  • Policies like Smoot-Hawley Tariff and RFC seen as ineffective or favoring big business over individuals
  • Economy continued to deteriorate despite efforts with unemployment rising and banks failing
    • Unemployment rate reached 25% by 1933
    • Over 5,000 bank failures occurred during Hoover's presidency
• Contrast with Franklin D. Roosevelt's campaign promises and "New Deal" vision
  • Roosevelt's campaign offered message of hope and promised bold action to address crisis
  • "New Deal" platform with greater government intervention and direct relief (work programs, social security) appealed to Americans who felt Hoover's approach insufficient
• Symbolic events and public perception
  • Bonus Army incident and other protests further eroded Hoover's public image and support
  • Hoover became symbol of government's failure to effectively respond to Depression leading to widespread disillusionment with his leadership and landslide defeat in 1932 election