Great Depression: President Hoover Responds

Welcome back if you remember from last time we were talking about the causes of the great depression today we’re going to be looking at the government’s response in particularly president herbert hoover so herbert hoover who takes office in 1929 after calvin coolidge decides not to run again is another republican and he decides to really stick behind the republican

Values of laissez-faire when first confronted with what we labeled last time as a downward spiral remember those causes the stock market crash the bank failure overproduction and under-consumption unemployment starting to really escalate he tries to limit the government’s involvement in the business crisis and he assurance prosperity is around the corner and he

Says mutual self-help through voluntary giving meaning rely on your churches rely on all your humanitarian organizations don’t rely on the government to be the one to help you and he does so by promoting what he calls rugged individualism and keeping with that idea to try to fix the nation’s issue especially in response to the great depression congress proposes

The hawley-smoot tariff and this tariff was on imported goods meant to protect industry and agriculture europe responds in turn by raising their tariffs on american goods and a result as and as a result america’s farmers and businessmen were unable to sell their excess goods to other countries and this is where international trade grinds to a halt and that’s true

But if you were to look up the hawley-smoot tariff it would come up as the smoot-hawley tariff for some reason we see in the new york state regions hawley-smoot tariff so it’s just playing with the two guys names there but it does trade will grind to a halt and many people will try to ask hoover please don’t sign this into law veto it veto economists said this

See also  How to Use Whole Life Insurance to Pay For College

Will not be a good thing they predicted that trade would grind to a halt and guess what it did even though hoover signed it into law he chose not to veto it and if you take a look at this graph world trade it will steeply decline and this will send the world into more of a depression rather than just the united states itself so hoover notices that laissez-faire

Economics is not helping out the american public and that the great depression is not getting better it’s getting worse so in turn he proposes the reconstruction finance corporation known as the rfc which loan money to banks railroads and insurance companies to save businesses and jobs it was around two hundred and thirty eight million dollars to all of these

Different areas and he hoped the loans would stimulate the economy and companies would begin hiring individuals and creating more jobs prosperity then would trickle down throughout the economy it would eventually reach the average person so let’s explore this economic theory of trickle-down economics a little bit further see the idea is the rfc in this situation

Would give loans to businesses who would then invest more in their business than hiring more workers who would then have money to spend and would then buy more goods and that would hopefully pick the economy back up but for hoover it was a little bit too late in the game and it didn’t necessarily help things hoover also attempted to jumpstart the economy through

Creating more opportunities for people to get jobs and work and he did this through public works where the federal government would sponsor projects such as the hoover dam where people would work in earn a paycheck and hopefully pay off some of those loans however too little too late in mr. vaillancourt set so even though hoover eventually comes around to the idea

See also  FPA KwikPen demo

Of government intervention in the depression to try to stimulate the economy we said over and over again now too little too late the american public was suffering the unemployment was extremely high by 1933 it will reach 25 percent and as a result of people losing their jobs you’ll see a lot of people starting to lose their homes as well so you will see shanty

Towns or villages of shacks sprout up all around the country where homeless people lived and they will gain the nickname hoovervilles and they will sleep underneath hoover blankets which are old newspapers and this all shows an interesting phenomenon it shows who they are attributing blame to for where they are in life for the fact that they’re homeless for the

Fact that the depression is getting worse by nicknaming all these things after president hoover they’re placing some blame in his lap as president hoover’s first term is coming to a close there is one group that really stayed is a dramatic outcry against the government’s handling of this great depression the veterans of world war one had been promised after world

War one in 1924 of 1,000 dollar bonuses which they could redeem and cash in on in 1945 however would the economic crisis that’s going on the great depression these veterans among other people were feeling the strain financially so they begin looking to put some pressure on washington to get these bonuses or get some money coming their way they’re not really making

See also  Math Antics - Finding A Percent Of A Number

Any headway send what we’ll see is the what will be termed as the bonus army will march down to washington and they will for lack of a better turn term occupy washington if you will much if we take a look at the occupy moving going on today but they had already been promised this from the government so they’ll show up to sort of demand their bonuses and it’s not

Met very well from the senate or president hoover who opted not to pay them early and force them to leave washington dc this will create horrible press for president hoover who is about to head into a reelection campaign if you take a look at the pictures you’ll see the sheer number of veterans who had made their way to washington dc sprouting up their own

Shantytowns or hoovervilles if you will in front of the capitol as well and then lastly you’ll see the destruction of those shanty towns at the hands of the governments this was this instance or this issue this occurrence was covered nationwide and veterans who were under assault there were pictures and videos posted everywhere and this like mr. vaile court

Said haunted president hoover throughout his re-election campaign in 1932 and in this election of 1932 president hoover is going to face a formidable opponents with a well established last name in franklin delano roosevelt’s a charismatic democrat from new york who pledges to the american people a new deal it will be an uphill battle for hoover heading into the

Re-election cycle we will see will he get reelected or will america have a new president but that won’t be until next time bye-bye

Transcribed from video
Great Depression: President Hoover Responds By MrVEducation