SWBAT: Explain How Hoover Responded To The Crisis Of The .

SWBAT: Explain how Hoover responded to thecrisis of the Great DepressionDo Now:a) Read the text and examine the politicalcartoon and answer the discussion questions.

Republican presidents did not believe in regulation offinancial markets, there was excessive speculation in thestock market. This included allowing people to buy on marginwith little or no cash creating a bubble of a grotesquelyovervalued stock market with price to earnings ratiosthrough the stratosphere that was bound to burst becausereal money was not backing the price of the stock. When thestock market crashed in '29, President Herbert Hoover,instead of learning his lesson about the evils of laissez-faireeconomics from the stock market crash, stood idly by whileHoovervilles and soup kitchens popped up acrossAmerica. While banks closed, Hoover kept preaching that"prosperity was just around the corner."“Economic depression cannot be cured by legislative action or executive pronouncement. Economic woundsmust be healed by the action of the cells of the economic body - the producers and consumers themselves.”(Herbert Hoover – State of the Union Address – 1930)

Hoover’s Response to the Great DepressionHerbert Hoover comes to office as the firstpresident having to deal with the depression. Hoover takes office in March of 1929 and the StockMarket Crashes in October 1929. Hoover was a successful businessman and selfmade millionaire. Hoover had an international reputation as theleader of a successful relief effort to aid starvingEuropeans and to help Europe recovereconomically.

Hoover’s Response to the Great DepressionHoover took office with the belief of ruggedindividualism and that the government should notbecome involved in the national economy or assistcitizens economically. Hoover believed “Prosperity was just around thecorner.” Altered his view that the government should notbecome directly involved in the economy. Trickle Down Theory - He promoted programsthat aided businesses, on the theory that asbusinesses recovered, economic benefits wouldtrickle down to the workers and consumers.

Federal Home Loan Bank Act1. What was the goal of the Federal Home Loan Bank Act?The intent of this system was to increase the supply of money available to localinstitutions that made home loans and to serve them as a reserve creditresource.2. How did the Federal Home Loan Bank Act initially affect theGreat Depression?The rate of foreclosures dropped noticeably after the banks began functioning,but the change came too late for thousands of families.3. Was the Federal Home Loan Bank Act a success or failure?Why?Success – significantly reduced the foreclosure rates and also provided new jobsin the home construction industry.4. Does the Federal Home Loan Bank Act show Hoover taking thenecessary steps to help the American public? Why?Yes – Hoover abandon’s his policy of Rugged Individualism once he realizes thatthe Depression is worse than anyone could have imagined/believed.

Reconstruction Finance Corporation1. What was the goal of the Reconstruction Finance Corporation?Hoover believed that the decline of industry and agriculture could be halted,unemployment reversed and purchasing power restored if the governmentwould shore up banks and railroads2. How did the Reconstruction Finance Corporation initially affectthe Great Depression?Despite some initial success, the Reconstruction Finance Corporation neverhad its intended impact.3. Was the Reconstruction Finance Corporation a success orfailure? Why?Failure – never met its intended goals4. Does the Reconstruction Finance Corporation show Hoovertaking the necessary steps to help the American public? Why?No – Hoover resisted a broad-based expansion of the program, but did allowsome loans to state agencies that sponsored employment-generatingconstruction projects.

Hoover Dam1. Why was the Hoover Dam built? Who would this dam benefit themost?To create a year-round water supply for the most arid region of theSouthwestern United States.2. Why was the Hoover Dam’s name changed to the Boulder Dam?When Hoover lost the presidency to Franklin D. Roosevelt in 1932 becausepeople blamed him for the Great Depression, the dam was officially renamedBoulder Dam in 1933. Congress restored the name Hoover Dam in 1947.3. How did the Hoover Dam initially affect the Great Depression?Provided jobs and economic opportunities for many of the unemployed.4. Was the Hoover Dam a success or failure? Why?Success – provided jobs/economic opportunities – also provided a year roundwater supply for the Southwestern United States

Closing QuestionIs Herbert Hoover to blame for the Great Depression?Why or Why not?

America. While banks closed, Hoover kept preaching that "prosperity was just around the corner." . Federal Home Loan Bank Act 1. What was the goal of the Federal Home Loan Bank Act? 2. How did the Federal Home Loan Bank Act initially affect the Great Depression? 3. Was the Federal