15-3+USH

Abby Regan 5/3/12 USHCP Mr. Masterson

Key Terms: Rugged Individualism: Belief that success comes through individual effort and private enterprise. Reconstruction Finance Corporation (RFC): Agency created in 1932 to stimulate the economy by lending money to railroads, insurance companies, banks, and other financial institutions. Bonus Army: Group of WWI veterans who marched on Washington DC, in 1932 to demand their pension bonuses.

Key People: Andrew Mellon: The Secretary of Treasury who wanted the government to leave the economy alone. Franklin D. Roosevelt: 32nd president of the US, who ran against Hoover in the presidential election in the Great Depression. Eleanor Roosevelt: The first lady, who influenced her husband greatly.

Summary:

Hoovers Philosophy
 * Americans looked to President Hoover for help during the Great Depression, but he continued to be optimistic and insist that it was temporary.
 * Before the crash, most people believed that the government should not interfere with the free enterprise system, and the government still saw it that way.

Opposing Direct Relief
 * Many Americans demanded that the government provide basic resources for those who needed them.
 * Hoover didn't like the idea because he thought it would inflate the federal budget and and decrease the dignity of those getting help.
 * Some people in congress responded by attempting to create a Federal Emergency Relief Board, but Hoover refused to support it.
 * Hoover thought this would be a character building experience for America, and he stayed true to his beliefs regarding individualism.
 * Hoover believed in rugged individualism, and also that local charities could provide the best support.

Encouraging Volunteerism
 * At first, many Americans agreed with Hoover that voluntary efforts were better, but it soon became clear that these charities couldn't run without support.
 * In 1930 Hoover created the President's Committee for Unemployment Relief, which was to help with state and local relief efforts.
 * The committee didn't do a good job at encouraging donations, because they barely had any funding.

Boosting The Economy
 * Hoover wasn't totally against getting the government involved, but still opposed direct relief.

Stimulating the Economy
 * Despite Andrew Mellon's advice, Hoover believed that something should be done to stimulate the economy.
 * Hoover called a white house meeting to discuss solutions to the crisis.
 * Hoover got leaders to maintain predepression levels of production, employment, and wages.
 * Hoover tried to get the public to remain optimistic through cheery public statements, which didn't work.
 * Hoover also got Congress and state governments to fund some public work programs in order to reduce unemployment, which usually involved some type of construction, like the Hoover Dam.

Coping with the Farm Crisis
 * In 1929 Congress passed the Agricultural Marketing Act, which started the Federal Farm Board, who's purpose it was to offer loans, finance cooperatives, and find ways for farmers to help themselves.
 * There were still too many crops at too low of a price, so the FFB was to buy the extra crops and sell them when prices were higher, but it didn't work.
 * Although he wouldn't directly aid farmers, he did recommend the Home Loan Banking Act in 1932, which started the Home Loan Bank Board, which gave money to saving banks, building, loan associations, and insurance companies.
 * Hoover thought this this idea would decrease the amount of foreclosures, which would let people keep their land, and therefore encourage home construction.

The Reconstruction Finance Corporation
 * Although the RFC loans helped many large corporations avoid going out of business, the economy was still bad because the RFC wasn't created until the Depression got really bad.
 * Critics were against the RFC's approach because the money loaned to the businesses wouldn't filter down quickly enough to help those in need.

Government Activism
 * Although Hoover's policies didn't end the Great Depression, they changed government policy so that more believed that the government should help the economy in times of crisis.
 * As the Depression got worse, the government became more and more involved in the economy.

Rumblings of Discontent
 * President Hoover was America's most hated man, yet he refused to change his policies.

Radical Protests
 * There were many protests against the political policies, and they grew more severe as Hoover became more hated.
 * The Communist Party helped to uncover racial injustice.
 * Because Americans were desperate, they listened to and participated in whatever the Communist and Socialist Parties had to offer.
 * Some activism was completely spontaneous, such as when farmers blocked roads to keep food from going to the market.

The Bonus Army
 * The biggest protest happened in 1932 when over 10,000 WWI veterans came to Washington DC to support a veteran's bonus bill.
 * Officials allowed veterans to camp out in empty government buildings and outside, but when Congress rejected the bill, they had to leave, and when they protested, they sent an army to scatter them.
 * Many found the brutal treatment of the veterans surprising, and anger against Hoover grew immensely.

The Election of 1932
 * The Republicans renominated Hoover to be their candidate for president, since all others were scared to run, and the Democrats saw victory in their sights.

The Democratic Challenger
 * Roosevelt, a skillful politician, was born into a wealthy family and could have become a banker or something like that, but he chose a career in public service.
 * His influences included his wife and his cousin, Theodore Roosevelt.
 * Roosevelt ran for vice president in 1920, and with the help of his wife, got his career back on track after he had polio, and was spoken of highly of for his "imaginative relief programs".

A Change in Leadership
 * Roosevelt's strategy was to attack Hoover's record and promising a more equal distribution of wealth, and to remain optimistic and confident.
 * Roosevelt won the presidential election by a long shot, and knew that his programs would get lots of congressional and public support.
 * Most Americans blamed the Republicans for the Great Depression, and others saw Roosevelt as a hero that could get them out of the depression.