How did Hoover deal with the Depression?
Many people blamed President Hoover for the Depression, he had been elected in 1928 on the promise that prosperity would continue. The farmers in Iowa protested under the slogan, ‘In Hoover we trusted, in Hoover we busted’. Hoovervilles were another sign of his unpopularity. Hoover believed in laissez-faire (the government should not interfere in the economy) and ‘rugged individualism’ (people should work hard for themselves and help themselves). Hoover believed that the Depression would end itself without any government interference, he promised ‘Prosperity is just around the corner’. Therefore it was some time before Hoover took any action. • He set up the Reconstruction Finance Corporation (1932), which lent money to banks, industries and agriculture. • He tried to boost American exports. • Taxes cut by $130 million to give people more spending power • Job creation schemes such as the building of the Hoover Dam (1931) • The Emergency Relief and Reconstruction Act(1932) gave money to
