Summary
Highlights
During the Great Depression, cities saw a rise in homelessness and shantytowns, known as Hoovervilles, which were makeshift structures built from scavenged materials. Soup kitchens and bread lines, including the very first soup kitchen built by Al Capone, emerged to feed the hungry. African Americans and Latinos faced significantly higher unemployment rates (around 50%) and lower wages compared to the general population (25% unemployment).
In rural areas, farmers lost their land and became tenant farmers or migrant workers, often referred to as 'Okies'. The Dust Bowl, a severe environmental catastrophe from the 1930s, worsened conditions in the Great Plains. Caused by drought, over-farming, and the removal of prairie grasses, strong winds swept away topsoil, creating massive dust storms that spread across the country, reaching as far as the Atlantic coast. This disaster led 60% of the population in affected areas to migrate west, particularly to California.
President Hoover's response to the Depression was largely criticized for being inadequate. He believed the economy would naturally recover (laissez-faire) and advocated for 'rugged individualism,' arguing that federal direct relief would damage the moral fiber of the country and create government dependency. He felt charities, not the government, should assist the poor. In hindsight, critics suggest he could have increased the money supply, vetoed the Smoot-Hawley Tariff, gone off the gold standard, and avoided raising taxes to help the economy.
Despite criticisms, Hoover did implement some measures. He passed the Agricultural Marketing Act to stabilize demand for farm goods and the Federal Home Loan Bank Act to lower mortgage rates, allowing some farmers to refinance loans. His most significant program was the Reconstruction Finance Corporation (RFC), which provided emergency financing to businesses with the hope that this assistance would 'trickle down' to workers through higher wages and, ultimately, to the poor. However, these programs were deemed too little, too late, and had a negligible impact.
The Bonus Army incident severely damaged Hoover's presidency. World War I veterans, promised cash bonuses and life insurance payments by 1945, marched on Washington D.C. in 1932 to support the Patman bill, which aimed for immediate payment due to the Depression. They set up a 'Hooverville' near the White House. After the bill failed, Hoover ordered the veterans to disperse. When about 2,000 remained, he labeled them communists and sent in the army, led by General Douglas MacArthur and Dwight Eisenhower. The army gassed the veterans and burned their shanties. This brutal action, captured by newspapers across the country, resulted in injuries and even the death of a baby, creating a massive public outcry and solidifying Hoover's unpopularity, ensuring FDR's victory in the upcoming election.