Trump echoes Herbert Hoover, who vetoed a Great Depression rescue package in an electio... - 0 views
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It was mid-July of 1932 in the depths of the Great Depression. Congress was pressing for a $2.1 billion emergency relief bill to fight staggering unemployment of more than 12 million Americans.
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The frantic response mirrored current efforts to rescue the U.S. economy from the damage inflicted by the coronavirus pandemic. In late March, Congress passed a $2 trillion economic stimulus bill signed by President Trump. Now, with 17 million Americans out of work, lawmakers and the White House are wrangling over another huge aid package to try to keep unemployment rates from rising toward Depression-era levels.
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The 1932 bill’s inflation-adjusted price tag of $38 billion was dwarfed by this year’s $2 trillion price tag, but it was “gigantic” in its day. President Herbert Hoover, like Trump a Republican, had resisted federal spending, but this was an election year.
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On July 8, the Dow Jones industrial average had plummeted to 41.22, down nearly 90 percent from its peak before the market crashed on Black Monday in October of 1929. Many of the homeless were living in shacks in “Hoovervilles.”
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During his nearly four years in office, Hoover had focused on trying to balance the budget. But as the jobless rate rose to a record 23.6 percent in 1932, he proposed a $1.8 billion relief package
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The foundation of both plans was $1 billion to expand loans by the government’s Reconstruction Finance Corporation. But the Garner-Wagner bill also called for up to $1.2 billion for public works to create jobs.
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To Hoover this was spending money for “pork” and “unproductive” jobs. Republican Rep. Fiorello La Guardia, the future mayor of New York, shot back that the legislation was a “breadbasket bill” and represented “the first ray of hope that has been cast in a critical situation.”
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By early July, it was clear that the House-Senate conference bill was doomed. “Weary leaders looked to the veto message already penned and waiting at the White House as marking the end of the long and bitter controversy over federal aid to the jobless,” the AP reported.On July 11, Congress sent its bill to Hoover. Sure enough, the next day Hoover vetoed the bill, saying it would “bring far more distress than it will cure.” It was a phrase similar to Trump’s declaration last month that “we cannot let the cure be worse than the problem itself" as he considered urging Americans to end their coronavirus quarantines.
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“In a night session which was astonishing for the swift and decisive action of its nonpartisan coalition,” the Senate passed a revised bill and sent it to the House, the AP reported. There, what was now called “the Hoover bill” passed by a vote of 296 to 46. When the final conference bill came back to the House, members passed it by unanimous consent. Only one lawmaker gave a speech, and he was nearly drowned out by cries of “Vote, vote!”
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“Mr. Hoover was an engineer. He knew that water trickles down. … But he didn’t know that money trickled up. Give it to the people at the bottom and the people at the top will have it before night, anyhow. But it will at least have passed through the poor fellows’ hands. They saved the big banks, but the little ones went up the flue.”