Life in the Depression (continued)
In the cities, life was just as devastating. Families moved in together and relied on the one or two family members who could find work to pay for food and rent. People were hungry, and sickness and disease spread. Shanty towns of shacks made out of boxes and boards sprang up to house the homeless. They were called Hoovervilles, named after President Herbert Hoover who didn’t believe that it was the government’s job to help the unemployed and homeless. Instead, he decided to put money into businesses by giving money to banks.
The Reconstruction Finance Corporation (RFC) was established to provide federal loans to businesses. The RFC also put money into local governments to support public works projects but not relief programs. Hoover believed that Americans needed to get back to work but his business stimulation legislation failed. When a group of veterans known as the Bonus Army congregated in front of the White House to ask for their government bonus, Hoover declined, and sent the U.S. Army to move them. The incident ended in an ugly scene; many veterans, their wives and children were among the dead in the group of protesters finally removed by infantry, tanks and cavalry. America was ready for a change.