Caused by Roosevelt, blamed on Hoover
Notice the direct cause and effect of Roosevelt's actions, but what is the shanty town called? Yes, not RooseveltTown or Franklinville, but Hooverville. Notice who the Liberal went after first? Those who had served and earned pension. The embarassing and sad part of this was Patton and McArthur were complicit in the disgusting action against the veterans which followed. Arguably, this first act by Roosevelt, a betrayal of those who had served the country in war, was the cornerstone which turned the Recession into the Great Depression which followed.
On March 10, 1933, six days after his inauguration, Roosevelt submitted legislation to Congress which would cut $500 million ($8.181 billion in 2009 dollars) from the $3.6 billion federal budget by eliminating government agencies, reducing the pay of civilian and military federal workers (including members of Congress), and slashing veterans' benefits by 50 percent. Veterans benefits constituted a quarter of the federal budget at the time. The Act was written primarily by Lewis Douglas, Roosevelt's Director of the Budget, and Grenville Clark, a private attorney.
The Act faced stiff opposition in the Congress. On June 17, 1932, the Bonus Army (about 17,000 World War I veterans and 26,000 of their family members and affiliated groups) had established a Hooverville shanty town on the Anacostia Flats area of Washington, D.C.