Hoover's response to the Depression Flashcards
When was Hoover managing the economy
1929 to 33
Who was Hoover and what were the expectations of him as president during the Great Depression?
Hoover was a self-made engineer who was elected as Republican president. He had high expectations as he was Secretary of Commerce during the booming 20s.
What did Hoover believe about people’s responsibility for their own welfare?
Hoover believed that people were responsible for their own welfare and did not believe that the government could solve people’s problems.
What did Hoover do to help during the Depression?
Hoover gave generously to charity during the Depression, but this was overshadowed by his optimistic public appearances. Many thought he was out of touch with reality.
What was the Agriculture Marketing Act of 1929 and why did it fail?
The Agriculture Marketing Act of 1929 established the Federal Farm Board with a $500 million fund to dispose of farm surplus, but it had no power to order reductions. The policy failed because paying farmers artificially high prices for surplus couldn’t continue long-term, and it treated agriculture as a domestic issue without considering foreign agriculture. Without high tariffs, there was little point in keeping American prices artificially high.
What was the Smoot-Hawley Tariff and what were its effects?
The Smoot-Hawley Tariff was the highest tariff in American history, with an average duty of 40%. It led to most Europeans abandoning free trade and even fewer American goods being exported. There was no advantage to farmer’s surplus, and in 1931, the value of international trade fell by $1.2 billion. US imports fell to $390 million in 1932, and exports to $784 million in 1932.
When was the Smoot Tawley Tariff
1930
How did the government attempt to provide relief for unemployment during the Great Depression?
In 1932, unemployment was at 24.1%, and relief agencies and charities could no longer cope with demand. Hoover secured $500 million in 1932 to help agencies, but it was inadequate to meet the scale. The President’s Emergency Committee was set up to help agencies organize their efforts but couldn’t support direct federal relief. The government argued that it destroyed self-help and created a class of people dependent on hand-outs.
What is the Reconstruction Finance Corporation (RFC)?
The RFC was established in January 1932 to lend up to $2 billion to rescue banks and other institutions in need.
What did the 1932 Emergency Relief and Construction Act authorize the RFC to do?
The act authorized the RFC to lend up to $1.5 billion to states to finance public works, creating temporary employment in local areas.
What were the conditions for states receiving loans from the RFC for public works?
States had to declare bankruptcy, and the work created would produce revenue to eventually pay off the loan, making it inaccessible to many.
What was the purpose of the veteran’s “bonus” agreed upon by Congress in 1925?
The bonus was based on years of service and paid in full by 1945.
Why did many veterans need their bonus immediately during the Depression?
Many veterans needed their bonus immediately due to financial hardship caused by the Depression.
What happened on June 15th, 1932, regarding war veterans?
On June 15th, 1932, around 20,000 war veterans marched in Washington D.C. to publicize their cause.
How did President Hoover respond to the march of war veterans in Washington?
President Hoover offered $100,000 to pay for transportation home for the war veterans who marched in Washington. Many refused his offer
