Hoover's response to the Depression (T2) Flashcards
What was Hoover’s belief of voluntarism?
The notion that business and state government should solve the Great Depression through their own voluntary efforts. Hoover encouraged business and state governments to carry on as if no Depression.
How did Hoover’s experiences influence his attitudes towards relief?
- Hoover was a self-made success.
- He believed in hard work, not in free government handouts.
- He believed this would lead to a class of people who were overly dependant on government.
- This became his belief in self-help.
What did Hoover do to try to tackle problems in agriculture?
1929 Agricultural Marketing Act set up the Federal farm board with $500 million to deal with overproduction. They were to buy, store and eventually dispose of farm surpluses
Why did the agricultural methods not work?
Overproduction still happened, and the board just wasted lots of money paying high prices for the goods
What was the Smoot-Hawley tariff, and how did it have a negative effect?
Put tariffs up to 40%, led to European countries abandoning free trade and fewer US goods were exported
Between 1929-1930 value of international trade fell by $500 million, the following year $1.2 billion
What did Hoover do to European war debts and why did this have a negative effect?
Repudiated them. He did not act quickly enough to stop the collapse of European economies, so they could no longer pay back their debts.
What did Hoover do for unemployment relief?
Gave $500 million, inadequate amount to help agencies provide relief.
He would not abandon self help
What was the Reconstruction Finance Corporation and why was it ineffective?
January 1932, most radical measure. $2 billion to rescue banks. Most of the money went to help big banks, failed to stop small banks closing, and ignored the fact that so many individual Americans were in distress
What was the Bonus Army? And how did Hoover react to them?
War veterans who had been promised money for their service. The veterans wanted the money earlier than 1945, so marched on Washington. Hoover ordered their removal from the Hooverville they were camped in. this led to violence.
Why were people struggling to receive aid, even if there were relief bodies?
The relief bodies were running out of funds
Why were relief bodies running out of funds?
Charities suffered a decline in funds during the Depression - when the funds were most needed
How did unemployment affect states individually?
Less people were working, therefore they received less in taxes
How did states receiving less taxes affect the people of that state?
They had to cut spending on their services, where they should be expanding the services
Give an example of the spending cuts due to less taxes
In Arkansas schools were closed for 10 months in the year
Teachers in Chicago were unpaid during the winter of 1932-1933
How much of the necessary funds could charities supply in 1932?
Only 6%
In 1931 and 1932 how much was relief cut by in most states?
by half - this was when it was needed most as well
Give an example of the relief being cut in 1931 and 1932
Michigan reduced funds from $2 million in 1931 to $832,000 in 1932
What was the result of the relief cuts in 1931 and 1932?
Many people went hungry or were starving
What % of the population did fortune magazine estimate were receiving no income?
28% of the total population receiving no income
The estimate that fortune magazine made for the amount of the population with no income did not include what?
The 11 million farm workers, many of who were in acute difficulties
What happened to many of the farmer’s mortgages?
They were foreclosed when farmers could no longer pay them anymore
What happened at many of the auctions where the foreclosed farms were being sold?
They attracted lots of violence as farmers were not happy about their treatment
How would farmers sometimes get their farms back?
Farmers would agree to only bid a few cents and then return the farm to its former owner
What did two state governors say in the face of the intimidation from the farmers?
The payments on the mortgages could be postponed until circumstances improved
What was so tragic about all the people who were going hungry in the US?
The fact that it was one of the riches food-producing countries in the world