Hoover's response (will add more - this is just from PLC) Flashcards

1
Q

Hoover’s two core beliefs

A

Self help - Individualism and the idea you have to make your own way in life, you cannot rely on anyone else.
Voluntarism - Business and state government should solve the Great Depression through their own voluntary efforts. Encouraged charity to do the brunt of the work.

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2
Q

The Hawley-Smoot tariff

A
  • Tariffs up 40% - European countries began to abandon free trade. Fewer US goods exported.
  • 1929-1930: International Trade fell by $500 million - $1.2 billion the following year.
  • Harmed the farmers - they relied on foreign trade.
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3
Q

Reconstruction Finance Corporation ineffectiveness

A
  • January 1932: $2 billion to rescue the banks.
  • Most money went to big banks.
  • Failed to protect small banks from closing.
  • Ignored the fact many Americans were in distress.
  • 10,000 banks closed between 1929-1933
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4
Q

Emergency Relief and Construction Act - 1932

A
  • Authorise the RFC to lend up to $1.5 billion to states to finance public work.
  • This would provide employment.
  • States had to declare bankruptcy to qualify.
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