How Did Hoover Fail To End The GD? Flashcards
What were Germany’s obligations under the Treaty of Versailles?
Germany agreed to make reparation payments to the Allies to help repair damage caused during the war.
The sum was set at €6.6 billion.
What was the purpose of the moratorium on inter-Allied war debt negotiated by Hoover?
To encourage international trade by releasing more money directly into the economy.
This was done in 1931 to prevent a global economic depression.
What did the Smoot-Hawley Tariff of 1930 do?
It raised import taxes on foreign goods to the highest level in US history, averaging 40 percent.
It aimed to protect domestic producers but led to retaliation from other countries.
How did unemployment change during Hoover’s presidency?
Unemployment rose from 6.9 percent in 1930 to 24.1 percent in 1933, with 13 million Americans losing their jobs.
62 percent of these were unemployed for more than one year.
What was a ‘Hooverville’?
A makeshift shanty town that housed the homeless during the Great Depression.
Named after President Hoover, who was blamed for the economic hardship.
What was President Hoover’s belief regarding the economy’s recovery?
He believed the economy would right itself and that federal intervention could be a barrier to recovery.
This belief stemmed from his view of rugged individualism.
What action did Hoover take regarding German reparation payments?
He negotiated the cancellation of German reparation payments in 1932.
This was part of his efforts to stabilize the economy.
True or False: Hoover was widely praised for his handling of the Great Depression.
False
He was vilified for not taking effective action.
What did Hoover’s 1928 campaign slogan promise?
A chicken in every pot and a car in every garage.
This was seen as unrealistic as unemployment rose.
Fill in the blank: Hoover believed in ________, the idea that people should be self-reliant.
[rugged individualism]
What was the impact of the Smoot-Hawley Tariff on international trade?
It led to a contraction of the world economy as other countries raised their tariffs in retaliation.
This made economic recovery even more difficult.
What was the Reconstruction Finance Corporation (RFC) established for?
To provide financial support to banks and businesses during the Depression.
It aimed to stabilize the financial system.
What was the general public perception of Hoover during the Depression?
He was viewed as indecisive and lackluster compared to Franklin D. Roosevelt.
Roosevelt is often regarded as one of the greatest US presidents.
Who was the President during the Great Depression?
Herbert Hoover was the President during the onset of the Great Depression.
What was the Reconstruction Finance Corporation (RFC)?
The RFC was created in January 1932 as a direct attempt by the federal government to alleviate the economic depression.
How much money was allocated to the RFC?
$2 billion of taxpayers’ money was allocated to the RFC to assist banks and insurance companies.
What percentage of the RFC’s funds went to small- and medium-sized banks?
90 percent of the RFC’s money went in loans to small- and medium-sized banks.
What was the aim of the RFC?
The aim of the RFC was to help revive the US banking system and prevent further banking collapse.
What did the RFC achieve from February to March 1932?
The RFC helped 160 banks, 60 railroads, and 18 mortgage companies during that period.
What was a major criticism of the RFC?
The RFC failed to encourage banks to lend more to businesses facing severe financial problems.
What was Hoover’s sentiment about the economic recovery by autumn?
Hoover was downcast by autumn that things were not showing signs of economic recovery.
Who continued to use the RFC after Hoover?
Franklin D. Roosevelt (FDR) continued to use the RFC as part of his economic recovery efforts.
What was the Emergency Relief and Construction Act?
The Emergency Relief and Construction Act, passed on 21 July 1932, was the USA’s first massive relief programme.
What was the purpose of the Emergency Relief and Construction Act?
It aimed to directly help the unemployed by providing federal funds to state governments for public works.
How much funding did the Emergency Relief and Construction Act allocate to state governments?
$1.5 billion.
What was required for state governments to qualify for funding under the Emergency Relief and Construction Act?
State governments had to prove they were running out of money for unemployment relief.
What criticism did Walter Lippmann have regarding the relief efforts?
$2 billion would be enough to help just ten percent of America’s unemployed.
What was a significant change in federal government policy during Hoover’s administration?
The Emergency Relief and Construction Act represented a major change in federal government policy.
What was the conclusion regarding Hoover’s handling of the Depression?
Hoover’s failure to effectively address the Depression cost him the presidency in November 1932.
What external factors contributed to the economic crisis during Hoover’s presidency?
The global economy went into a serious depression after 1929, and the US economy was already fragile before the Wall Street Crash.
