USA:Hoover's response to the Depression 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 Hawley-Smoot 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, sop marched on Washington. Hoover ordered their removal from the Hooverville they were camped in. this led to violence.
