Questions and Answers
What is localism?
Policy relied on by President Hoover in the early years of the Great Depression whereby local and state governments act as primary agents of economic relief.
What was Hoover's initial policy for dealing with the depression?
At first he felt that government should not get involved, so he did nothing.
What happened to Hoover's ideas that volunteerism and localism would fix the financial crisis?
They were ineffective.
Why did Herbert Hoover initially do little to respond to the nation's economic crisis?
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How did Herbert Hoover think volunteerism would help turn the economy around?
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Why did the policy of localism fail to provide sufficient economic relief?
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What is meant by hands-off policy?
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What is volunteerism?
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What was the Reconstruction Finance Corporation?
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What is trickle-down economics?
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What is the Hoover Dam?
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What theory prompted Hoover's plan to loan money to banks and other large businesses?
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How was the Reconstruction Finance Corporation (RFC) supposed to battle the depression?
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Why did Herbert Hoover's theory of trickle-down economics fail to work as he had hoped?
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What positive effect did the construction of the Hoover Dam have on the economy of the Southwest in the 1930s?
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What did the Bonus Army want?
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What aspect of socialism did some Americans believe offered a way out of the depression?
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What did the Bonus Army demand from President Herbert Hoover?
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How did General Douglas MacArthur respond to Herbert Hoover's order to clear Bonus Army veterans from their makeshift camps?
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During the Great Depression, which economic system did many Americans think was part of the problem?
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What group of people marched on Washington, D.C., after World War I?
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What was the result of Hoover's order to remove the Bonus Army out of Washington, D.C.?
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Study Notes
Hoover's Policies and Approaches
- Localism: Policy advocating that local and state governments should be the primary agents for economic relief during the Great Depression.
- Initial Stance: Hoover initially adopted a hands-off approach, believing minimal governmental intervention was required to address the economic crisis.
- Ineffectiveness of Volunteerism and Localism: Both strategies were unsuccessful in alleviating the financial crisis due to lack of resources at local and state levels.
Economic Theories and Institutions
- Trickle-Down Economics: Economic theory positing that financial aid to banks and businesses would eventually benefit consumers, promoting overall economic recovery.
- Reconstruction Finance Corporation (RFC): Established in 1932, this federal agency aimed to provide emergency credit to banks, railroads, and large businesses.
- Failure of RFC: Banks often did not distribute government loans to businesses, undermining Hoover's recovery strategy.
Key Events and Figures
- Hoover Dam: Constructed during the Great Depression, the project significantly increased employment in the Southwest region.
- Bonus Army: A group of WWI veterans who marched on Washington, D.C. in 1932, demanding early payment of bonuses promised by Congress.
- Douglas MacArthur's Response: General MacArthur aggressively cleared the Bonus Army from the capital, employing force and leading to negative public perception of Hoover.
Political Ramifications
- Impact of Bonus Army Incident: Hoover's decision to remove the Bonus Army damaged his public image and diminished his chances for re-election.
- Public Sentiment Toward Capitalism: During the Great Depression, many Americans viewed capitalism as contributing to economic problems, leading some to consider alternatives like a state-run economy.
Conclusion
- Hoover's reliance on localism and volunteerism proved inadequate in addressing the Great Depression, leading to significant economic and political consequences.
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Description
Test your knowledge on President Hoover's policies during the Great Depression with this quiz. Delve into key terms like localism and volunteerism that shaped his approach to economic relief. Understand the context and implications of his strategies during this tumultuous period.