Hoover's Response to the Great Depression

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Questions and Answers

What was the primary impact of the Bonus Army eviction on Hoover's public image?

  • It helped him gain support from veterans.
  • It improved his approval ratings among the wealthy.
  • It solidified his image as a compassionate leader.
  • It reinforced his image as being ineffective. (correct)

How did Franklin D. Roosevelt aim to address the Great Depression?

  • By focusing solely on volunteerism and local initiatives.
  • By implementing the New Deal, a series of federal programs and policies. (correct)
  • By relying solely on the advice of Republican advisors.
  • By continuing Hoover's policies of non-intervention.

What role did Eleanor Roosevelt play during her husband's presidency?

  • She spent her time solely on creating federal programs.
  • She acted as his 'eyes and ears' by traveling the country and listening to the people's concerns. (correct)
  • She primarily focused on international relations and policy.
  • She primarily remained in Washington, D.C. and did not interact with the public.

What was the effect of Hoover's approach to the Great Depression?

<p>His policies and approaches failed to alleviate the suffering and led to widespread dissatisfaction. (C)</p> Signup and view all the answers

What was the 'Brain Trust' assembled by FDR?

<p>A diverse group of advisors who helped plan his response to the depression. (B)</p> Signup and view all the answers

What was Hoover's initial approach to the economic downturn?

<p>Following a hands-off policy, believing business cycles were natural. (C)</p> Signup and view all the answers

What was the main idea behind Hoover's policy of volunteerism during the Great Depression?

<p>To encourage Americans to act for the good of the country through charitable actions and cooperation. (A)</p> Signup and view all the answers

What action did Hoover request from business and industrial leaders?

<p>To keep employment, wages, and prices at current levels. (A)</p> Signup and view all the answers

What specific actions did Hoover request from the government to help combat the depression?

<p>To reduce taxes, lower interest rates, and launch public-works programs. (D)</p> Signup and view all the answers

What was a key reason why Hoover's volunteerism policy failed?

<p>Businesses prioritized their own interests over the collective good by cutting wages and laying off workers. (A)</p> Signup and view all the answers

How did Hoover view the role of government intervention in the economy, initially?

<p>The government should remain hands-off and allow economic cycles to run their course. (D)</p> Signup and view all the answers

What did Hoover believe would reverse the economic downturn, according to his policies?

<p>Voluntary cooperation along with increased production and consumption. (A)</p> Signup and view all the answers

Why did Hoover seek private charity?

<p>Because he felt that private charities should distribute aid, as an element in his volunteer program. (B)</p> Signup and view all the answers

Why did farmers increase crop production in the lead-up to the Great Depression?

<p>They aimed to keep their family farms afloat. (D)</p> Signup and view all the answers

What was President Hoover's initial approach to addressing the economic crisis?

<p>Reliance on state and local aid and private charities. (A)</p> Signup and view all the answers

What was the main challenge faced by state and local governments during the Depression, according to the text?

<p>Insufficient financial and human resources to address the crisis. (A)</p> Signup and view all the answers

What is 'rugged individualism,' as promoted by President Hoover?

<p>Self-reliance and individual effort without direct government aid. (A)</p> Signup and view all the answers

What was the purpose of the Reconstruction Finance Corporation (RFC)?

<p>To offer government loans to banks and large businesses. (C)</p> Signup and view all the answers

What was the theory behind 'trickle-down economics' as implemented by Hoover?

<p>Government money lent to big business would lead to job-creation. (B)</p> Signup and view all the answers

Why was the Reconstruction Finance Corporation (RFC) ultimately unsuccessful in ending the Depression?

<p>Companies used the money for investments instead of hiring workers. (C)</p> Signup and view all the answers

What did 'Hoovervilles', 'Hoover wagons' and 'Hoover heaters' represent?

<p>Public dissatisfaction with the President and his failed policies. (A)</p> Signup and view all the answers

What was the main argument made by those who supported socialism or communism during the Great Depression?

<p>Capitalism leads to inequity and market failure. (A)</p> Signup and view all the answers

Despite the economic hardships of the time, why did most Americans reject calls for communist revolution?

<p>They valued individual freedoms and the promise of progress. (B)</p> Signup and view all the answers

What was the main purpose of the Bonus Army march on Washington, D.C.?

<p>To demand immediate payment of a previously promised bonus. (B)</p> Signup and view all the answers

What was the outcome of the Bonus Army's demands in 1932?

<p>The House of Representatives passed a bill, but it was rejected by the Senate. (C)</p> Signup and view all the answers

What prompted President Hoover to finally reverse his approach and use federal resources to combat the Depression?

<p>The growing crisis and negative backlash against his policies. (D)</p> Signup and view all the answers

What was a major effect of the construction of the Boulder Dam (Hoover Dam)?

<p>It provided much-needed employment to the Southwest during the early 1930s. (C)</p> Signup and view all the answers

Based on the text, what was a significant factor that made the depression such a difficult situation to solve?

<p>A disconnect between local initiatives and the overall economic issue. (B)</p> Signup and view all the answers

What was General Douglas MacArthur's justification for using force against the Bonus Army?

<p>They were a band of revolutionaries attempting to take over the government. (A)</p> Signup and view all the answers

What was a key difference in how President Hoover and Franklin D. Roosevelt dealt with the Bonus Army?

<p>Hoover sent the military to remove them; Roosevelt sent his wife to interact with them. (B)</p> Signup and view all the answers

Which of the following best describes President Hoover's initial approach to the Great Depression?

<p>He believed the government should not deeply interfere, relying on business to recover naturally and charity. (B)</p> Signup and view all the answers

What was the purpose of creating the Reconstruction Finance Corporation (RFC)?

<p>To provide low interest rate loans to failing banks, railroads and businesses. (A)</p> Signup and view all the answers

How did President Roosevelt demonstrate his bipartisan approach to politics?

<p>By nominating two Republicans to high-ranking positions within his cabinet. (B)</p> Signup and view all the answers

Which of the following was a critical factor contributing to Herbert Hoover's loss in the 1932 presidential election?

<p>The use of force against the Bonus Army, which turned the public against him. (C)</p> Signup and view all the answers

What was the “Brain Trust”?

<p>A group of academics and professionals who advised FDR on the New Deal. (B)</p> Signup and view all the answers

What was a specific action undertaken by General Patton against the Bonus Army?

<p>Ordered his troops to threaten the marchers using sabers. (C)</p> Signup and view all the answers

Which statement best characterizes how regular Americans felt about Hoover's performance during the Depression?

<p>They felt that he had failed to help them and they were ready for a change. (A)</p> Signup and view all the answers

What event highlighted a significant contrast in the approaches of Hoover and Roosevelt towards the Bonus Army?

<p>The means by which they handled their presence in Washington, D.C. (A)</p> Signup and view all the answers

What was a key consequence of the Bonus Army incident?

<p>It undermined public confidence in President Hoover's leadership. (D)</p> Signup and view all the answers

What did Franklin D. Roosevelt's nomination as the Democratic presidential candidate indicate about the political mood of the nation?

<p>A lack of confidence in the current executive branch of the government. (A)</p> Signup and view all the answers

What was Frances Perkins known for during FDR's presidency?

<p>She was the first woman to hold a cabinet position (B)</p> Signup and view all the answers

What effect did the use of force against the Bonus Army have on Hoover's public image?

<p>It severely damaged his public image causing him to lose support. (B)</p> Signup and view all the answers

What was the public's general reaction to President Hoover's handling of the Great Depression?

<p>The public became increasingly frustrated with his perceived inability to end the economic crisis. (D)</p> Signup and view all the answers

What was the purpose of the 'Bonus Army' march on Washington, D.C.?

<p>To demand early payment of bonuses promised to WWI veterans. (A)</p> Signup and view all the answers

Which policy did President Hoover NOT employ to combat the Great Depression?

<p>Direct aid, establishing federal programs to directly assist the unemployed. (A)</p> Signup and view all the answers

What was the key difference in approach between Herbert Hoover and Franklin D. Roosevelt in addressing the Great Depression?

<p>Hoover avoided federal intervention, while Roosevelt advocated for it. (A)</p> Signup and view all the answers

How successful was Hoover's policy of 'volunteerism' in addressing the Great Depression?

<p>It was largely unsuccessful as the majority of businesses cut wages to stay afloat, and farmers increased production. (A)</p> Signup and view all the answers

What was the outcome of the Bonus Army protest in Washington, D.C.?

<p>The veterans were violently evicted by the military, which damaged Hoover's reputation. (B)</p> Signup and view all the answers

What role did Eleanor Roosevelt play in FDR's administration?

<p>She traveled around the country to gather and report public feedback. (D)</p> Signup and view all the answers

What was 'localism', as promoted by Herbert Hoover?

<p>The idea that state and local governments are best suited to provide relief during economic downturns. (D)</p> Signup and view all the answers

How did the Reconstruction Finance Corporation(RFC) attempt to stimulate the economy?

<p>By providing government loans to businesses and banks. (A)</p> Signup and view all the answers

Which of the following was NOT a direct consequence of Hoover's handling of the Bonus Army?

<p>A rise in support for Hoover ahead of the next election. (B)</p> Signup and view all the answers

What economic philosophy was gaining some popularity during the Great Depression as an alternative to capitalism?

<p>Socialism or communism, promoting a state-run economy. (A)</p> Signup and view all the answers

What was 'trickle-down economics' as hoped to be applied by President Hoover?

<p>A strategy to aid businesses and banks, hoping it would benefit the lower classes. (B)</p> Signup and view all the answers

Why did the Reconstruction Finance Corporation(RFC) ultimately fail to achieve its intended goals?

<p>Banks were not giving out loans and businesses were not hiring. (B)</p> Signup and view all the answers

What was a major success of Hoover’s presidency during the Great Depression?

<p>The construction of the Hoover Dam. (B)</p> Signup and view all the answers

What was President Hoover's view on government intervention in the economy during the Great Depression?

<p>He initially opposed government intervention, believing in rugged individualism and that businesses could fix the economy themselves. (C)</p> Signup and view all the answers

Flashcards

Hoover's philosophy during the Great Depression

Hoover's approach of relying on individual initiative and local solutions to solve the Great Depression problem. He believed in minimal government intervention and promoted volunteerism.

Brain Trust

A group of experts assembled by Franklin D. Roosevelt to advise him on policies and strategies to combat the Great Depression.

New Deal

A series of programs and policies implemented by Franklin D. Roosevelt to address the Great Depression. It aimed to provide relief for unemployed Americans, promote economic recovery, and implement reforms in the economy.

Eleanor Roosevelt's role

Eleanor Roosevelt's role in her husband's presidency. She traveled extensively, listened to people's concerns, and acted as a conduit between the administration and the public.

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Why Hoover lost the 1932 election

The inability of Hoover's policies to effectively alleviate the Great Depression, leading to widespread dissatisfaction and ultimately his defeat in the 1932 presidential election.

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Hoover's Hands-Off Policy

Hoover believed that government should not interfere with the natural ups and downs of the business cycle, as they were like storms that could be weathered without government intervention.

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Hoover's Policy of Voluntary Cooperation

Hoover's initial approach to addressing the Great Depression was to encourage businesses and labor to voluntarily work together to maintain employment, wages, and prices.

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Hoover's Economic Measures

Hoover encouraged businesses to keep wages and prices stable, while also calling for government actions to lower taxes, reduce interest rates, and create public works.

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Hoover's Reliance on Charity

Hoover believed that individuals should donate money to charities to help those in need during the Great Depression.

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Hoover's Belief in Voluntary Cooperation

Hoover's belief that he could persuade businesses and individuals to act in the best interests of the country, rather than their own, led him to rely on voluntary cooperation to address the Great Depression.

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Why Hoover's Voluntary Approach Failed

While well-intended, Hoover's belief in voluntary cooperation proved ineffective in addressing the Great Depression, as businesses prioritized their own survival and cut wages and jobs.

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Hoover's Response to the Great Depression

Hoover's approach to the Great Depression, while fueled by good intentions, ultimately relied too heavily on voluntary cooperation, which failed as businesses prioritized survival over national interests.

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Hoover's approach to the Depression

Hoover's belief that local and state governments should handle the crisis, without federal intervention.

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Rugged Individualism

Hoover's policy of relying on individual effort to overcome hardship, rather than government assistance.

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Hoovervilles

The nickname for makeshift shantytowns built by homeless people during the Depression.

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Reconstruction Finance Corporation (RFC)

The government agency created by Hoover to provide loans to businesses and banks, hoping to stimulate the economy.

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Trickle-down Economics

Economic theory that argues that money given to the wealthy will trickle down to the rest of the economy.

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Boulder Dam

The large dam project built during the Depression, creating jobs and infrastructure.

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Calls for Radical Change

The growing sentiment among some Americans that capitalism was failing and alternative systems like socialism or communism were preferable.

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The Bonus Army

The march of World War I veterans on Washington D.C. demanding early payment of their promised bonuses.

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Desire for Substantial Change

The belief that the American system needed significant changes, even if not a complete revolution.

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Adjusted Compensation Act

The act passed in 1924 that promised veterans a lump-sum payment in 1945.

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Economic Troubles in Europe

The economic circumstances that led to the rise of fascism in Europe.

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Benito Mussolini

The leader of Italy during the rise of fascism.

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Adolf Hitler

The leader of Germany during the rise of fascism.

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Faith in American Institutions

The strength shown by the American public in continuing to believe in their country's institutions despite the crisis.

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Communism

The movement that sought to overthrow capitalism and replace it with a socialist or communist system.

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Hoover's Philosophy

Hoover's approach to the Great Depression, emphasizing individual responsibility, limited government intervention, and support for local solutions.

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Laissez-Faire Economics

The belief that the government should not intervene in the economy, allowing businesses to operate without regulation.

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Cyclical Theory of Depression

The belief that economic hardship is a natural part of the business cycle and that government intervention only worsens the situation.

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Volunteerism

Hoover's approach to addressing the Great Depression by focusing on voluntary cooperation and support from businesses and individuals.

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Localism

Hoover's belief that state and local governments should be primarily responsible for handling the impact of the depression.

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Bonus Army

World War I veterans who marched on Washington D.C. in 1932 demanding early payment of bonuses promised by the government.

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Bonus Army Eviction

The forceful eviction of the Bonus Army from Washington D.C. by the military, a controversial event that damaged Hoover's public image.

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FDR's New Deal

Roosevelt's approach to the Great Depression, which involved active government intervention and federal programs designed to stimulate the economy and provide relief to those in need.

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Government Intervention

The idea that the government should play a more active role in regulating the economy and providing social welfare programs.

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Eleanor Roosevelt

FDR's wife, who was an active social reformer and advocate for social justice, heavily involved in public affairs and helping FDR connect with the public.

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Roosevelt's Rise and Hoover's Decline

The shift in public opinion towards Roosevelt and away from Hoover due to his perceived failures in handling the depression.

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Socialism and Communism

The movement toward socialism or communism as alternatives to capitalism, often fueled by economic dissatisfaction during the depression.

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Socialism

A political ideology that advocates for public ownership or democratic control of the means of production, distribution, and exchange.

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Hands-off policy

Hoover's belief that the government should not intervene in economic downturns, allowing natural cycles to play out.

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Faith in localism

Hoover's belief that state and local governments, not the federal government, should address economic issues.

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Hoover's resistance to federal aid

The idea that government intervention in the economy is unconstitutional.

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Argument for socialism or communism

The argument that in times of severe economic hardship, people should turn to socialist or communist systems, where the government controls the economy.

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The Bonus Army eviction

The moment when American troops, led by General MacArthur, forcibly removed the Bonus Army from Washington D.C.

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Hoover's declining popularity

The widespread negative public perception of President Hoover's handling of the Great Depression, leading to his defeat in the 1932 election

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Franklin D. Roosevelt

The Democratic presidential candidate and eventual winner of the 1932 election, who promised a new approach to the Great Depression.

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The "Brain Trust"

A group of professionals and academics who advised Franklin D. Roosevelt on his economic policies, nicknamed by the press.

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FDR's bipartisan openness

FDR's willingness to include Republicans in his administration, demonstrating a bipartisan approach.

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Frances Perkins

The first woman to serve in a US presidential cabinet, appointed by FDR as Secretary of Labor.

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FDR's response to the Bonus Army

FDR's response to the Bonus Army's return in 1933, sending Eleanor Roosevelt, rather than the military, to address their concerns.

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Study Notes

Hoover's Response to the Great Depression

  • Hoover initially adopted a hands-off approach, viewing economic downturns as natural cycles that businesses could overcome without government intervention.
  • He promoted volunteerism, encouraging businesses and individuals to maintain current employment, wages, and production levels. Wealthy individuals were urged to contribute to charities.
  • Hoover also believed in localism, arguing that state and local governments should handle the economic crisis; these entities lacked the resources to address extensive economic hardship.
  • Hoover resisted using federal funds for direct relief, believing it was unconstitutional.

Failure of Hoover's Policies

  • Hoover’s reliance on businesses and individuals voluntarily cooperating to maintain employment and production was ineffective.
  • Businesses reacted by lowering wages and laying off workers. Farmers, in an attempt to maintain livelihoods, increased production. People prioritized individual economic pursuits over cooperation.
  • Local governments were under-equipped to manage the vast economic problems and lacked necessary financial and human resources.

The Reconstruction Finance Corporation (RFC)

  • Hoover established the RFC to provide government loans to businesses, banks, and railroads. This was based on a trickle-down economics theory - aiding businesses would stimulate production, hiring, and economic recovery.
  • The RFC's loans were not effectively leveraged by banks and businesses to create jobs or boost production, thus failing to trickle down as intended.

Public Perception and the Bonus Army

  • Hoover's policies were widely viewed as ineffective as homelessness grew and widespread economic hardship continued. People began referring to makeshift shelters as Hoovervilles.
  • In 1932, World War I veterans, known as the Bonus Army, protested in Washington D.C., demanding early payment of bonuses.
  • Hoover's response, calling in federal troops to forcibly remove the veterans, severely damaged his reputation and contributed to his declining approval ratings.
  • The use of military force against the Bonus Army and the ongoing economic hardship eroded trust in Hoover's presidency.

Alternative Economic Theories

  • Some Americans questioned the capitalist system and advocated for socialism or communism as solutions to the Great Depression.
  • They argued that capitalism exacerbated wealth inequality and competition in the U.S. and looked to the Soviet Union as an example of a state-run economy successfully addressing economic woes.
  • The majority of Americans, however, did not support these radical alternatives to the capitalist system.

Roosevelt's Rise

  • Hoover’s failure to address the Great Depression negatively affected his chances for re-election in 1932.
  • The economic challenges—high unemployment, bank failures, poverty, and widespread homelessness—led to widespread public dissatisfaction.
  • Franklin D. Roosevelt, the Democratic candidate, gained support and was elected president in 1932.

Roosevelt's Approach

  • Roosevelt's presidency was sharply contrasted with Hoover's reluctance to use federal power.
  • FDR pledged to address the economic crisis with a more interventionist approach, outlined in his New Deal program.
  • He formed an advisory group known as the "Brain Trust" to aid in developing the policies.
  • Eleanor Roosevelt played a significant role in FDR's presidency, acting as a bridge to ordinary citizens' concerns.

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