Hoover's response to the Depression, 1929-33 (T2) Flashcards
What was the issue with Hoover?
He could not shift from his fundamental beliefs, that he never altered.
What were Hoover’s beliefs?
Believed people should be responsible for their own welfare.
How did Hoover’s beliefs impact his approach to the Depression?
He simply did not believe the government should try to solve people’s problems.
What did Hoover believe the government’s job was?
It was the government’s job simply to help people solve their problems by themselves.
Who was Hoover as a person?
He believed above all in equality of opportunity, he was a self-made man and felt everyone else could be too.
What did Hoover do to help combat the Depression?
He gave generously to charities, he cut his own and state official’s salaries by 20%.
Why did Hoover cut state official’s salaries?
To help provide revenues for his recovery measures.
Why do many argue that Hoover had lost touch with reality?
He well understood the seriousness of the Depression, but in public he had to be optimistic.
What did the Depression lead to the growth of?
‘Hoovervilles’
What were Hoovervilles?
The name given to the shanty towns that grew in open spaces on the edge of almost every town and city.
Who lived in Hoovervilles?
They were peopled by the homeless and hoboes seeking work.
What were the conditions of Hoovervilles?
People lived in squalid conditions with shelters made from any available materials.
What was hygiene like in Hoovervilles?
No sanitation and often inadequate water supplies.
What was the largest Hooverville?
At St Louis, Missouri, and was financed by private donations and had an unofficial mayor and church.
What happened to Hoovervilles?
Some became semi-permanent and well organised.
What was the most famous Hooverville?
That of the ‘Bonus Army’.
What could Hoover not accept?
Direct government relief.
What did Hoover continue to believe?
That the economy had to right itself.
What did Hoover try to persuade?
Tried to persuade businessmen and state governments to combat the Depression through their own voluntary efforts.
What did Hoover encourage businessmen to do?
He implored them not to reduce their workforce or cut wages, but to maintain output and urge people to buy.
What did Hoover encourage state leaders to do?
To begin new programmes of public works as well as continuing with the old.
What happened to businesses as the Depression worsened?
Had little choice but to cut back, workers were laid off, investment was postponed and wages were reduced.
What did states have to do as the Depression worsened?
Reduce their spending.
What was the extent of the problems of the Depression?
Were simply too great for voluntarism to work, particularly when it went against customary business practice.
What did Bankers set up in October 1931?
The National Credit Corporation, with the task of helping failing banks survive.
What did the National Credit Corporation do?
It began with a capital fund of $500 million donated by the major financial institutions.
Did the National Credit Corporation work?
With banks continuing to fail at unprecedented rates, the Corporation had spent only $10 million by the end of 1931.
What happened to the Corporation?
Faded away.
What was the rate of unemployment in 1929?
3.2%
What was the GDP in 1929?
$103.6 billion
What was the GNP in 1929?
$203.6 billion
What was the growth rate in 1929?
6.7%
What happened in October 1929?
Price of shares fell by $14 billion.
What government action was taken in 1929?
Agricultural Marketing Act
What was the rate of unemployment in 1930?
8.9%
