Ch 14 Section 3: Things to Know

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Presentation transcript:

Ch 14 Section 3: Things to Know Why did President Hoover respond cautiously to the Great Depression? What did the policy of volunteerism call for? Why did volunteerism fail? Why did Hoover urge Congress to institute the RFC? Why did Congress institute the RFC? What is Trickle-Down Economics? What did some Americans blame the Great Depression on? What was the Bonus Army? What did Hoover do that led to the Bonus Army’s march on Washington in 1932? What happened when the Bonus Army marched in protest on Washington? Why did Americans believe the country needed new leadership in 1932?

Chapter 14: The Great Depression Section 3: Hoover’s Response Fails

Things to Know Why did President Hoover respond cautiously to the Great Depression? Hoover thought that the business cycle would correct itself automatically. What did the policy of volunteerism call for? Volunteerism called for public works programs. These public works programs were created to increase employment, stabilize purchasing power, improve public welfare, and contribute to the revival of the American economy.

Things to Know Why did volunteerism fail? It failed because businesses and citizens acted in their individual best interests. They would rather increase their own personal stability rather than the stability of all at once. Why did Hoover urge Congress to institute the RFC? Hoover wanted the Reconstruction Finance Corporation because he believed that the economy suffered from a lack of credit.

Things to Know Why did Congress institute the RFC? Congress instituted it to loan money to banks so that they could lend money to businesses to stimulate economic activity. What is Trickle-Down Economics? It is the theory that money invested in banks and businesses will work its way through the system to laborers.

Things to Know What did some Americans blame the Great Depression on? They blamed the Great Depression on capitalism, or the growth and development of big businesses. What was the Bonus Army? They were World War I veterans who marched to demand payment of money promised by Congress.

Things to Know What did Hoover do that led to the Bonus Army’s march on Washington in 1932? Hoover vetoed the bill that Congress passed allowing early bonus payment to out-of-work veterans. He felt that money would be better spent helping fix the economy. What happened when the Bonus Army marched in protest on Washington? Federal troops were deployed to use tear-gas and marched with their bayonets on the protestors, many of the veterans were injured. They pushed the veterans out of Washington altogether.

Things to Know Why did Americans believe the country needed new leadership in 1932? Americans felt as if Hoover’s volunteerism and trickle-down economic policies had failed. They turned to over candidates for the upcoming election.