Ch 14 Section 3: Things to Know
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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.