Hoovers Response to the Depression What causes changes

Hoover’s Response to the Depression What causes changes in the economy over time? How do depressions affect societies?

Terms 1. Series – a number of events that come one after another 2. Public works – projects such as highways, parks, and libraries built with public funds for public use 3. Community – people with common characteristics living in the same area 4. Relief – aid in the form of money or supplies for those in need 5. Foreclose – to take possession of a property from a mortgagor because of defaults on payments

Taking Notes: Organizing MAJOR RECOVERY PLANS Industry was to keep factories open and stop slashing wages Business Leaders did not follow through Hoover wanted to increase public works Pump money into the economy This had little effect This was too limited and could not reverse the accelerating collapse

Critical Thinking – page 241 1. How are Hoover and the Democrats portrayed in the cartoon on the left? Hoover is shown as a nursemaid trying to quiet the various unhappy “babies”, or problems his administration faces. The Democrats are shown as strutting and loudly singing about the problems but not offering anything new.

Critical Thinking – page 241 2. What does the cartoon on the right suggest about Hoover’s plan to help farmer’s? The cartoonist pictures Hoover’s farm relief as a scarecrow, trying to scare off the birds labeled “Hard Times”. The scarecrow implies that Hoover’s plan is not real – it’s made of straw. It won’t actually do away with the hard times.

Progress Check – page 242 1. What two major strategies did President Hoover use to promote economic recovery? He organized a series of conferences, bringing together the heads of banks, railroads, and other big businesses, as well as labor leaders and government officials, in an attempt to preserve jobs and stop sinking wages. He increased the funding for government-financed building projects to create jobs.

Progress Check – page 243 2. Between 1931 and 1932, what federal government programs and acts were created to promote economic recovery, and what was each intended to do? The National Credit Corporation (NCC) was set up to ease the money shortage. The Reconstruction Finance Corporation (RFC) was set up to make loans to businesses. The Emergency Relief and Reconstruction Act allotted $1. 5 billion to public works to help create jobs and $300 million in emergency loans to states so that they could provide direct relief to people in need.