Chapter 21 Section 3 Notes
1. localism – policy whereby problems are best solved at the _______________ and local level and
not by the federal government
2. Reconstruction Finance Corporation – created in 1932 to lend cash to investors to
____________________ the economy
3. trickle-down economics – economic ______________ that held that money lent to large banks
and corporations would in turn be invested in small businesses which would hire more workers
4. Hoover Dam – huge public works project on the ________________ River that provided jobs,
water for irrigation, and power
5. Bonus Army – a march on Washington in 1932 in which World War I _________________seek
bonus payment early
6. Douglas MacArthur – supervised the forced ___________________ of the Bonus Army, which
angered many Americans
Why did Herbert Hoover’s policies fail to solve the country’s economic crisis?
7. As the Great Depression spread misery across America, ____________________ ____________
struggled unsuccessfully to respond to the nation’s problems.
8. As a result of Hoover’s failed response, in 1932 Americans would turn to a new leader and
increased government ____________________________ to stop the depression.
Herbert Hoover did not cause the Great Depression, but Americans looked to him to solve the crisis.
9. He tried a number of different ___________________________, but in the end he failed to
discover the right formula for stopping the crisis.
10. At the start of the economic downturn, Hoover took a ____________-________ approach.
11. Like most economists of the day, he believed that up and down swings in the economy were a
__________________________part of the business cycle.
12. It was thought that ___________________________ businesses would weather storms without
the support of the government.
Hoover saw that he must do something:
13. Asked businesses to keep wages, employment, and prices at _______________________ levels
14. Called for ____________ ______________, lower interest rates, and public works
15. Asked _____________________ to donate more money to charity
But volunteerism failed:
16. Hoover put his faith in___________________________, a policy whereby problems are best
solved at the local and state levels.
17. Towns and states didn’t have the necessary ___________________ to deal with the depression.
18. Hoover did not support direct _____________________ aid to individuals.
19. In 1932, Hoover urged Congress to create the __________________________ ______________
______________________ (RFC). The RFC employed a policy known as trickle-down economics.
20. The RFC gave ________________________ of dollars to banks and large businesses.
21. The idea was that they would _______________ to, and _________________in, struggling
businesses who would hire workers and thus end the depression.
22. The RFC failed when businesses did ___________hire more workers.
23. One policy that did succeed was the construction of ________________ __________ (later
renamed Hoover Dam) across the Colorado River.
24. Started in 1930, the huge dam provided power for millions and __________________ for farm
land, and put thousands to work.
25. Many grew ____________________________________during the Great Depression.
26. Some blamed Hoover and some blamed ___________________________.
27. Some were World War I veterans who wanted a ________________ that was promised to them.
28. In 1932, those veterans formed the ______________ __________ and marched on Washington.
29. Hoover ordered General _______________________ _____________________ to remove the
veterans. He used tear gas, cavalry, tanks, and troops with fixed bayonets.
30. Press photos of troops using excessive force angered the __________________________ public.
31. The eviction of the Bonus Army _______________________ Hoover’s bid for re-election.
32. Americans were ready for new leadership and a greater _______________ for the government
in solving problems.