Chapter 32: The Politics of Boom and Bust Study Guide
Chapter #32: IDENTIFICATIONS
Andrew Mellon: Secretary of Treasury under President Harding, Coolidge and Hoover, who instituted a Republican policy of reduced government spending, lower taxes to the wealthy and higher tariffs.
Herbert Hoover: President during the time of the Great Depression; Republican candidate who assumed the presidency in March 1929 promising the American people prosperity and attempted to first deal with the Depression by trying to restore public faith in the community.
Albert B. Fall: He was Secretary of the Interior during Harding's administration, and was a scheming anti-conservationist. He was convicted of leasing naval oil reserves and collecting bribes, which was called the Tea Pot Dome scandal.
Robert LaFollette: Republican Senator from Wisconsin - ran for president under the Progressive Party - proponent of Progressivism and a vocal opponent of railroad trusts, bossism, World War I, and the League of Nations.
Alfred E. Smith: He was the Democratic presidential candidate in the 1928 election. He was the first Catholic to be elected as a candidate. Former governor of New York who ran for President against Herbert Hoover. He was against Prohibition.
Ohio Gang: A group of poker-playing, men that were friends of President Warren Harding. Harding appointed them to offices and they used their power to gain money for themselves. They were involved in scandals that ruined Harding's reputation even though he wasn't involved.
Washington Conference: 1921 – President Harding invited delegates from Europe and Japan, and they agreed to limit production of war ships, to not attack each other's possessions, and to respect China's independence
Kellogg-Briand Pact: Agreement signed in 1928 in which nations agreed not to pose the threat of war against one another; no way of enforcing peace.
Fordney-McCumber Tariff Law: This tariff rose the rates on imported goods in the hopes that domestic manufacturing would prosper. This prevented foreign trade, which hampered the economy since Europe could not pay its debts if it could not trade; raised tax on imports to 60%.
Teapot Dome Scandal: A government scandal involving a former United States Navy oil reserve in Wyoming that was secretly leased to a private oil company in 1921.
Dawes Plan: A plan to revive the German economy, the United States loans Germany money which then can pay reparations to England and France, who can then pay back their loans from the U.S.
Hawley-Smoot Tariff: Charged a high tax for imports thereby leading to less trade between America and foreign countries along with some economic retaliation.
Reconstruction Finance Corporation (RFC): Congress set up $2 billion. It made loans to major economic institutions such as banks, insurance companies and railroads.
Bonus Army: Unemployed World War I veterans who came to Washington in the spring of 1932 to demand the immediate payment of the bonus congress had voted them in 1922. The veterans were forcibly removed from Anacostia Flats by federal troops under the command of Douglas MacArthur.
Hoover-Stimson doctrine: 1932, Hoover's Secretary of State said the US would not recognize territorial changes resulting from Japan's invasion of Manchuria.
Chapter #32 Identifications
The Republican "Old Guard" Returns
Know: Warren Harding, Ohio Gang
1. What flaws did Warren Harding possess?
Warren Harding was tall, handsome, silver- haired and was friendly and popular. However, he was of average intelligence and was very gullible. He was not able to tell who was telling the truth and who was a liar.
GOP Reaction at the Throttle
2. What pro-business policies were taken by the government during the Harding administration.
The court case Adkins v. Children’s Hospital, reversed the reasoning of Muller v. Oregon. It erased the women’s protection at work and wiped out a minimum wage law for women. The Interstate Commerce Commission was set up to regulate the railroads. It was made up of men sympathetic to the railroad managers. The new Old Guard also hoped to improve on the old business doctrine of laissez- faire. Their plea was not simply for government to keep their hands off business, but for the government to help guide business along the path to profits. They accomplished this subtly and effectively.
The Aftermath of War
Know: Railway Labor Board, American Legion, Adjusted Compensation Act
3. What effects did the war have on the post-war economy?
The War Industries Board disappeared and progressive hopes for more government regulation of big business evaporated. Congress passed the Esch- Cummins Transportation Act, which encouraged private consolidation of the railroads and pledged to the Interstate Commerce
Commission to guarantee their profitability. Labor, suddenly deprived of its wartime crutch of friendly government support, limped along badly in the postwar decade. The Railway Labor Board ordered a wage cut of 12%, provoking a two0 month strike. The veterans organized in groups like the American Legion to get their money.
America Seeks Benefits Without Burdens
Know: Unofficial Observers, Charles Evans Hughes, Five-Power Naval Treaty, Four-Power Treaty, Nine-Power Treaty, Kellogg-Briand Pact
4. How did the U.S. take the lead in disarmament in the 20's?
A disarmament conference was held and all major powers were invited except Russia. Hughes suggested the Five Power Treaty that set up the 5:5:3 ratio (America, Britain, Japan). The Four Power Treaty was also made that required Britain, Japan, France, and the U.S. to keep the status quo in the Pacific. The Nine Power Treaty kept the Open Door policy with China (free trade for all). The Kellogg- Briand Pact was also made which outlawed war. 62 nations signed this pact.
Hiking the Tariff Higher
Know: Fordney-McCumber Tariff Law
5. What effects were produced by high American tariffs?
The Fordney- McCumber Tariff Law increased the tariff rates from 27% to 38.5%. This made Europe not be able to pay back its debts for World War 1. Europe owed money to the U.S. for WW1, in order to pay it back, they needed to export, but the U.S. tariff crippled those exports. Therefore the money was not being paid back.
The Stench of Scandal
Know: Charles R. Forbes, Albert B. Fall, Teapot Dome, Harry M. Daugherty
6. "Such was his [Harding's] weakness that he tolerated people and conditions that subjected the Republic to its worst disgrace since the days of President Grant." Explain
President Harding was an honest man but his administration was not. He was naïve. Charles Forbes pocketed money as chief of the Veterans Bureau. He took $200 million while building veterans hospitals. He spent 2 years in jail. There was the Teapot Dome Scandal that involved oil. Harding’s Secretary of Interior Albert Fall was in charge of managing natural resources. He discovered oil in Wyoming and sneakily placed the land under his power. He then accepted bribes for oil drilling rights from Doheny and Sinclair for a lot of money. Doheny and Sinclair were both exonerated but Fall served one year in jail. Attorney General Harry Daugherty was selling pardons and liquor permits during prohibition time.
“Silent Cal” Coolidge
Know: Calvin Coolidge
7. Do the nicknames, "Silent Cal" and "Cautious Cal" accurately describe the Coolidge presidency?
Yes. President Coolidge was serious, calm, shy, moral, boring, and unlike most politicians, didn’t speak much. He was seen as Silent Cal because in the Twenties, “The Age of Ballyhoo” and the “Jazz Age” they had a very traditional and old- timey president.
Frustrated Farmers
Know: McNary-Haugen Bill
8. What had changed for the farmer since 1890? What had remained the same?
During World War 1, the farmers enjoyed the boom and were encouraged to grow surplus crops. They were earning good money. However, after the war, new technologies such as the tractor made farm work easier and the prices decreased. Farmers fell into tough times. The Capper Volstead Act was passed, exempting farmer cooperatives from antitrust laws. The McNary Haugen Bill tried to keep the price of the agricultural goods high.
A Three-Way Race for the White House in 1924
Know: Robert La Follette
9. Why did Calvin Coolidge easily win the 1924 election?
Robert La Follette was nominated by the Progressive part and received a whopping 5 million votes and John W. Davis was nominated by the Democrats. The Democrats had a hard time defining themselves and failed to condemn the K.K.K. Also, because times were still good, Coolidge was easily re-elected.
Foreign-Policy Flounderings
10. What are the arguments for America canceling the WWI debt of European countries?
Isolation continued to reign in the Coolidge era. America had loaned $10 billion to the Allies during the war. Uncle Sam wanted to be paid back. America argued that they should write off its loans as war costs, just as the Allies had been tragically forced to write off the lives of millions of young men. The debtors also complained that the real effect of their borrowed dollars had been to fuel the boom in the already roaring wartime economy in America, where nearly all their purchases had been made. America’s postwar tariff walls made it almost impossible for them to sell goods to earn dollars to pay their debts.
Unraveling the Debt Knot
Know: Dawes Plan
11. What were the world-wide repercussions of America’s insistence on debt repayment?
America’s tightfisted insistence on getting its money back helped to harden the hearts of the allies against conquered Germany. They placed a huge price-tag onto Germany who certainly could not pay. Germany printed masses of paper money and created inflation which made money worthless. Charles Dawes came up with the Dawes Plan for payments. America would loan money to German, Germany would make payments to Britain and France, and then they would repay their loans to America. This was a circle of money. The U.S. never got repaid.
The Triumph of Herbert Hoover, 1928
Know: Al Smith, "Rum, Romanism, and Ruin"
12. Why was Herbert Hoover so much more popular with voters than Al Smith?
Hoover spoke of “Rugged Individualism” which was his view that America was made great by strong, self-sufficient individuals, like the pioneers of the old days. Alfred Smith was unpopular, making the election easy for Hoover because he was an Irish- Catholic, a city-slicker, a drinker during the days of prohibition, and had a New York accent that did not sound good on radio.
President Hoover's First Moves
Know: Farm Board, Hawley-Smoot Tariff
13. Did Hoover’s attempts to help farmers produce positive results? Explain.
No. Hoover enjoyed the economic prosperity of the day. He got the Agricultural Marketing Act passed which setup a Federal Farm Board which was to lend money to farmers. The Hawley-Smoot Tariff hiked up to 60%. To other nations, this was like an economic act of war. This increase had negative effects because it went against the trend towards lower tariffs, it would slow trade and deepen the depression when it hit, and it helped move the U.S. to full-fledged isolationism, allowing Hitler to rise to power.
The Great Crash Ends the Golden Twenties
Know: Black Tuesday, "Brother Can You Spare a Dime?"
14. What were the immediate effects of the stock market crash?
Businesses began to go out of business, unemployment shot up, over 5,000 banks went bankrupt as people withdrew their money in fear, and the only things growing were soup kitchens and homeless shelters. People were panicking.
Hooked on the Horn of Plenty
Know: Hoover Blankets, Hoovervilles
15. What causes contributed to the Great Depression?
One basic explanation of what caused the Great Depression was overproduction by both farm and factory. The nation’s ability to produce goods had clearly outrun its capacity to consume of pay for them. Too much money was going into the hands of a few wealthy people, who in turn invested in factories and other agencies of production. Not enough was going to salaries and wages, where revitalizing purchasing power could be more quickly felt. Also, the failure of the Vienna banking house in Europe created a chain reaction financial collapse. This failure was hastened by the Hawley-Smoot Tariff.
Rugged Times for Rugged Individualists
Know: Rugged Individualism, The Great Humanitarian
16. How did President Hoover’s beliefs affect the way he handled the Depression?
Hoover’s “ruffed individualist” nature made him slow to take any government action. His solution was to just wait it out. He did not agree with laissez-faire and did not pass measures that could have made the Depression less severe. He did not handle the Depression the way the people wanted him to.
Hoover Battles the Great Depression
Know: Muscle Shoals Bill, Reconstruction Finance Corporation, Pump-Priming, Yellow Dog Contracts
17. Is Hoover’s reputation as ultra-conservative well deserved? Explain.
Hoover’s reputation for being a prominent conservative is justified. He took actions against the Bonus Army, had an Anti Lassiez-Faire ideology, initiated the prosecution of gangsters, and did not support civil rights. He also vetoed the Muscle Shoals Bill to dam the Tennessee River.
Routing the Bonus Army in Washington
Know: Bonus Expeditionary Force, Douglas MacArthur
18. What happened to the Bonus Army? Why?
World War 1 veterans were still clamoring for bonuses for saving the world for democracy. The Bonus Expeditionary Force was drummed up and consisted of 20,000 people who marched to Washington, set up camp, and demanded their bonuses. MacArthur was ordered to evict the BEF. He used bayonets, tear gas, and fire, injuring 1000 civilians.
Japanese Militarists Attack China
Know: Manchuria, Stimson Doctrine
19. How did the Japanese attack on Manchuria demonstrate the weakness of the League of Nations?
The Japanese took advantage of the depression to capture Manchuria. Both the US and the League of Nations wanted to take action as Japanese moves violated “fair play” and more importantly, the open door policy. However, the League, without US membership, and with most countries in depression, was powerless to do anything. Despite their ability to do so, the League was hesitant to stop Japan since they were not confident on American support.
Hoover Pioneers the Good Neighbor Policy
20. What was President Hoover’s policy toward Latin America?
Hoover sought to seek a friendlier yet more passive relationship with Latin American countries by taking away the Roosevelt Corollary. The policies were well met and as the depression struck American had no intention to resume the economic imperialism they once pursued. Thus, the creation of the “Good Neighbor” policy soon was met with opposition from FDR.
Andrew Mellon: Secretary of Treasury under President Harding, Coolidge and Hoover, who instituted a Republican policy of reduced government spending, lower taxes to the wealthy and higher tariffs.
Herbert Hoover: President during the time of the Great Depression; Republican candidate who assumed the presidency in March 1929 promising the American people prosperity and attempted to first deal with the Depression by trying to restore public faith in the community.
Albert B. Fall: He was Secretary of the Interior during Harding's administration, and was a scheming anti-conservationist. He was convicted of leasing naval oil reserves and collecting bribes, which was called the Tea Pot Dome scandal.
Robert LaFollette: Republican Senator from Wisconsin - ran for president under the Progressive Party - proponent of Progressivism and a vocal opponent of railroad trusts, bossism, World War I, and the League of Nations.
Alfred E. Smith: He was the Democratic presidential candidate in the 1928 election. He was the first Catholic to be elected as a candidate. Former governor of New York who ran for President against Herbert Hoover. He was against Prohibition.
Ohio Gang: A group of poker-playing, men that were friends of President Warren Harding. Harding appointed them to offices and they used their power to gain money for themselves. They were involved in scandals that ruined Harding's reputation even though he wasn't involved.
Washington Conference: 1921 – President Harding invited delegates from Europe and Japan, and they agreed to limit production of war ships, to not attack each other's possessions, and to respect China's independence
Kellogg-Briand Pact: Agreement signed in 1928 in which nations agreed not to pose the threat of war against one another; no way of enforcing peace.
Fordney-McCumber Tariff Law: This tariff rose the rates on imported goods in the hopes that domestic manufacturing would prosper. This prevented foreign trade, which hampered the economy since Europe could not pay its debts if it could not trade; raised tax on imports to 60%.
Teapot Dome Scandal: A government scandal involving a former United States Navy oil reserve in Wyoming that was secretly leased to a private oil company in 1921.
Dawes Plan: A plan to revive the German economy, the United States loans Germany money which then can pay reparations to England and France, who can then pay back their loans from the U.S.
Hawley-Smoot Tariff: Charged a high tax for imports thereby leading to less trade between America and foreign countries along with some economic retaliation.
Reconstruction Finance Corporation (RFC): Congress set up $2 billion. It made loans to major economic institutions such as banks, insurance companies and railroads.
Bonus Army: Unemployed World War I veterans who came to Washington in the spring of 1932 to demand the immediate payment of the bonus congress had voted them in 1922. The veterans were forcibly removed from Anacostia Flats by federal troops under the command of Douglas MacArthur.
Hoover-Stimson doctrine: 1932, Hoover's Secretary of State said the US would not recognize territorial changes resulting from Japan's invasion of Manchuria.
Chapter #32 Identifications
The Republican "Old Guard" Returns
Know: Warren Harding, Ohio Gang
1. What flaws did Warren Harding possess?
Warren Harding was tall, handsome, silver- haired and was friendly and popular. However, he was of average intelligence and was very gullible. He was not able to tell who was telling the truth and who was a liar.
GOP Reaction at the Throttle
2. What pro-business policies were taken by the government during the Harding administration.
The court case Adkins v. Children’s Hospital, reversed the reasoning of Muller v. Oregon. It erased the women’s protection at work and wiped out a minimum wage law for women. The Interstate Commerce Commission was set up to regulate the railroads. It was made up of men sympathetic to the railroad managers. The new Old Guard also hoped to improve on the old business doctrine of laissez- faire. Their plea was not simply for government to keep their hands off business, but for the government to help guide business along the path to profits. They accomplished this subtly and effectively.
The Aftermath of War
Know: Railway Labor Board, American Legion, Adjusted Compensation Act
3. What effects did the war have on the post-war economy?
The War Industries Board disappeared and progressive hopes for more government regulation of big business evaporated. Congress passed the Esch- Cummins Transportation Act, which encouraged private consolidation of the railroads and pledged to the Interstate Commerce
Commission to guarantee their profitability. Labor, suddenly deprived of its wartime crutch of friendly government support, limped along badly in the postwar decade. The Railway Labor Board ordered a wage cut of 12%, provoking a two0 month strike. The veterans organized in groups like the American Legion to get their money.
America Seeks Benefits Without Burdens
Know: Unofficial Observers, Charles Evans Hughes, Five-Power Naval Treaty, Four-Power Treaty, Nine-Power Treaty, Kellogg-Briand Pact
4. How did the U.S. take the lead in disarmament in the 20's?
A disarmament conference was held and all major powers were invited except Russia. Hughes suggested the Five Power Treaty that set up the 5:5:3 ratio (America, Britain, Japan). The Four Power Treaty was also made that required Britain, Japan, France, and the U.S. to keep the status quo in the Pacific. The Nine Power Treaty kept the Open Door policy with China (free trade for all). The Kellogg- Briand Pact was also made which outlawed war. 62 nations signed this pact.
Hiking the Tariff Higher
Know: Fordney-McCumber Tariff Law
5. What effects were produced by high American tariffs?
The Fordney- McCumber Tariff Law increased the tariff rates from 27% to 38.5%. This made Europe not be able to pay back its debts for World War 1. Europe owed money to the U.S. for WW1, in order to pay it back, they needed to export, but the U.S. tariff crippled those exports. Therefore the money was not being paid back.
The Stench of Scandal
Know: Charles R. Forbes, Albert B. Fall, Teapot Dome, Harry M. Daugherty
6. "Such was his [Harding's] weakness that he tolerated people and conditions that subjected the Republic to its worst disgrace since the days of President Grant." Explain
President Harding was an honest man but his administration was not. He was naïve. Charles Forbes pocketed money as chief of the Veterans Bureau. He took $200 million while building veterans hospitals. He spent 2 years in jail. There was the Teapot Dome Scandal that involved oil. Harding’s Secretary of Interior Albert Fall was in charge of managing natural resources. He discovered oil in Wyoming and sneakily placed the land under his power. He then accepted bribes for oil drilling rights from Doheny and Sinclair for a lot of money. Doheny and Sinclair were both exonerated but Fall served one year in jail. Attorney General Harry Daugherty was selling pardons and liquor permits during prohibition time.
“Silent Cal” Coolidge
Know: Calvin Coolidge
7. Do the nicknames, "Silent Cal" and "Cautious Cal" accurately describe the Coolidge presidency?
Yes. President Coolidge was serious, calm, shy, moral, boring, and unlike most politicians, didn’t speak much. He was seen as Silent Cal because in the Twenties, “The Age of Ballyhoo” and the “Jazz Age” they had a very traditional and old- timey president.
Frustrated Farmers
Know: McNary-Haugen Bill
8. What had changed for the farmer since 1890? What had remained the same?
During World War 1, the farmers enjoyed the boom and were encouraged to grow surplus crops. They were earning good money. However, after the war, new technologies such as the tractor made farm work easier and the prices decreased. Farmers fell into tough times. The Capper Volstead Act was passed, exempting farmer cooperatives from antitrust laws. The McNary Haugen Bill tried to keep the price of the agricultural goods high.
A Three-Way Race for the White House in 1924
Know: Robert La Follette
9. Why did Calvin Coolidge easily win the 1924 election?
Robert La Follette was nominated by the Progressive part and received a whopping 5 million votes and John W. Davis was nominated by the Democrats. The Democrats had a hard time defining themselves and failed to condemn the K.K.K. Also, because times were still good, Coolidge was easily re-elected.
Foreign-Policy Flounderings
10. What are the arguments for America canceling the WWI debt of European countries?
Isolation continued to reign in the Coolidge era. America had loaned $10 billion to the Allies during the war. Uncle Sam wanted to be paid back. America argued that they should write off its loans as war costs, just as the Allies had been tragically forced to write off the lives of millions of young men. The debtors also complained that the real effect of their borrowed dollars had been to fuel the boom in the already roaring wartime economy in America, where nearly all their purchases had been made. America’s postwar tariff walls made it almost impossible for them to sell goods to earn dollars to pay their debts.
Unraveling the Debt Knot
Know: Dawes Plan
11. What were the world-wide repercussions of America’s insistence on debt repayment?
America’s tightfisted insistence on getting its money back helped to harden the hearts of the allies against conquered Germany. They placed a huge price-tag onto Germany who certainly could not pay. Germany printed masses of paper money and created inflation which made money worthless. Charles Dawes came up with the Dawes Plan for payments. America would loan money to German, Germany would make payments to Britain and France, and then they would repay their loans to America. This was a circle of money. The U.S. never got repaid.
The Triumph of Herbert Hoover, 1928
Know: Al Smith, "Rum, Romanism, and Ruin"
12. Why was Herbert Hoover so much more popular with voters than Al Smith?
Hoover spoke of “Rugged Individualism” which was his view that America was made great by strong, self-sufficient individuals, like the pioneers of the old days. Alfred Smith was unpopular, making the election easy for Hoover because he was an Irish- Catholic, a city-slicker, a drinker during the days of prohibition, and had a New York accent that did not sound good on radio.
President Hoover's First Moves
Know: Farm Board, Hawley-Smoot Tariff
13. Did Hoover’s attempts to help farmers produce positive results? Explain.
No. Hoover enjoyed the economic prosperity of the day. He got the Agricultural Marketing Act passed which setup a Federal Farm Board which was to lend money to farmers. The Hawley-Smoot Tariff hiked up to 60%. To other nations, this was like an economic act of war. This increase had negative effects because it went against the trend towards lower tariffs, it would slow trade and deepen the depression when it hit, and it helped move the U.S. to full-fledged isolationism, allowing Hitler to rise to power.
The Great Crash Ends the Golden Twenties
Know: Black Tuesday, "Brother Can You Spare a Dime?"
14. What were the immediate effects of the stock market crash?
Businesses began to go out of business, unemployment shot up, over 5,000 banks went bankrupt as people withdrew their money in fear, and the only things growing were soup kitchens and homeless shelters. People were panicking.
Hooked on the Horn of Plenty
Know: Hoover Blankets, Hoovervilles
15. What causes contributed to the Great Depression?
One basic explanation of what caused the Great Depression was overproduction by both farm and factory. The nation’s ability to produce goods had clearly outrun its capacity to consume of pay for them. Too much money was going into the hands of a few wealthy people, who in turn invested in factories and other agencies of production. Not enough was going to salaries and wages, where revitalizing purchasing power could be more quickly felt. Also, the failure of the Vienna banking house in Europe created a chain reaction financial collapse. This failure was hastened by the Hawley-Smoot Tariff.
Rugged Times for Rugged Individualists
Know: Rugged Individualism, The Great Humanitarian
16. How did President Hoover’s beliefs affect the way he handled the Depression?
Hoover’s “ruffed individualist” nature made him slow to take any government action. His solution was to just wait it out. He did not agree with laissez-faire and did not pass measures that could have made the Depression less severe. He did not handle the Depression the way the people wanted him to.
Hoover Battles the Great Depression
Know: Muscle Shoals Bill, Reconstruction Finance Corporation, Pump-Priming, Yellow Dog Contracts
17. Is Hoover’s reputation as ultra-conservative well deserved? Explain.
Hoover’s reputation for being a prominent conservative is justified. He took actions against the Bonus Army, had an Anti Lassiez-Faire ideology, initiated the prosecution of gangsters, and did not support civil rights. He also vetoed the Muscle Shoals Bill to dam the Tennessee River.
Routing the Bonus Army in Washington
Know: Bonus Expeditionary Force, Douglas MacArthur
18. What happened to the Bonus Army? Why?
World War 1 veterans were still clamoring for bonuses for saving the world for democracy. The Bonus Expeditionary Force was drummed up and consisted of 20,000 people who marched to Washington, set up camp, and demanded their bonuses. MacArthur was ordered to evict the BEF. He used bayonets, tear gas, and fire, injuring 1000 civilians.
Japanese Militarists Attack China
Know: Manchuria, Stimson Doctrine
19. How did the Japanese attack on Manchuria demonstrate the weakness of the League of Nations?
The Japanese took advantage of the depression to capture Manchuria. Both the US and the League of Nations wanted to take action as Japanese moves violated “fair play” and more importantly, the open door policy. However, the League, without US membership, and with most countries in depression, was powerless to do anything. Despite their ability to do so, the League was hesitant to stop Japan since they were not confident on American support.
Hoover Pioneers the Good Neighbor Policy
20. What was President Hoover’s policy toward Latin America?
Hoover sought to seek a friendlier yet more passive relationship with Latin American countries by taking away the Roosevelt Corollary. The policies were well met and as the depression struck American had no intention to resume the economic imperialism they once pursued. Thus, the creation of the “Good Neighbor” policy soon was met with opposition from FDR.