Great Depression: Herbert Hoover’s Response

Hoover
• He succeeded Coolidge in 1929
• Emphasized that the country’s growth and need to continue laissez-faire Republican strategies that had led to the booming growth of the late 20s
• Hoover thought Americans should depend on what he called their “rugged individualism”, depending upon themselves to get by and not by being bailed out by others
• He proposed cutting individual income taxes
• Proposed a program of public building project to jumpstart the economy and stalled businesses.
• Gave government aid to the railroads, banks, and rural credit associations to help stabilize the financial system and he hoped the benefits would tricked down to the average American
• He remained fearful that direct aid would destroy the idea of self-help and create a permanent class of people that looked for the government for help.
• Hoover deplored government handouts since he believed that industry would ultimately prevail

Mexican Repatriation (1929)
• Combat unemployment by reducing job competition
• Reduce the strain on municipal and other government services
• Strike at those seen as people who took American jobs from tax-paying Americans
• Major targets: Texas, California, Illinois, Michigan and Colorado.

“Pump priming”
• the spending/providing of money in a way that leads to projects that lead to the creation of jobs, which in turn boosts the economy.

Attempts to help Farmers
• The Agricultural Marketing Act of 1929
o Buy up surpluses, store them, dispose of them rather than see commodity prices shift dramatically
• Federal Farm Board
o Did not have the authority to order reductions in agricultural produce
• Grain Stabilization Corporation
o Bought up wheat for 80 cents per bushel, while the world price was only 60 cents.

Attempts to help Businesses
• Davis Bacon Act (1931): required local governments to pay wages no less than the union wages on building projects
• Norris- LaGuardia Act: prevented courts from issuing injunctions to end strikes
• Hawley- Smoot Tariff (1930): enacted on of American’s highest rates at about 40%.
o This backfired since exports (66%) and imports decreased (61%)

“Little Bull Market”
• in December 1930, the markets did have a slight turn upwards

The Bonus Army
• The veterans wanted their money in early 1932 instead of 1944-45
• 20,000 camped outside the capital before the “march” was broken up by the US Army.

Reconstruction Finance Corporation
• $500 million was set aside for banks, life insurance companies, buildings and loans, farm mortgage associations and railroads
• states were allocated as much as $1.5 billion for public programs

Key Republican Party Policies during the 1920s Laissez-faire- lack of involvement in the economy. Small state. Deregulation of business and the stock markets Hoover’s Response to the Depression At the start – very little. Believed that it was simply a …

Issues in 1932 30,000 businesses closed Issues in 1933 -9,000 banks closed -12 million unemployed 1/4 workforce WE WILL WRITE A CUSTOM ESSAY SAMPLE ON ANY TOPIC SPECIFICALLY FOR YOU FOR ONLY $13.90/PAGE Write my sample In 3 years Family …

Price Supports Attempt to help ease farmers’ financial problems by the government buying surplus or extra crops and selling them in Europe or abroad. Great Depression The period from 1929 to 1940 in which the nation suffered from a continuous …

Public Works set up state a local building projects to help employ people Reconstruction Finance Coorporation gave federal loans to businesses, in exchange, the businness would hire workers; supported Hoover’s “Trickle Down Theory”. Didn’t work WE WILL WRITE A CUSTOM …

When was the U.S. nearing the low point of the depression? 1932 What did 15,000 WWI veterans do? set up camp near the nation’s capital – May 1932 – this can’t be good WE WILL WRITE A CUSTOM ESSAY SAMPLE …

What industrial weakness signaled a declining economy in the1920s? The older industries such as textiles, steel, and railroads, which were basic to the fundamental well-being of the economy, were barely profitable. How did diminished demand affect farmers in the 1920s? …

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