Hoover's attempts at dealing with the Depression

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  • Created by: Meg_
  • Created on: 06-06-13 19:19
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  • Attempts of Hoover to deal with the Depression
    • Hoover believed that voluntary cooperation between business leaders and the government would solve the crisis.
      • He set up meetings with business leaders to make agreements that they would keep up employment and production levels.
    • Hoover provided $400 million for construction projects.
      • Short term jobs were creating during construction
    • Hoover  reduced taxes to people had more money to spe,d.
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    • The Republican government bought food at above market prices, however this encouraged farmers to grow more and their incomes fell.
    • The Hawley Smoot tariff put taxes of 40% on industrial and agricultural goods. However, other countries retaliated and the USA couldn't export so farmers were left with surpluses.
    • Hoover believed that helping the poor was the role of local governments and communities. By 1931 cities were bankrupt because of the relief programmes they were running.
    • Hoover approved the Emergency Relief act in 1931 which provided $300 million to help the unemployed. This was not enough for the whole country.
    • In 1931 Hoover set up the Reconstruction Finance Corporation which gave loans of $1500 million to businesses.
  • Long term jobs were created due to the upkeep of the new construction projec
  • In 1931 construction on the Hoover Dam began.

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