Hoover- good or bad
- Created by: aggy98
- Created on: 04-04-14 23:11
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- Hoover's response to the Depression.
- Hoover still believed in laissez faire and rugged individualism- that all people should look after themselves. This caused his limited success in helping them, as he continouslly told them that all people needed to work together to solve the depression- believing that "prosperity was just around the corner"- thus lowering people's confidence and not gaining their trust.
- It could be argued that it wasnt Hoover's fault as he gave 300 million dollars to states to help with the unemployed but republican states only used 30 million
- Hawley-Smoot Tariff raised tax levels on goods being brought into America- aimes to force people to buy americian produce to start businesses going again
- Had average duties of about 40%- ended up with other countries retaliating and there being even less us exports, leading to farmers having huge surpluses of food.
- Originally Hoover called business executives together to say that conditions were sound to prevent confidence dropping.
- Later he organized an international moratorium in war debts & reparations- though this provided only very brief relief.
- Only meant debts had to be paid later.
- Later he organized an international moratorium in war debts & reparations- though this provided only very brief relief.
- Hoovervilles, these were shantytowns filled mainly with people who were now homeless and recieving no relief from Hoover
- "Do nothing president"
- Many though he was a coward because he refused to admit that the Government needed to provide more assistance to get them out of the depression. He contiued to say that people must help themselves and that "prosperity was just around the corner"
- Hoover still believed in laissez faire and rugged individualism- that all people should look after themselves. This caused his limited success in helping them, as he continouslly told them that all people needed to work together to solve the depression- believing that "prosperity was just around the corner"- thus lowering people's confidence and not gaining their trust.
- "in Hoover we trusted and now we are busted"
- Lowered tax levels for people - seemed like a sensible idea but provided little benifit due to the amount of people who still could not afford it- lots could not even afford to keep their homes.
- In 1931 Hoover commissioned the construction of the Hoover Dam, followed by other construction projects. $4000 million was put into it's production and it provided jobs and fair wages for thousands of people.
- This was only temporary however, as the jobs ended once construction was finished and people had become too reliant on the job providing their money by this point.
- 1932 Reconstruction finance corporation gave $1500 million which was invested in businesses and banks to help restore them, but in the winter of 33 the banking system ground to a complete halt and over 5000 banks were now shut.
- In 1932 17,000 war veterans- the bonus army- camped outside the white house to claim their bonuses early. The senate ruled against this due to cost and as they would not move, Hoover called in the army under General Carter to disperse them... they used tear gas and tanks to do so. Hoover became even more unpopular after this as it was seen as unpatriotic and cruel.
- Federal Home Loan Bank Act 1932- intended to save mortages and make credit much easier... hopefully reducing the amount of debt and allowing people to recover.
- Still not enough- due to policy of rugged individualism the government did not want people to become reliant on them so loans were limited to 50%.
- Agricultural marketing act 1929The government also bought products off farmers at high prices to stimulate industry- however only led to further over-production and more poverty.
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