Hoover's response to the depression.
- Created by: Leo Bownas
- Created on: 11-04-13 13:48
View mindmap
- Hoover's response to the depression. 1930-32
- He reduced income tax.
- Made big businesses to keep wages high in order to encourage spending.
- This backfired as people saved, not spent.
- 1930 - Smoot - Hawley tariff increased tax on imports to get everyone to buy from America.
- This was counter productive as other countries raised their tariffs and global trade fell. USA lost money.
- Reconstruction Finance co-operation which loaned money to banks, rail-roads to save jobs.
- He hoped money would trickle down the economy. Never happened and looked as if Hoover only helped the rich.
- Created "Public Works" where he sponsored new projects like "the hoover dam" to create jobs.
- Too little too late - unemployment was still too high.
- Grain Stabilisation Co-operation tried to guarantee fair price for farmers to buy and store wheat until prices went back up.
- However the price never went up, only down and the industry crashed.
- 1932 - Revenue act sharply increased taxes on business.
- Only made spending harder for poor.
- 1930 - Didn't take immediate and drastic action because he and many others didn't think it was necessary.
Comments
No comments have yet been made