according to hoover, what was the best course of action to take on the great depression

Full Answer

What was President Hoover's solution to the Great Depression?

Hoover's solution to the Great Depression included the policy of associationalism, an international resolution, and expanding the federal government. Unfortunately, it was not enough, as Hoover failed to end the largest economic collapse in United States history.

What was the best course of action during the Great Depression?

Because the Central bankers in Europe and America refused to let go of the gold standard. According to Hoover, what was the best course of action to take on the Great Depression? Was to use the powers of government, to cushion the situation. And in a W.H. meeting, he persuaded a large number of Industrialists who agreed to maintain wage rights.

What was the best course of action according to Hoover?

According to Hoover, what was the best course of action to take on the Great Depression? Was to use the powers of government, to cushion the situation. And in a W.H. meeting, he persuaded a large number of Industrialists who agreed to maintain wage rights.

How did the Hoover Tariff Act cause the Great Depression?

In an overly aggressive move, Hoover established protective tariffs, known as the Smoot-Hawley Tariff Act, or Tariff Act, to protect agricultural goods, balance the world markets and back the international gold standard. This precarious move proved to be futile and potentially worsened the Depression.

What was the best course of action to take on the Great Depression?

Instead, Hoover believed that the best course of action was to "use the powers of government to cushion the situation", and in a White House meeting, he persuaded a large number of industrialists to agree to maintain wage rates.

What did President Hoover believe the best course of action was for the government to combat the Great Depression 1929 1939 )?

What did Hoover believe to be the potential solution to the social crisis that emerged from the Great Depression? He believed that volunteer efforts by generous Americans and charitable groups would provide adequate relief.

What was Hoover's philosophy to combat the Great Depression?

President Hoover's deeply held philosophy of American individualism, which he maintained despite extraordinary economic circumstances, made him particularly unsuited to deal with the crisis of the Great Depression. He greatly resisted government intervention, considering it a path to the downfall of American greatness.

What was Hoover's solution to the Great Depression quizlet?

Hoover thought Public works projects, the thinking went, would create new jobs. Hoover also relied on charities to help the needy and end the crisis. Also he used Laissez Faire or "hands off" government; business will take care of themselves and the government will not interfere.

What was President Hoover known for?

He was influential in the development of air travel and radio. He led the federal response to the Great Mississippi Flood of 1927. Hoover won the Republican nomination in the 1928 presidential election, and defeated Democratic candidate Al Smith in a landslide.

What was Hoover's philosophy of government quizlet?

What was Hoover's philosophy of government? Hoover believed that the federal government could not give direct aid to individuals. He believed in free market capitalism and did not think the constitution gave the federal government the power to set prices.

What was President Hoover's first response to the Depression quizlet?

What was Herbert Hoover's initial response to the Depression in 1929? He signed the Smoot Hawley Tariff Act that raised import taxes. It froze international trade; raised income taxes; called on business leaders urging them not to lay off workers.

How did President Hoover respond to the problems and challenges created by the Great Depression quizlet?

How did President Hoover respond to the problems and challenges created by the Great Depression? Hoover brought traditional and progressive ideas and relied on volunteerism to get the country through tough times.

How did Hoover respond to the 1929 stock market crash?

action." Since the crash, Hoover had worked ceaselessly trying to fix the economy. He founded government agencies, encouraged labor harmony, supported local aid for public works, fostered cooperation between government and business in order to stabilize prices, and struggled to balance the budget.

What is a small, individual institution that had to rely on their own resources?

banks were small, individual institutions that had to rely on their own resources. When

Was the stock market crash the same as the depression?

the stock market crash and the depression were not the same thing. A lot of rich people

Was the end of 1929 okay?

1930 or 1931. The end of 1929 was actually okay. Unless

Did the Hoover Administration have a TARDIS?

the Hoover Administration did not have a TARDIS. John Maynard Keynes’ great work The General

Who was responsible for the Great Depression?

With the onset of the Great Depression in 1929, President Herbert Hoover pursued various remedies aimed at reversing the course of the economic malady within the United States. While Hoover was partially responsible for contributing to the Depression, his attempts at curtailing the downturn were notable.

What was Herbert Hoover's main idea?

Yet, since many of his other ideas at rejuvenating the American economy had failed, he decided to approve limited-expansion measures. For instance, he approved the creation of the Reconstruction Finance Corporation to provide loans to various institutions that were willing to construct low-cost public facilities. Hoover took additional measures in financing home construction as well.

What was the opposition to Hoover?

Opposition to Hoover. Many took exception to Hoover's failed attempts at ending the Depression and his denigration of those Americans who were suffering. Many liberals rejected the Hoover Administration outright and began looking toward Russia for advice and assistance.

Why did Hoover establish the Smoot-Hawley Tariff Act?

In an overly aggressive move, Hoover established protective tariffs, known as the Smoot-Hawley Tariff Act, or Tariff Act, to protect agricultural goods, balance the world markets and back the international gold standard. This precarious move proved to be futile and potentially worsened the Depression.

How did Herbert Hoover reverse the economic tide?

Hoover's first attempt to reversing the economic tide in the nation was through the issuance of his policy of associationalism. This idea encouraged all individuals within the United States to begin working together to solve their common economic issues in the hope that smaller collaboration could provide a larger and permanent remedy to the Depression. Farmers, laborers, financiers and businessmen were expected to work in unison to aid the nation's recovery; not to mention, Hoover hoped that this banding of various personalities would lead to a renewed sense of national pride.

Why did Hoover expect farmers, laborers, financiers and businessmen to work in unison?

Farmers, laborers, financiers and businessmen were expected to work in unison to aid the nation's recovery; not to mention, Hoover hoped that this banding of various personalities would lead to a renewed sense of national pride.

Why did farmers and laborers lower production?

Farmers and laborers had to lower production in order to prevent the market from being flooded with goods, and bankers were encouraged to manage funds wisely and limit loan distribution. On paper, this was a noble concept, especially if the policy could usher in a positive zeitgeist.

What did Herbert Hoover do to help the unemployed?

In 1931, Hoover formed the President’s Organisation of Unemployment Relief (POUR) which assisted state and private charities such as the Red Cross and Salvation Army in coordinating relief programs and forming employment councils that tied the unemployed to job opportunities. The organization did not see much success as Hoover refused to spend government money and by the end of 1932, the organization was dissolved, creating barely 100,000 jobs at a time when 15 million were unemployed. Congress also proposed the Federal Emergency Relief Bill which would have provided states $375 million to provide food, clothing, and shelter to the homeless but Hoover opposed the bill stating that it would harm the balance of power between states and the Federal government.

What decade was the Great Depression?

The optimism of the 1920s crashed spectacularly, the Roaring Twenties, as the decade was fondly remembered, gave way to the Great Depression of the 1930s.

What did Herbert Hoover believe?

Hoover was a conservative Republican who believed in limited Government intervention and letting the natural process of supply and demand ensure in the market. He was convinced that Government handouts would weaken individual character and turn people away from work and refused to intervene. Hoover was a firm believer in rugged individualism, that people are responsible for their own success or failure and it is not the responsibility of the government. Instead, the administration decided to leave the relief work to volunteer organizations and charities, the issue was that these charities also saw their donations dwindle.

What was the impact of the Revenue Act of 1932 on the economy?

The Revenue Act of 1932, raised income taxes and corporate income taxes dramatically with the bracket ranging from 36% to 63%. The most important and consequential of these policies was the Glass-Steagall Act of 1932, that approved lending of credit by the regional Federal Reserve Bank to private banks. These policies reformed the way in which the Federal Government responds to an economic crisis, but besides the Public Works Administration, none of the policies improved the condition of American workers. His signing of the Smoot-Hawley Tariffs Act and opposition of the Emergency Bill had created an image that cast Hoover as uncaring about the anguish of his people and his new programs were viewed as too little or too late and his popularity had already nosedived.

How did Hoover lose the election?

Unsurprisingly, Hoover lost the election in a landslide, losing in 42 out of the then 48 states. To his credit, however, Hoover had to face a crisis no American President had faced before. His initiation of large Public Works Programs and expansion of the role of Federal reserve, though deeply structurally flawed, was the most radical step that a President had ever undertaken in response to a recession.

What was the unemployment rate in 1929?

Between 1929 and 1933, industrial production fell 47%, GDP declined by 30% and unemployment skyrocketed to 20 percent . Soon, shanty towns and encampments came up for the homeless, mockingly called the Hoovervilles over the President's inaction to respond to the crisis.

What was the theory of economics in the 1920s?

In the 1920s, classical economics was undisputed, and it was generally accepted that output and prices would return to a state of equilibrium in due time but as the depression carried on, it was evident that the classical school of thought did not work.

When did the Great Depression start?

Many people tell you that the Great Depression started with the stock market crash in October 1929, but a) that isn't true, and b) it leads people to mistake correlation with cause. What we think of as the Great Depression did begin after the stock market crash but not because of it.

What was the cause of the Great Depression?

He claimed that its primary cause was World War I and, to be fair, the war did set the stage for a global economic disaster because of the web of debts and reparations that it created.

How many banks failed in 1931?

By the end of 1931, 2294 American banks had failed - double the number that had gone under in 1930. Now, it's easy to criticize poor Herbert Hoover for not doing enough to stop the Great Depression, and he probably didn't do enough, but part of that is down to our knowledge of what happened afterward - the New Deal.

How many Americans owned stock in 1930?

Only 3% of Americans actually owned stock, and the markets recovered a lot of their value by 1930, although they did then go down again because, you know, there was a depression on. And even though big banks and corporations were buying a lot of stock, much of it was with borrowed money known as margin buying, and all of that still was not nearly a big enough iceberg to sink the world's economy.

How many people were out of work in 1932?

By early 1932, well over 10 million people were out of work - 20% of the labor force. And in big cities the numbers were even worse, especially for people of color. Like in Chicago, 4% of the population was African-American, but they made up more than 16% of the unemployed.

What were the protests like the Bonus March on Washington?

There were shanty towns for the homeless called "Hoovervilles" and there were protests like the Bonus March on Washington by veterans seeking an early payment of a bonus due to them in 1945.

What happened in 1930?

So, in 1930, a wave of bank failures began in Louisville that then spread to Indiana, Illinois, Missouri and, eventually, Arkansas and North Carolina. As depositors lined up to take their money out before the banks went belly-up, banks called in loans and sold assets.

What were the progressives shifting the country away from?

They were shifting the country away from the economic regulation, that had been favored by progressives.

What led many farmers to meccanize their operations?

The expansion led many farmers to meccanize their operations.

What was the largest private organization in Indiana in the mid-twenties?

The decade saw the resurgence of the Klu Klux Klan in a new and improved form, but not that improved towards us people.And by the mid-twenties, the Klan became the largest private organization in Indiana.

Why was the Wright Patman Bill created?

in 1932. They were veterans of World War 1. The Wright Patman Bill was created to pay a bonus to WW1 veterans immediately. These veterans wanted bills like this to become law.

What did it mean when there was a bull market in the 20s?

There was a Bull market for most of the twenties, this meant there were rising stock prices and many investors were reaping profits.

When did stocks fall?

Stocks began to fell in value dramatically in 1929. Many people panicked and moved their money out of banks. On "Black Tuesday", October 29, 1929, as stocks fell, many tried to sell their stocks. Yet, it was too late.

What was the effect of the Great Depression on the economy?

economy was the factor that pulled down most other countries at first; then, internal weaknesses or strengths in each country made conditions worse or better.

Who wrote the Great Depression?

Two prominent theorists in the Austrian School on the Great Depression include Austrian economist Friedrich Hayek and American economist Murray Rothbard, who wrote America's Great Depression (1963). In their view, much like the monetarists, the Federal Reserve (created in 1913) shoulders much of the blame; however, unlike the Monetarists, they argue that the key cause of the Depression was the expansion of the money supply in the 1920s which led to an unsustainable credit-driven boom.

What happened in 1930?

By May 1930, automobile sales declined to below the levels of 1928. Prices, in general, began to decline, although wages held steady in 1930. Then a deflationary spiral started in 1931. Farmers faced a worse outlook; declining crop prices and a Great Plains drought crippled their economic outlook.

How much was unemployment in Britain in 1937?

By 1937, unemployment in Britain had fallen to 1.5 million. The mobilization of manpower following the outbreak of war in 1939 ended unemployment. When the United States entered the war in 1941, it finally eliminated the last effects from the Great Depression and brought the U.S. unemployment rate down below 10%.

How did the Smoot-Hawley Tariff Act affect the Great Depression?

Most historians and economists blame this Act for worsening the depression by seriously reducing international trade and causing retaliatory tariffs in other countries. While foreign trade was a small part of overall economic activity in the U.S. and was concentrated in a few businesses like farming, it was a much larger factor in many other countries. The average ad valorem rate of duties on dutiable imports for 1921–1925 was 25.9% but under the new tariff it jumped to 50% during 1931–1935. In dollar terms, American exports declined over the next four years from about $5.2 billion in 1929 to $1.7 billion in 1933; so, not only did the physical volume of exports fall, but also the prices fell by about 1⁄3 as written. Hardest hit were farm commodities such as wheat, cotton, tobacco, and lumber.

Why did China abandon the silver standard?

silver purchase act of 1934 created an intolerable demand on China's silver coins, and so, in the end, the silver standard was officially abandoned in 1935 in favor of the four Chinese national banks' "legal note" issues. China and the British colony of Hong Kong, which followed suit in this regard in September 1935, would be the last to abandon the silver standard. In addition, the Nationalist Government also acted energetically to modernize the legal and penal systems, stabilize prices, amortize debts, reform the banking and currency systems, build railroads and highways, improve public health facilities, legislate against traffic in narcotics and augment industrial and agricultural production. On November 3, 1935, the government instituted the fiat currency (fapi) reform, immediately stabilizing prices and also raising revenues for the government.

How did the Great Depression affect the world?

The Great Depression had devastating effects in both rich and poor countries. Personal income, tax revenue, profits and prices dropped, while international trade fell by more than 50%.