Podcast Beta
Questions and Answers
What was one of the reasons why Hoover is incorrectly thought to have done nothing during the Great Depression?
Which event led America's trading partners to retaliate and cut American exports in half?
What was a key factor that contributed to the deepening of the Great Depression according to the text?
What did Hoover do in response to industry breaking the wage agreement at the end of 1931?
Signup and view all the answers
Which statement best reflects Hoover's and Roosevelt's beliefs regarding government intervention in the economy?
Signup and view all the answers
Study Notes
- Herbert Hoover, the 31st President of the United States, is often associated with the Great Depression after the stock market crash in October 1929
- Hoover, a Republican and a small government advocate, is incorrectly believed to have done nothing during the economic downturn that followed
- However, Hoover's interventionist policies and persistent meddling worsened the situation
- Hoover was a mining engineer before becoming a politician, and he believed that almost anything could be engineered, incl. the economy
- In November 1929, Hoover called a meeting with major American industry CEOs to maintain wage rates and minimize layoffs
- Henry Ford, Alfred Sloan, and Pierre Dupont attended the meeting and agreed to maintain wages and avoid strikes and layoffs in return
- Hoover promised to convince workers to accept the agreement, and he kept his promise
- However, the prices for industrial goods declined due to the overall economic deflation and the Federal Reserve's tight money policy, leading to reduced sales and lower profits
- Hoover signed the Smoot-Hawley Tariff Act of 1930, raising tariffs on imports, which led America's trading partners to retaliate and cut American exports in half
- With American exports shrinking, the prices of American industrial goods declined sharply, and the Depression deepened
- Industry broke the deal by cutting wages and increasing layoffs by the end of 1931, and Hoover was unable to prevent the economic freefall
- Hoover countered by increasing government spending and offering a nine-point plan that included major public works projects but failed to revive the economy
- Both Hoover and Franklin Roosevelt believed in strong government intervention into the economy, despite the commonly-held view that their economic policies were vastly different
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge on Herbert Hoover's response to the Great Depression, including his interventionist policies, the Smoot-Hawley Tariff Act, and the impact on American industry. Learn about Hoover's attempts to engineer the economy and his collaboration with major industry CEOs.
