History The Great Depression Questions
President Herbert Hoover implemented several economic policies during the Great Depression. His approach was initially rooted in the belief that the economy would recover on its own without government intervention. However, as the crisis deepened, Hoover began to take some measures to address the economic downturn.
Hoover's economic policies during the Great Depression included:
1. Volunteerism: Hoover encouraged businesses and labor unions to voluntarily maintain wages and employment levels. He believed that cooperation between different sectors of the economy would help stabilize the situation.
2. Protective tariffs: Hoover signed the Smoot-Hawley Tariff Act in 1930, which raised tariffs on imported goods. The intention was to protect American industries and farmers from foreign competition. However, this move led to retaliatory tariffs from other countries, exacerbating the global economic downturn.
3. Public works projects: Hoover supported public works projects to stimulate the economy and create jobs. The most notable initiative was the Hoover Dam, which provided employment opportunities and generated hydroelectric power.
4. Reconstruction Finance Corporation (RFC): In 1932, Hoover established the RFC, a government agency aimed at providing loans to banks, railroads, and other businesses in order to stabilize the financial system. However, the RFC's impact was limited, as it primarily benefited larger corporations and did not reach those most affected by the Depression.
Overall, Hoover's economic policies were criticized for being too cautious and insufficient in addressing the severity of the Great Depression. Many believed that his reluctance to intervene more forcefully contributed to the prolonged economic crisis.