Situation by 1933 and why did Hoover failed Flashcards Preview

American History > Situation by 1933 and why did Hoover failed > Flashcards

Flashcards in Situation by 1933 and why did Hoover failed Deck (9)
Loading flashcards...
1
Q

Economy by 1933

• Market confidence

A

People stopped spending and, as this trend continued, production had to slow down or stop.

2
Q

Depression by 1933

• The nature of it

A
It was unevenly distributed throughout the country
For example, higher unemployment among working-class women
3
Q

Foreign Policy by 1933

A

Isolationism, with economic intervention in Latin America

4
Q

Hoover’s policies on agriculture

• The Granin Stabilistation Corporation 1930

A

It tried to guarantee fair prices by buying wheat so that it could be stored until the price went back up again.
However, prices continued to plunge.

5
Q

Why did Hoover’s policies on agriculture failed?

A

1) Hoover was paying farmers artificially high prices.
2) Farming was badly affected by the introduction of tariffs through the Hawley-Smoot Tariff Act 1930. Although it protected US farmers by increasing import duties on foreign goods, other countries refused to trade with the US subsequently.

6
Q

Hoover’s policies on industry
• Unemployment
• The Emergency Relief Act 1932

A

1) Hoover met with businessmen and implored them not to cut their workforce or wages.
2) Hoover encouraged state governments to begin new public works programmes. In 1932, he gave an additional $500 million to help various agencies to provide relief
3) The ERA gave $300 million to state governments to help the unemployed.

7
Q

Hoover’s policies on industry

• The Reconstruction Finance Corporation 1932

A

The RFC lent $2 billion to rescue banks and insurance companies.

8
Q

Unemployment by 1933

A

Unemployment increased from 3.2% in 1929 to 25.2% in 1933 with 12,380,000 out of work

9
Q

Collapse of the American Banking system

A

By 1932, banks were closing at the rate of 40 per day.

Decks in American History Class (71):