Friday, December 8, 2017
Herbert Hoover and his contributions to the great depression
President Hoover was the 31st president of the United States. He is often seen as one of the worst president. This is because some of his actions helped make the depression much more severe. One such example is him urging many employers not to fire people or cut wages. This resulted in wage rigidity, which many economists have said only worsened the depression. Another example is the Smoot-Hawley Tariff Act. This raised tariffs on imported items and was supposed to encourage Americans to buy American-made items and protect farmers. What actually happened was that other countries raised tariffs on American products, which worsened the depression.
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To add on to the blog post above, Herbert Hoover's goal was to promote business, and he supported what he called "associationalism," which was the process of bringing industry leaders together to boost economic efficiency. He believed that if business flourished, poverty in turn would disappear. The year before the stock market crash, Hoover ironically boasted that the United States was "nearer to the final triumph over poverty than ever before in the history of any land."
ReplyDeleteI agree with this post knowing that Hoover had a policy of "laissez faire." This means he believed that the economy would fix itself over time as businesses grew back. He never considered the impossibility of the businesses to get back on their own whithout government help.
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