Government Reaction Flashcards
When did Herbert Hoover become president?
In 1929, a few months before the Wall Street
What did hoover believe about government help?
Hoover was Republicans he believes in the sea fair, he thought government help many people week and dependent
Federal farm board
July 1929 – $500 million to buy surplus agricultural products. By 1932 the money was all spent and board was disbanded. Initially the food was destroyed, but afterwards it was used to feed the unemployed
Smoot hawley tariff
June 1930 – increased tariffs on imported goods to encourage Americans to buy American goods, and so keep more people in work. However it decreased imports and exports, further damaging trade, making the situation worse.
National credit Corporation
1931 – a private organisation funded by healthy banks and businesses to help less secure ones to save them from bankruptcy and restore confidence. It started with $500 million and had only lent $10 million by the end of the year. It wasn’t doing enough to say it was replaced by the RFC.
Reconstruction Finance Corporation
January 1932 – replacement for the NCC under government control, also lent money to railroads
Emergency relief and construction act
July 1932 – extended RFC lending to farming and public works. Had an extra $300 million to give states for relief
Federal home loan bank act
Supervised banks and other lenses. Had a fund to lend money to people who had problems paying loans. It had 41,000 applicants for help but only accepted 3
How did laissez-faire contribute to the depression?
The government had let businesses run themselves and not controlled high levels of credit
