Situation by 1933 and why did Hoover failed

Question 1

Economy by 1933

• Market confidence

Answer 1

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

Question 2

Depression by 1933

• The nature of it

Answer 2

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

Question 3

Foreign Policy by 1933

Answer 3

Isolationism, with economic intervention in Latin America

Question 4

Hoover’s policies on agriculture

• The Granin Stabilistation Corporation 1930

Answer 4

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.

Question 5

Why did Hoover’s policies on agriculture failed?

Answer 5

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.

Question 6

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

Answer 6

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.

Question 7

Hoover’s policies on industry

• The Reconstruction Finance Corporation 1932

Answer 7

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

Question 8

Unemployment by 1933

Answer 8

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

Question 9

Collapse of the American Banking system

Answer 9

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