president hoover's overall plan to deal with the great depression was to?
President Hoover's overall plan to deal with the Great Depression was based on the principles of rugged individualism and limited government intervention. His approach focused on encouraging voluntary cooperation between businesses and relied heavily on charitable organizations. Here are the steps taken as part of Hoover's plan:
1. Restore Public Confidence: Hoover aimed to restore public confidence by reassuring Americans that the economy would soon rebound. He promoted optimism and emphasized the strength of the American character.
2. Encourage Voluntary Cooperation: Hoover called on business leaders to voluntarily maintain wages and employment levels, hoping to prevent further economic decline. He organized meetings with industry representatives to discuss production and price stabilization.
3. Reconstruction Finance Corporation (RFC): In 1932, Hoover established the RFC to provide financial support to banks, railroads, and other businesses. Its purpose was to increase lending and stimulate economic activity. However, its effectiveness was limited due to strict lending criteria.
4. Tariffs and International Trade: Hoover signed the Smoot-Hawley Tariff Act in 1930, which raised tariffs on imported goods. This was intended to protect American industries and promote domestic manufacturing, but it ultimately reduced international trade and worsened the global economic situation.
5. Public Works Programs: Hoover supported the construction of public infrastructure projects, such as roads, dams, and government buildings. These projects aimed to provide jobs, stimulate demand, and boost the economy. However, these efforts were insufficient to address the widespread unemployment and economic hardship of the time.
Despite these measures, Hoover's plan was largely ineffective in combating the Great Depression, and public dissatisfaction grew. The severity of the crisis eventually led to the election of Franklin D. Roosevelt, who implemented more extensive government intervention and economic reforms through the New Deal.
President Herbert Hoover's overall plan to deal with the Great Depression was centered around the concept of "rugged individualism" and limited government intervention. He believed that the economy would naturally recover if government interference was kept to a minimum. However, as the situation worsened, Hoover implemented a series of measures to address the crisis:
1. Encouraging voluntary cooperation: Hoover called on businesses and labor unions to work together and maintain wages and employment levels to avoid layoffs and wage reductions.
2. Public works projects: In an attempt to stimulate the economy and provide jobs, Hoover authorized the construction of public works projects such as the Hoover Dam and the Federal Highway System.
3. Tariffs: In an effort to protect American industries, Hoover signed the Smoot-Hawley Tariff Act into law, which increased tariffs on imported goods. However, this move backfired, as other countries retaliated with their own tariffs, further hindering international trade.
4. Reconstruction Finance Corporation (RFC): As the depression deepened, Hoover created the RFC, a government agency that provided emergency loans to banks, railroads, and other businesses to prevent their collapse.
5. Home Loan Bank Act: Hoover also signed this act, which aimed to provide assistance to struggling homeowners by providing loans to banks to finance mortgages.
Overall, Hoover's plan relied heavily on voluntary cooperation and limited government intervention, which proved insufficient in addressing the severity of the Great Depression.