7437661
Description
Mind Map by Kinza Hussain, updated more than 1 year ago
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Created by Kinza Hussain
about 8 years ago
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Why did Hoover fail to end Depression?
- Smoot-Hawley Tariff (1930)
- Raised import taxes (tariffs) to
the highest level in US history.
- Aims were to protect US economy and domestic
producers from foreign competition
- Average tariffs on imported agricultural
and industrial goods rose to 40%
- Other countries retaliated by raising their
tariffs and US farmers could not sell
surpluses. This made economic recovery difficult
- Raised import taxes (tariffs) to
the highest level in US history.
- Homelessness and the Hoovervilles
- Hoover offered positive words about economic
recovery but reality of Depression was different
- During Hoover's presidency 13 million
Americans lost their jobs
- Because the USA lacked a federal welfare system from
1929-33, unemployed had to rely on help from state
governments. These were only able to offer short-term
help which led to rapid rise in homelessness
- 'Hoover wagon', 'Hoover blankets',
'Hoovervilles'- shanty towns. No
water supply, sanitation, power,
sewerage disposal.
- Hoover offered positive words about economic
recovery but reality of Depression was different
- The Reconstruction Finance Corporation
- First major departure from reliance on voluntarism
to deal with economic crisis.
- Corporation was given $2 billion of taxpayers
money to directly assist banks and insurance
companies that were in finanfical trouble.
- 90% of the RFC's money went in
loans to small/medium size
banks. But was only partially
successful.
- Helped a worsening of the
Depression. From Feb-March 1932,
helped 160 banks, 60 railroads +
18 mortgage companies.
- However, RFC failed to
encourage banks to lend to
business that were facing
severe financial problems +
possible bankruptcy. Did not
show signs of economic
recovery yet Roosevelt chose
to continue with it during his
presidency.
- However, RFC failed to
encourage banks to lend to
business that were facing
severe financial problems +
possible bankruptcy. Did not
show signs of economic
recovery yet Roosevelt chose
to continue with it during his
presidency.
- First major departure from reliance on voluntarism
to deal with economic crisis.
- Emergency Relief and Construction Act (July 1932)
- Was the USAs first
massive relief
programme.
- Had the power to give $1.5 billion to state governments to
fund public works for the unemployed.
- Had the power to give $1.5 billion to state governments to
fund public works for the unemployed.
- Criticism was that $2 billion
would be enough to help just
10% of American's unemployed
- Was the USAs first
massive relief
programme.
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