How did the American government tackle the Great Depression?

Learning objective – to be able to assess the American government’s policy in handling the Great Depression. I can describe some of the features of US economic policy between 1929 and Grade D I can explain and categorise most of the features of the US government’s economic policy between 1929 and Grade B I can explain and assess the performance of the US government and its handling of the Great Depression. Grade A

Starter – complete the famous quote from President Herbert Hoover about his government’s economic policy? Prosperity is

Starter – complete the famous quote from President Herbert Hoover about his government’s economic policy? Prosperity is just around the corner.

Who was President Herbert Hoover? US President between 1929 to 1933 and won the 1928 election by a landslide. US Secretary of Commerce between 1921 and 1928 – closely associated with the government’s economic policy. A Quaker who meant he was very caring. He was in charge of the relief fund for East Europeans in 1920 which saved millions of lives. Closely associated with Laissez Faire economics.

What did Hoover think caused the Great Depression? Falling world trade – but US trade needed protecting. Too much government intervention in other countries. Businessmen spending money they did not have.

What did Hoover do to tackle the Great Depression? Continued Laissez Faire policies and encouraged Rugged Individualism – the idea that an individual is responsible for their own lives without help from anyone else. Passed the Hawley-Smoot tariff in 1930 which increased import duties on foreign goods. Assisted farmers with the Agricultural Marketing Act of 1930 which enabled the government to lend farmers money and the Federal Farm Board in 1932 to buy up surplus farm produce.

What did Hoover do to tackle the Great Depression? Encouraged businesses to not to cut wages or production levels. Cut taxes by $130 million. Approved a $1.8 billion worth of public works projects, such as building roads. Set up agencies to aimed to relieve unemployment such as the President’s Organisation for Unemployment Relief which encouraged local initiatives and the Emergency Relief Act, which gave State Governments $300 million in extra funds.

What did Hoover do when his policies were not making an impact in 1932? Despite the federal government spending $500 million more per year on relief funds, unemployment was still rising – to almost 25% of the entire workforce in Hoover increased direct federal government intervention, such as the Reconstruction Finance Company, which gave loans to failing banks and businesses.

What was the reaction to Hoover’s increased intervention? The poor felt that Hoover’s public works projects came too late to improve unemployment and that his tax cuts favoured the rich. Businesses hated the Hawley-Smoot Tariff, which they blamed for the drop in exports from $2,341 million to $784 million between 1929 and Relief groups felt that the government was not doing enough despite claiming that they were. Increased violent protest in towns and cities.

Why was the government’s failure to handle the Great Depression Hoover’s fault? Hoover was closely linked to the government’s economic policies that had caused the Depression. He stuck with them for too long. With Hoover supporting Rugged Individualism and blaming businesses, he was seen to do virtually nothing in The Hawley-Smoot Tariff made the situation worse and international trade slowed further. Encouraging ‘voluntaryism’ – supporting charities – he saw it that it was not the government’s job to help the poor.

Why was the government’s failure to handle the Great Depression not Hoover’s fault? It was a world problem not an American problem – you cannot blame just one person. Hoover cancelled all war debts to increased international trade. Congress did not want to raise taxes to help the poor. The US political system limited Hoover’s powers to deal with the Depression. Responsibility for helping the poor and unemployed lay with the state government. Direct federal government aid took place – a rarity.

Tasks Complete all the tasks from the worksheet. Extension task Design an election leaflet for Herbert Hoover for the 1932 Presidential Election. What would you include? What would you highlight? What would you leave out?

Plenary Choose three words from the word cloud which you think are the most important. How do they link to the lesson? How do they summarise your learning?