America is Ready for a Change

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Presentation transcript:

America is Ready for a Change

Hoover’s Strategy After market crash, insisted confidence was needed to fix market. Blamed it on world-wide economic problems and beyond anyone’s control. Always insisted conditions would improve…

Voluntary Action Fails 1929 ( before the crash) Congress passed the Agricultural Marketing Act. Goal was to establish a Federal Farm Board to stabilize the crop prices Huge failure Government began spending more on public works ( Hoover Dam)

Hawley-Smoot Tariff 1930 Highest import tax in history European nations too raised their tariffs – slowdown in int’l trade. Hoover suspended the Allies’ loan payments Too late

Reconstruction Finance Corporation Gave gov’t credit to a number of institutions Large industries (R.R. and insurance companies) Lent $$ to banks so they could extend loans (Funded through the United States Treasury During its years of existence, the RFC borrowed $51.3 billion from the Treasury, and $3.1 billion from the public. *existed through WWII* )

Hoover’s Support Declines Further As the nation slipped deeper into the Depression, Hoover stood by his belief in private enterprise He was against public welfare and relief programs at the federal level should be up to states.

John Maynard Keynes (British economist) Massive gov’t spending would help a collapsing economy & encourage private spending and production. (General Theory of Employment Interest and Money)

20th Amendment Called the Lame Duck Amendment Shortened the time between the day a president was elected and the day he took office. Moved from March 4th to January 20th