Herbert Hoover Rugged Individualism- laissez faire doctrine Opposed federal welfare and handouts Trickle-Down Economics

Hoover’s Plan Proposed a Tariff bill which Senator Smoot presented called the Smoot-Hawley Tariff –Promised increased tariffs on imports –Planned to allow more productivity for US manufacturers –Help ease unemployment

Investors marvel at This Proposal Investors believed profits from stocks would increase if the tariff bill was passed Sparked intense speculation Dow Jones Industrial Average increased by almost 35% because expected election of Hoover and his bill

Hoover’s Plan to combat Crash Extracted promises from manufacturers to maintain production. Signed legislation providing generous additional funds to pubic works Smoot-Hawley Tariff 1930 (finally passed): to raise duties 50%

Hoover’s last Attempts Hoover proposes one year moratorium on war debt payments –Too little too late –Financial panic: European Government goes off their gold standard and devalues currencies, destroying exchange system (hurts trade) –Europe withdraws gold from US banks