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While not believing in charity by the government, Hoover did try and help the economic mess that began during his administration. He gave much of his money to charity and encouraged Americans to do the same. He broke with Republicans and did away with the taxes that had been placed on citizens during the Coolidge administration. He thought that would allow for more income being spent to help the economy rebound. He spent $500 million a year on public works and government programs to build or improve government properties. The most famous was the Hoover (Boulder) Dam. Congress established the Reconstruction Finance Corporation (continued by FDR) which created an agency to help banks, railroads, and other key businesses to stay in business thus helping the economy. All of these things could not stem the tide of the economic collapse. Hoover believed in a balanced budget and not pumping government money into the economy. He believed in "rugged individualism" and relied on the individual, the churches and private charities, and the local and state governments to handle most of the economic help that was needed.
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∙ 14y ago
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∙ 13y agoWhile not believing in charity by the government, Hoover did try and help the economic mess that began during his administration. He gave much of his money to charity and encouraged Americans to do the same. He broke with Republicans and did away with the taxes that had been placed on citizens during the Coolidge administration. He thought that would allow for more income being spent to help the economy rebound. He spent $500 million a year on public works and government programs to build or improve government properties. The most famous was the Hoover (Boulder) Dam. Congress established the Reconstruction Finance Corporation (continued by FDR) which created an agency to help banks, railroads, and other key businesses to stay in business thus helping the economy.
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∙ 14y agoNovaNET Answer: declaring that the depression had ended.
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∙ 14y agodeclaring that the depression had ended
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Is it necessary to have democracy to have a free enterprise economy?
It is. However, some countries, such as China and Vietnam has tried to keep its one party policy while gradually moving towards free market economy approach.
What does Laissez-faire have to do with the Great Depression?
The Great Depression happened because of a failure to follow laissez-faire policies. First of all, the whole business cycle is caused by central banking, imposed by government, and other means by which the government interferes with interest rates and the supply of money and credit. In particular, in 1927, England tried to return to pre-WWI gold exchange rates instead of leaving prices where they were. This caused a loss of gold from England, which America's Federal Reserve tried to help prevent by lowering interest rates. This is what set off the speculative boom of the late 20's. It is said that Hoover's policies after the crash were laissez-faire, but nothing could be further from the truth. As far back as the early 1920's, Hoover had written that the best way to deal with a recession is to institute public works projects. He did so, starting many public works, including the Hoover Dam. He increased government spending and taxes, encouraged the Fed to extend another $300 million to try to re-inflate the economy, and started poverty relief programs. Hoover's policies so closely resemble FDR's that some writers call it "Hoover's New Deal". The only difference between the policies of Hoover and FDR was the scale. FDR simply did more of what Hoover was already doing. The worst hit to the economy from Hoover's policies was when he called business leaders from all over the country to Washington to "persuade" them to keep wages high. To do this, he used the threat of pro-union legislation, or promises to protect businesses from union legislation. Professor Lee Ohanian of UCLA has calculated that this policy accounts for over 2/3 of the unemployment of the early years of the Great Depression and prolonged it for 7 years. The answer to the question is that laissez-faire had nothing to do with the Great Depression, except that maybe it would have been a good idea that was not used.
Some reasons why reductions in world trade barriers are driving the world toward a global economy?
Reductions in world trade barriers are driving the world toward a global economy because the reduction in these barriers make it much easier to trade with other countries. Our economic condition is tried with the economic conditions of all other countries.
Why did the American economy collapse in 1929?
The American economy of the '20s was distorted by various factors.America's own war-time measures (from WWI) were not unwound. For example, during the war farmers had been encouraged to produce quantities for which, after the war, there was no longer demand, and the federal government subsequently acted to protect farmers from market forces.Foreign governments (such as that of Great Britain) had gone off the gold standard to pay for the war without overt taxation, and were then trying to restore the original standard rather than fixing a new standard in keeping with where prices had gone. The United States tried to help its allies as they pursued this attempt, but this affected our own money supply.America increased its own money supply, which ended-up distorting patterns of investment and creating an unsustainable false dawn of great prosperity. The market treated the new money as if it corresponded to an increase in real wealth, seeking investment. Huge sums were invested -- either directly in the means of production or in stocks and bonds -- based upon illusion. Investors and speculators, fooled by the false dawn (or trying to out-race the eventual collapse), borrowed with dramatically insufficient collateral to repay if their investments soured.Contrary to popular myth, the Republicans of the '20s were technocrats in the tradition of Alexander Hamilton, rather than believers in market forces. They believed that, with control of the banking system and with other regulation, they had produced a better system.One of their policies was protectionism. In particular, a bill by Republicans Reed Smoot and Willis Chatman Hawley which would dramatically increase tariffs on thousands of items, began to work its way through Congress. Even before it was signed into law by the President Herbert Clark Hoover, foreign governments began to effect retaliatory measures and knowledgeable investors began to withdraw their investments.The process whereby the money supply had been allowed to expand went into a sort of reverse, and the money supply began to contract. but the central bank didn't really understand what was happening, and thus allowed the money supply to collapse. In this context, prices no longer directed economic activity to where it would do the most good.Herbert Hoover was the foremost of the technocrats. In the wake of WWI, Hoover had done a magnificent job of organizing relief and recovery for Europe. (He is still considered a hero in parts of Europe.) But he didn't recognize that directing an economy that has been laid low by war or by similar catastrophe (which economy has a natural target, in the form of where things were before the war) is very different from that of directing other sorts of economies. In the early '20s, Hoover had been Secretary of Commerce, during which time the United States had gone into a sharp recession (for much the same reason that the economy would do so in the late '20s). Hoover tried to convince then-President Warren Gamiel Harding to accept aggressive policies to combat the recession, but by the time that Harding began to consent, the economy had already recovered. In 1929, Hoover was now President, and began taking the sort of steps that he had wanted taken in the previous recession.Hoover believed that the down-turn was caused by deficiencies of the market itself, rather than by technocratic policies, and that wise administration could restore prosperity. Specifically, he believed that aggressive competition was driving-down wages and prices to levels incompatible with prosperity, and that these needed to be raised back up to restore prosperity. So he began pushing workers to unionize and businesses to form cartels, to reduce competition. And he otherwise acted to keep wages and prices from dropping. And, even though he felt that the Smoot-Hawley Tariffs were too high, he signed the bill into law to block foreign competition. The idea was that if wages and prices were high, then businesses and workers would have more money to spend, and that spending would restore the economy. In reality, business lost money because buyers reduced their purchases, and workers lost money because they lost their jobs. They were being priced out of the market. If policy had acted to keep the over-all price level from dropping, but allowed relative price changes, then this would have been very helpful. But, as it was, relative price adjustments were impeded.And, if that weren't enough, the federal government balanced its budget not by reducing spending, but by raising taxes, so people were made even more poor. One of the reasons that the federal government didn't reduce its spending was that it tried to use public works -- government projects -- as a way to create employment. Of course, pretty much every dollar that went to a business or worker on such a project had come from some other business or worker. And these public works generally made less economic sense than the activity that they'd displaced.(Roosevelt didn't actually adopt a dramatically different policy except that he took the United States off a true gold standard (moving us to a gold exchange standard) and stopped balancing the budget. Until 1938, he continued the policies of cartelization, unionization, and public works; so the process of economic recovery was very slow. In fact, in 1938, the economy went back into decline. Without blinking an eye, Roosevelt blamed business cartels and his administration went in the opposite direction, attacking businesses for charging the same price as others in their industry as engaged in collusion, attacking businesses for charging less as seeking monopoly, and attacking those who charged more on the theory that they could only do so if they had something of a monopoly. This madness (where no price was legal) continued unchecked into WWII, until the military told Roosevelt that we would lose the war if he didn't stop beating-up the companies that supplied the military.)
How did Stalins economic changes result in suffering?
Stalin tried to make the economy fully industrial as a result there were shortages of food, housing and clothing. He also began a farming revolution by making "Collective Farms" but wealthy peasants resisted it and millions were killed and exiled for it.
Diocletian tried to restore the roman economy with taxation and?
Price Controls
Which best describes the goal of Charlemagne?
He tried to restore order to Europe.He tried to restore order to Europe.
How did Hoover try to alleviate the problems of the great depression?
Hoover tried to 'repair' the economy by not allowing the government to give money directly to the people. he thought this would make the people lose the hope of finding a job; they would be 'spiritless'. Instead, the money was given to the banks and other big factories or industries.
What two emperors tried to restore the roman empire?
The two emperors who tried to restore order in the Roman Empire were Diocletian and Constantine I (or the Great).
Was France was forced into war when outsiders tried to restore the monarchy?
Yes
What is Relief-Recovery-Reform?
Its when FDR tried to relieve the economy of the depression so that there will be more recovery. He tried to reform things to get the economy back on track.
What roman emperor tried to restore order by dividing the empire into two?
Diocletian
What group tried to restore Europe to pre-Napoleonic condition?
the Congress of Vienna
Which Hapsburg emperor tried to restore the Catholic Church in Bohemia?
Ferdinand II
Your ipod classic screen just turned black?
I tried to restore it for a little bit, and then it stopped working again. Try to restore it.......
Was President Herbert Hoover to blame for the Great Depression?
no because he tried his hardest to end depression
How did Cromwell ty to restore order to the Commonwealth?
He tried to restore order to the Commonwealth by imposing Puritan rules of behavior. He defeated the Scots and Irish and tried to talk Protestants into settling in Ireland, where they could replace Irish Catholic landlords.
