The government should take no action in the event of a recession ,as their funds and resources were insufficient to assist the vast majority of those in need.
What was Hoover's approach to the Great Depression?
- In order to combat the Great Depression, President Herbert Hoover advocated for a partnership between the public and private sectors, pleading with corporations, banks, and the government to work in the nation's best interests.
- He signed laws for public works initiatives and higher government spending as the downturn deepened.Hoover urged companies to keep hiring people and avoid lowering wages in spite of declining profits as a way to start addressing the slump.
- He adopted a similar strategy when it came to the banking industry, establishing the National Credit Corporation in 1931 in an effort to get banks to lend to other failing banks in order to help them recover. Due to its high risk and lack of return on investment, this technique was mostly ineffective in the private sector.
- The unemployment rate increased as the depression persisted
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