I have read the Forgotten Man...but look at Hoover’s actions...he did not send any help to the average American...he threw money at the banks and at business...his fed policies may have caused or at least exacerbated the depression also. He also raised tariffs which I think had a minor effect...but some disagree.
” Many of the wealthy, as well as others, joined the speculative stock market sending stock prices to greater and greater without regard to company performance; In October, 1929, the bubble burst. The crash meant the tremendous loss of capital as prices declined $74 billion from 1929 to 1932 and the repatriation of much of US investment abroad. The Germany economy collapsed followed by the British and french economies. Germany could not pay the reparations it owed to the victors of WWI or make debt payments to US lenders, setting off a chain reaction. The world entered an economic depression.
President Herbert Hoover did not know how to meet this crisis. His government began buying farm surpluses in order to prop up prices but it did not buy enough to make a difference. The Farm Board loaned money to farmers to establish cooperatives (a socialist measure) but the millions of farmers scattered across millions of miles had difficulty in cooperating. Farm income went from $8 billion in 1929 to $3 billion in 1933, a decline of 62.5%.
Republican wisdom said that high tariffs were good for the economy and, besides, in a time of world crisis countries tend to become very nationalistic, so the Congress passed, with Hoover’s acquiescence, the very high Hawley-Smoot Tariff in 1930. Raising the tariff made things worse because it meant that foreigners could sell less in the US and thus earn fewer US dollars with which to buy US goods or make payments on debts owed to US citizens. Exports fell 50%.
As historians Peter N. Carroll and David W. Noble note, Hoover feared that the collapse of the large corporations would bring down the entire US capitalist system. After all, one percent of the banks held 50% of banking assets. Three corporations—Ford, Chrysler, General Motors—manufactured 85% of the automobiles sold in the US. Chain stores dominated retail sales and their difficulties had national repercussions.
Business and industry met the crisis as they had always done—they cut production, lowered wages, reduced working hours, and fired workers. Unemployment rose from 1.5 million in 1929 to 13 million in 1933, a figure which represented 25% of the labor force. Even such a high percentage hid the dimensions of the problem because it did not what percentage had been forced the part-time work. Industrial wages fell from425 a week to $17 a week, a decline of 32%. By 1932, sawmill workers were only earning five to ten cents an hour; Tennessee female mill workers earned $2.39 for 50 hours work; and Connecticut women got between 60 cents to a dollar for a 55 hour week. To help the situation, the Hoover administration sept close to a billion dollars in public works programs but he would not go further. Nor would he argue for direct relief to the unemployed and starving because he feared that doing so would corrupt them. Although he had administered relief progress in Europe after the First World War, he saw that as only an emergency measure caused by war. He believed that doing a similar thing in the the US would become a permanent practice. To many, he was callous. As people lost their homes and created shanty towns, they derisively called the “Hoovervilles.” Hoover argued that private charities and state and local governments should be the institutions to provide relief. But they were suffering as well and could not deal with a problem of this magnitude.
Hoover and the Republicans saw aid to corporations as being different. Whereas they believed that helping the individual citizen weather the Depression would corrupt him or her, aiding corporations and other business was different. To many, it appeared that the Republicans were only interested in the rich. The newly-created Reconstruction Finance Corporation aided only the large corporations.
Hoover broke precedent because the national government assumed some responsibility for what happens during an economic depression but he was not willing to go far enough. He believed that the depression was part of the normal business cycle and had been caused by international factors and not US ones. to him, “prosperity was just around the corner.” The best thing for the country to do would be to wait the crisis out.”
You know, I think it’s a fair assumption that you’re still a liberal Democrat.
And that also reads like a Wikipedia entry, those big bad Republicans vs. those wonderful compassionate Democrats. Wonderful compassionate Democrats who have been carrying out the Marxist plan to upend our country for most of the past century. Well, they did it. Congrats to them.