Responses of Hoover government and industry to the Great Crash
7.2 The Great Depression
The Progressive Era in the United States
A Level/AS Level/O Level
History Notes
Your Burning Questions Answered!
Assess the effectiveness of the Hoover government's response to the Great Crash of 1929.
Analyze the role of industry in both contributing to and responding to the Great Depression.
Examine the key features of the Progressive Era in the United States and evaluate its impact on American society.
Explain the causes and consequences of the Great Depression, focusing on its social, economic, and political effects.
Discuss the significance of the Great Depression as a turning point in American history and its lasting legacies.
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Responses of Hoover government and industry to the Great Crash
The Hoover Government and Industry's Response to the Great Crash:
1. The Crash and its Aftermath:
The stock market crash of 1929 was a catalyst for the Great Depression, not its cause. The US economy was already facing imbalances like overproduction, speculation in the stock market, and a growing gap between the rich and the poor.
The crash itself was a rapid decline in stock prices, fueled by panic selling. This led to a loss of confidence in the economy, causing businesses to fail and unemployment to skyrocket.
2. Hoover's Response:
President Herbert Hoover believed in a "limited government" approach and initially resisted direct intervention in the economy.
His focus was on voluntary cooperation between businesses and the government, hoping to revive the economy through private initiative.
Hoover did implement some measures:
⭐The Reconstruction Finance Corporation: Provided loans to banks and businesses to help them stay afloat.
⭐The Smoot-Hawley Tariff Act: Increased tariffs on imports, aiming to protect American industries. This backfired, leading to retaliatory tariffs from other countries and stifling international trade.
However, these measures were insufficient to stem the tide of the Depression.
3. The Role of Industry:
Many businesses, facing falling demand and declining profits, resorted to cost-cutting measures:
⭐Wage cuts and layoffs: This further worsened the economic situation as people lost their incomes and spending power diminished.
⭐Production cuts: Businesses reduced production, which further decreased demand and led to a vicious cycle.
Some industries like agriculture suffered even more due to falling prices for their products and a lack of government support.
4. The Limits of Hoover's Approach:
Hoover's belief in limited government intervention proved too restrictive to address the depth of the economic crisis.
His measures were too slow and too cautious, failing to provide the immediate relief needed by millions of Americans facing hunger, homelessness, and unemployment.
By the 1932 election, the public had lost faith in Hoover's ability to lead the country out of the Depression.
The Progressive Era in the United States:
1. A Time of Reform:
The Progressive Era (roughly 1890-1920) was a period of significant social, political, and economic reform in the United States.
It emerged as a response to the industrialization and urbanization of the late 19th century, which brought about issues like poverty, corruption, and poor working conditions.
2. Key Drivers of the Movement:
⭐Social Gospel: A movement that emphasized the need for Christian principles to address social problems.
⭐Muckrakers: Investigative journalists who exposed corruption and injustices in society through their writing.
⭐Progressive reformers: Individuals, often from the middle and upper classes, who advocated for change through political activism, public education, and social reform.
3. Major Reforms:
⭐Regulation of Business: Antitrust laws were passed to break up monopolies and promote competition, while government agencies were created to oversee industries like railroads and food production.
⭐Labor Reforms: Laws were implemented to limit child labor, improve working conditions, and establish minimum wage regulations.
⭐Political Reforms: Voting rights were expanded to include women and direct election of senators was implemented.
⭐Social Reforms: Public education was strengthened, and reforms were made in areas like public health, sanitation, and environmental protection.
4. Impact and Legacy:
The Progressive Era significantly impacted American society, laying the foundation for many of the social welfare programs that exist today.
It also helped to raise awareness of social problems and fostered a sense of civic engagement and collective action to address them.
However, the reforms of the era were not universally embraced, and some groups, particularly those with economic or social power, saw them as threats to their interests.
7.2 The Great Depression:
1. A Global Economic Disaster:
The Great Depression (1929-1939) was the most severe economic downturn in modern world history.
It began in the United States following the stock market crash of 1929 and spread rapidly to other countries.
Key factors contributing to the depression included:
Overproduction in agriculture and industry
Speculation in the stock market
High levels of consumer debt
Inadequate banking regulations
Global economic imbalances
2. Impact on American Society:
The Great Depression had a devastating impact on American society:
⭐Mass unemployment: One in four Americans was out of work, leading to widespread poverty and hunger.
⭐Business failures: Millions of businesses closed down, and many industries struggled to survive.
⭐Homelessness: People lost their homes and were forced to live in makeshift shelters or shantytowns known as "Hoovervilles."
⭐Dust Bowl: A series of severe dust storms in the midwestern United States caused widespread crop failures and forced farmers to migrate.
3. Government Response:
President Franklin Delano Roosevelt's New Deal (1933-1939) marked a shift in government policy, moving away from a limited government approach to a more active interventionist role.
The New Deal aimed to provide relief, recovery, and reform:
⭐Relief: Programs to provide direct aid to the unemployed and poor.
⭐Recovery: Programs to stimulate the economy through public works projects and government spending.
⭐Reform: Programs to create a social safety net, regulate the financial system, and prevent future economic crises.
4. Legacy of the Depression:
The Great Depression had a lasting impact on American society, shaping political and economic policies for decades to come.
It led to a greater role for government in regulating the economy and providing social welfare programs.
It also reinforced the importance of economic security and social responsibility.
This is a basic framework for your notes. You can add more details about specific events, individuals, or policies. Remember to explore the resources available to you, such as textbooks, websites, and documentaries, to further deepen your understanding of these significant periods in American history.
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