How Did Hoover's Economic Collapse

390 Words 2 Pages
At the beginning of the Hoover Administration, the American Economy was world’s leading economy. The economy collapsed in 1929 under Hoover for several reasons. For one, the Administration demanded payment for war loans from the Allied nations whose economy was already suffering. Instead of helping Europe rebuild, tariffs were enacted on the sales of goods from other countries to help boost the American economy. This however was not helpful as it caused other nations to have less money to spend on American goods and led them to in turn increase their taxes and tariffs as well.
The American domestic economy was also suffering since the wealth was not distributed evenly and the rich seemed to keep getting richer as the poor suffered in poverty and starvation. People began buying on credit that was offered to keep up consumer demand just as new construction and auto sales decreased and companies began laying off its workers. Unemployed workers cannot pay their bills. As the banks
…show more content…
In this effort he nearly doubled the federal public works expenditures. Hoover also hoped that his Reconstruction Finance Corporation would pump enough money into the economy at the top, with the wealthy and it would in turn “trickle down” to help the poor. This along with many other factors led to the Great Depression.
I do believe that we could go through another Great Depression. Our country is a great country but it is flawed. It seems that we do so much to help other countries yet overlook our poor, homeless and hungry. We buy goods from other countries because it is cheaper. Many manufacturers outsource work because the labor and parts are cheaper in China, Japan, Mexico and Honduras to name a few. The economy has increased and decreased over the years so anything is

Related Documents