THE GREAT DEPRESSION 1929 1940
THE GREAT DEPRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Supply side economics
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trickle down economics
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laissez faire economic
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Socialist economics
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Detailed explanation-1: -Hoover feared that providing direct aid to people in need would cause them to lose their incentive to work hard toward financial success. Because of this, Hoover did not think the federal government should give financial aid to the unemployed.
Detailed explanation-2: -In July 1932, Hoover signed into law the Emergency Relief Construction Act, which allowed the RFC to lend $300 million to the states for relief programs and $1.5 billion for public works projects. Hoover also persuaded Congress to establish Federal Home Loan Banks to help protect people from losing their homes.
Detailed explanation-3: -Laissez-faire attitude (hands off) towards government involvement in the economy. Republican presidents of the 1920s allowed businesses to do what they wanted with little government interference. Led to collapse of Stock Market which then led nto the Great Depression.