Introduction
The Great Depression was characterized by significant economic downturns in the United States. Although there are several reasons for this event, I think President Hoover and the US Government were partly to blame. With President Hoover’s rise to power in 1929, the American economy’s decline began, leading to unemployment, homelessness, disease, racial tensions, and other economic and social consequences.
Herbert Hoover and the US Government’s Fault in the Great Depression
It is worth noting that in 1929, the US economy was already in a state of decline due to global economic processes. However, the President’s approach was that the government should allow the economy to stabilize independently. However, due to inaction, the Depression worsened, and many businesses closed. More than 15 million people became unemployed and did not have sources of income (History.com Editors, 2022). As a result, there was an increase in the number of homeless people who built camps, Hoovervilles, with whatever materials they could find.
Moreover, in 1930, the Smoot-Hawley Tariff Act was signed, according to which tariffs on the import of goods into America were increased by an average of 20% (Duignan, 2022). This law was an attempt by the government to support the economy and industry with additional funds from imports. However, in response to this Act, other countries have raised tariffs on American exports (Duignan, 2022). As a result, international trade deteriorated, and the Depression became even more pronounced.
The US government did not contribute to solving the current economic situation, but worsened it. For example, the government kept interest rates low, which led to the stock market crash in 1929 (Herbert Hoover Presidential Library and Museum, n.d.). In addition, the 1930s saw significant government-supported income inequality. The rich received benefits, such as tax cuts, while the rest of the citizens earned significantly less (Duignan, 2022). This led to social tensions, particularly against the backdrop of race, since immigrants were blamed for the poverty of Americans.
Conclusion
Thus, President Hoover’s inaction and the US government’s encouragement of the wealthy class contributed to the deterioration of the country’s economic situation and the Great Depression. With the global economic downturn, the authorities had to take action to protect the country. However, the laws they passed led to the collapse of the stock market and banks, the closure of enterprises, and unemployment. Moreover, this has led to social inequality, discrimination, and increased morbidity.
References
Duignan, B. (2022). Causes of the Great Depression. Britannica. Web.
Herbert Hoover Presidential Library and Museum. (n.d.). The Great Depression. National Archives. Web.
History.com Editors. (2022). Hovervilles. History. Web.