How Did President Hoover Try To Combat The American Depression?

In 1930, US President Herbert Hoover persuaded Congress to cut taxes, and he increased public expenditure on the building of river dams, which would eventually create jobs for the construction industry.

In 1931, the Reconstruction Finance Corporation (RFC) was set up. It provided funds to help banks and insurance companies. But the government polices were viewed by many as useless. They pointed out that American goods remained expensive in world markets. In 1930, the American government agreed to the Howley-Smoot Tariff, which raised duties on imports to record levels. This simply provoked other nations to do the same, and American exports suffered as much as those of other countries.

Only in July 1932, did Hoover sign the Emergency Relief and Reconstruction Act, which gave the RFC power to lend $300 million to the states of the relief of the unemployed. Yet, by the end of 1932, when over 12 million Americans were out of work, only $30 million had been paid out by the RFC.

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