Question

Which option most accurately identifies the impact of Herbert Hoover’s policies to counteract the effects of the Great Depression?

A. Hoover’s policies created banking subsidies, socialist reform, and Hoovervilles.

B. Hoover’s policies promoted banking reforms, immigration reform, and tariff reduction.

C. Hoover’s policies centered on a balanced budget, tax cuts, and developing public works projects.

D. Hoover’s policies established stock market reforms, wage reduction, and farm subsidies.

Answer 1

The correct answer is "C".

Herbert Hoover assumed the Presidency from 1929 to 1933 (the period of the Great Depression). During this particularly harsh time for the country. He took a series of actions in order to stabilize the economy. These included the aid to financial institutions, which, in the opinion of Hoover lacked the trust of the public.

Hoover offered loans to banks by reducing the federal interest rate in order to ease this process.  He also believed that the solution did not reside in cutting wages, but rather fomenting an increase in public expenditure in order to create more jobs.