Summary
Herbert Hoover was the president at the initiation of the great depression. Hoover believed that if workers had high wages and were able to share their jobs in place of being laid of then the economy would improve because they would be able to buy goods and services to provide wealth to the country. Hoovers ideas of having workers combine jobs and keep up high wages for them were Hoover's pro-labor cause. Hoover was a big cause of the great depression with his labor ideas. hoover consulted with numerous industry leaders to talk to them about increasing or stabilizing workers incomes, or have workers share their jobs in order tot keep the unemployment rate down. Hoovers plan caused the inflation of the wages to constantly grow at a time when deflation struck. The company owners did not have the money to pay the workers increasing wages. Since the companies could not pay the workers, they started to lay off workers and cut their week hours.
Reflection
Herbert Hoover had the right intentions when he went to the companies. He caused bigger problems than just deflation though. Because of him, companies did not have the money to pay the workers their high fees, so they got laid off any ways. productivity in the country was low, so the companies just didn't have the money to pay the workers anymore. Hoover's pro-labor policies caused about two-thirds drop in America's gross domestic product. Without hoover The Great Depression may never of even happen, t could of just stopped at a recession.
Citation
Sullivan (2009, August 28). Hoover's pro-labor helped cause great depression, ucla economist says . Retrieved from http://newsroom.ucla.edu/portal/ucla/pandering-to-labor-caused-great-91447.aspx
Question
Do you think the Hoovers policies made America's economic crises worse?
In my option Hoover's policies might have made America's economic worse because many people would work. I feel like the economic system is cycle, and the cycle continues and improves with the more people spending and making more money. Which means that by spending they have jobs that rely on that they will have one everyday. By hoover removing some job opportunities to make money, the economy slowly goes down hill from there.
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