Name: Nicholas Agbede
Instructor: Ms. Hardesty
Course: United States History 11/A
Date: 14 December 2015
We all know that nowadays our country is going through rough economic times. I do not see any reason to claim that this is not a truth because each of the citizens of this great country sees itself all the consequences of this terrible economic crisis. At the same time, I want to say that there is no any reason for concern because together we can overcome any obstacles on our way. The main thing that all of you have to know is the fact that only working together, helping each other to work, as well as trusting the current government of President Hoover we can cope with any ordeals. We are the great nation, which had such famous people as George Washington, Abram Lincoln, who has made this country one of the most powerful, influential, and prosper.
First of all, I want to refute the widespread rumors regarding the fact that the Hoover administration in the current crisis is idle because it is immensely far from reality. Our president decided to not rely on self-regulation of the economy, as did most of the countries, which had also been touched by the crisis and decided to soften its punches through the active government intervention. To this end, he developed a storm of activity, and soon, you, the citizens of the United States of America will be able to see its positive effects. In November 1929 was announced the President's plan, which was called "Send the power of the state to rescue the economy." The plan was developed with the purpose of active government support for the banking system, industry, and agriculture (Hamilton). Only agricultural marketing association, founded in 1929, has been allocated $600 million or the loans. Government G. Hoover has greatly weakened the effect of the crisis by providing financial aid to bankers and industrialists in order to save them from the bankruptcy (Smiley). In addition, was created a government corporation "The Reconstruction Finance Corporation", which has spent billions of dollars in order to save insolvent banks, companies, railroads and farms from imminent bankruptcy. I will not conceal the fact that the jump in government spending when during Hoover's presidency is the largest in the peacetime of American history, but these measures were vital in order to the salvation of our country.
March 9, 1931, was established the Federal Deposit Insurance Corporation, the main provisions of which were granted by the Federal Reserve System's loans to private banks (Eichengreen). At the same time, were implemented some steps in order to prevent massive withdrawals of deposits from the banks. In addition, was designed a decree in order to ban the export of gold. After accomplishing of these steps to the end of March, 80% of banks were opened, and 20% eliminated. Hoover Presidency also desperately try to implement other plans to improve the health of the banking system.
The second item that our government accomplished in order to reduce the negative impact of Great Depression is a fair social policy. In the fall of 1929, the President held a series of meetings with major manufacturers and made them solemnly promise not to reduce wages to their employees (Eichengreen). In 1930 was taken the lowering of the taxes. As a result, the overall taxes of typical American family with an income of $4000 fell by 2/3. These steps had encouraged humanitarian activities of municipal structures and private charity.
Finally, our authority organized large-scale public works for the construction of infrastructure facilities. In the spring of 1930 on public works has been allocated $750 million - a fabulous sum. For four years of Hoover's presidency in the United States were started a lot more construction projects than in the previous 30 years. The vivid example of such construction project is "Golden Gate" bridge in San Francisco, which will certainly be one of the sightseeing attractions of our country.
Another element of the plan of our authority is to protect domestic producers. In 1930, a was passed Smoot–Hawley Tariff Act, which introduced high customs duties on imported goods (Hamilton). As a result of this step, the volume of imports has decreased by several times. So the president has kept domestic producer and has done everything possible for the sake of economy of the United States of America.
As the Great Depression started to develop, our President took some steps to prevent it in the future. That is why our power established a control over foreign capital and created a public sector of the economy.
We are the great nation who survived and coped with such difficult moments during the history as the Civil War, slavery. We are the nation that declared itself independent and became one of the greatest and strongest countries in the world. So you do think that there is something we can't cope? I don't. I am confident that whatever difficulty we will meet on our way, we can cope with it because unity is our strength.
Eichengreen, Barry J. Golden Fetters: The Gold Standard And The Great Depression,
1919-1939. New York: Oxford University Press, 1992. Print.
Hamilton, James D. 'Monetary Factors In The Great Depression'. Journal of Monetary
Economics 19.2 (1987): 145-169. Web.
McCarty, John. 'The Great Depression'. American Experience. N.p., 2015. Web. 13 Dec. 2015.
Smiley, Gene. 'Great Depression: The Concise Encyclopedia Of Economics | Library Of
Economics And Liberty'. Econlib.org. N.p., 2015. Web. 13 Dec. 2015.
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