Chapter 26 Questions
Describe the first phase and second of Hoover’s policy at the start of the Depression?
Many people thought that if the economy reached a low point, it would fix by itself but Hoover did not want to believe that. He told businesses to keep up wages and called on the Federal
Reserve which ended up inflating the market. Since unemployment was so low and there was not relief money, Hoover created the Emergency Committee for Unemployment. Hoover realized that one of the main problems to the depression was that the European nations owed reparations, so he decided to further isolate the U.S from Europe.
How did the U.S try to isolate themselves from Europe?
Hoover expected war to be abolished forever, as in KelloggBriand Pact which promised not to use war to resolve "disputes or conflicts of whatever nature. This was showed when the U.S promised to abstain from intervention in Latin America, granted diplomatic recognition to smaller governments, and removed marines from Nicaragua and Haiti. There was also a conference in London with the English and Japanese which discussed each nation limited construction of capital ships and smaller ones. This conference greatly limited impacted the
Japanese naval power in the Pacific.
What were some of the U.S and foreign interactions end the depression caused by
U.S stopped the reparations with Germany and called for a one year pause on all reparations. The other countries also did this because they couldn’t afford to pay. To stop the loan problem with
America and Germany, the U.S froze the debts to give the nations time to fix their problems.
Many countries by1931 went off the gold standard except the U.S, Italy and France.
What were some of the direct outcomes of the depression? Due to the depression, wages got extremely low because immigrants and the poor were great sources of cheap labor. Unemployment was high because labor was cheap and people were easily replaceable. Businesses and banks failed due to poor credit and loans. Farmers