As the American boom turned to bust President Hoover didn’t act upon the change but instead predicted that this negative change would not last the country would Boom once more. Unfortunately as the depression spread and began to affect everyone in the country he realised that his government would have to take charge. Hoover and his government are famously accused for having done nothing however this claim may not have been completely true.
Farmers produced to much food therefore they had to lower their prices. Consequently famers had even less money however they thought by growing more food they would gain more money however this did not work and it forced the farmers into lowering the prices further. Hoover’s action upon this was to buy food of the farmers but this had little effect as the slide in prices was too grand and the government did not have enough money to keep up buying stock. Although Hoover took action on this problem his actions were not sufficient and as the people did not see a positive change in the food prices they assumed he had failed to take action.
Employees wage dropped which caused workers too not have enough money to buy all the goods which were being made. Hoover instructed workers to make voluntary agreements with their workforce which would then steady production and keep wages up Hoover thought, but it didn’t work out.
Experts correctly predicted that banks would lose money which caused a lack of confidence in its customer’s; they began to withdraw all their money thinking it was safer under a mattress than in a bank. Banks then could not lend to businesses which caused wage cuts and more unemployment. Hoover provided loans which totalled $1500 million for businesses to get back up and running.
Due to the tariffs for selling goods to foreign countries there was no trade between America and the rest of the world. Hoover acted strongly on this issue and...