Industry thrift and self reliance promoted efficiency

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Industry, thrift, and self reliancePromoted efficiency doctrinesDetermined to avoid foreign entanglementsHoover was shy, standoffish, and stiffoAccustomed to giving ordersoHe was able to gain votes from loyalty, honesty, humanitarianism, and preaching of efficiencyoIdeal businessperson’s candidate- self made millionaireoHad sort of progressive instincts as secretary of commerce- thought about government owned radio stations for a bit
oPeople were mean during the election- attacked Smith’s religion- Hoover tried to stop it to no availoHoover won 444 EC to 87oHuge R majority in HouseoHoover had carried the first seceded state for a R candidate except for Harding in TN in 1920- got 5 confederate states and all border statesPresident Hoover’s First MovesoUnorganized wage workers and disorganized farmers were not getting enough moneyoRest of the economy was booming- stock market skyrocketingoResponded to the farmersoAgricultural Marketing Act in 1929- established a Federal Farm Board- fund of half a billion dollarsoMoney given generously to farm organizationsoIn 1930, the Farm Board created the Grain Stabilization Corporation and the Cotton Stabilization Corporation- goal was to buy up surplusesoCorporations were soon filled by the abundant surplusesoWheat dropped to fifty cents a bushel and cotton five cents a poundoHoover during the campaign was pressured into a political promise- call congress into special session to discuss farmer relief and limitedly changing the tariffoHawley-Smoot Tariff of 1930Started moderate in the house to help farmersBy the time lobbyists got to it in the Senate, it had like one thousand amendments Turned out to be the highest protective tariff if our peace time historyRose to 60%!!!!!!!!!!!! Ended the trend of worldwide passing more reasonable tariff to support tradeSent America and other nations into deeper depressions Increased international financial chaosMore isolationism- again…Economic isolationism setting the stage for Adolf HitlerThe Great Crash Ends the Golden TwentiesoWe had a long boom during the 1920s that seemed endless except to farmersoHoover attempted to curb speculation through the Federal Reserve Board butit continued to riseoCrash in October of 1929CausesBuying on margin- out down 10 percent of value and buy stocks oUse profit to pay back investorsoCover margin if stock goes down
oValue decreases when everyone sellsInvestor pools/painting the ticketoPeople use the reports of the stock marketoEach person drives the price u by selling it between a small group and raising the priceoWill go back down once they sell itoArtificially inflated value- federal crime nowMiddle class dominating- don’t know how it worldVery few rulesOver investments- corporations invest in market instead of improving the companyToo much production!!!

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