Hoover’s response to the depression, 1929–33: the Smoot- Hawley Tariff;…

The idea

President Hoover’s response to the depression combined voluntary cooperation, limited federal intervention and faith in self-reliance. The Smoot-Hawley Tariff of 1930 raised duties on over 20,000 imported goods, aiming to protect US farmers and industry, but retaliation by trading partners reduced international trade. Homelessness increased as evictions and foreclosures rose; shanty towns known as Hoovervilles appeared, their name mocking the president. In 1932 the Reconstruction Finance Corporation (RFC) was created to lend federal money to banks, railroads and other large businesses, but it lent cautiously and did little for individuals. The Emergency Relief and Construction Act 1932 extended RFC lending to states for relief and public works, but funding was limited and slow to reach the unemployed.

What earns the marks

• The Smoot-Hawley Tariff (1930) raised tariffs on over 20,000 imported goods, intended to protect US producers but provoking foreign retaliation and reducing world trade.
• Homelessness grew as evictions and foreclosures increased; Hoovervilles were shanty towns named to criticise Hoover’s perceived failure to act.
• The Reconstruction Finance Corporation (RFC), established in 1932, lent federal funds to banks, railroads and large businesses to stabilise the economy, but its cautious lending limited its impact.
• The Emergency Relief and Construction Act 1932 allowed the RFC to lend to states for relief and public works, but the scale was small and slow, so it did not meet the needs of the unemployed.
• Hoover’s approach reflected beliefs in voluntary action, balanced budgets and limited federal responsibility, which shaped the scale and timing of his responses.

Common mistakes and how to put them right

• Stating that the Smoot-Hawley Tariff lowered tariffs.

  Put it right: It raised tariffs on over 20,000 imported goods.

• Claiming the RFC gave direct relief to unemployed workers.

  Put it right: The RFC primarily lent to banks, railroads and large businesses; the Emergency Relief and Construction Act 1932 extended lending to states for relief and public works, but it was limited.

• Describing Hoovervilles as government-built housing.

  Put it right: Hoovervilles were makeshift shanty towns built by homeless people, named sarcastically after Hoover.

Exam tips

• Explain the purpose and consequences of each measure, such as the Smoot-Hawley Tariff’s effect on international trade.
• Use the term Hoovervilles to illustrate public perception of Hoover’s response, linking homelessness to political criticism.
• Compare the scale of the RFC and the Emergency Relief and Construction Act 1932 with the scale of the depression to assess their effectiveness.