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    Thread: A Businessman as POTUS

    1. #1
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      A Businessman as POTUS

      Back in 1928, Herbert Hoover (R) was elected POTUS
      His business background constituted much of his political beliefs.

      As most of us know - Hoover was President when the Great Depression began in 1929.

      Now that Businessman Donald Trump will be President of the United States - could Trumps policies
      have similar results as Hoover?

    2. #2
      Hopefully Trump learned in school and/or via OJT, exactaly what caused the Great Depression - and
      that he will act accordingly.

    3. #3
      Hoover did not cause the great depression. It was well under way when he took office in 1929. The depression was more likely caused by:

      1. Americaís reliance on the gold standard. The government was obligated to redeem paper money with gold. This put a limit on the amount of money the government could print. When demand for money was too high, the government had to raise interest rates to discourage people from taking interest-earning money and converting it to gold. This caused even less money to be available for circulation, which brought on the panic which resulted in the depression.

      2. No cohesive economic policy. People who worked in finance believed that the government should stay out of the economy. Hoover had to fire Treasury Secretary Andrew Mellon because he refused to listen to Hoover regarding the dangers of a depression.

      3. The banking system. There were too many banks, and too many of them invested their funds in the stock market. The Federal Reserve, which only covered one-third of the nationís banks, was unable to save failing banks. As the banks failed, savings accounts were wiped out and the money supply shrank even more (see #1). This made it impossible for people or businesses to spend money or invest which would have stimulated the economy.

      4. Stock market speculation. Before the stock market crash in 1929, people were able to buy stock using loans. They would then sell the stock at a profit, using part of the profit to pay off the loan. If the stock dropped in price, they would not be able to sell it and therefore couldn't pay back the loan.

      In 1925, then Secretary of Commerce Herbert Hoover warned President Calvin Coolidge that stock market speculation was getting out of control. Once he became president, Hoover tried to persuade Wall Street managers that they needed to act with more caution. They refused to listen and the rest is history.
      Last edited by TCassidy; 01-17-2017 at 10:32 PM.

    4. #4
      Trump's proposed tariffs would be a disaster.

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