Question

What was President Hoover’s advice to businesses during the early years of the depression?

A. He asked them not to fire employees and to give relief aid to employees
B. He asked that they cut prices so people could afford to buy
C. He told them that the government would pay them to stay open
D. He encouraged them to do whatever necessary to stay in business

Answer 1

President Hoover encouraged businesses not to lay off employees and to continue production to support the economy. His policies also included tax cuts and facilitating loans, relying on voluntary measures and minimal government intervention which ultimately proved insufficient.

Step-by-step explanation:

President Hoover's advice to businesses during the early years of the depression was to sustain the economy by maintaining employment and production levels. He urged industrialists to keep wages stable and persuaded utility and railroad executives to invest in new construction projects.

Hoover also encouraged a spirit of volunteerism among businesses and the American people, an idea rooted in his belief in American individualism and minimal government intervention. His approach manifested in tax cuts, facilitation of loans through the Reconstruction Finance Corporation, and supporting private relief agencies. Despite these efforts, they were insufficient to counter the economic crisis, and direct federal aid was minimal under his presidency.