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2 votes
What caused Herbert Hoover to raise taxes during the Great Depression?

2 Answers

3 votes

Answer:

After the 1929 stock market crash, the Smoot-Hawley tariff of 1930 raised import prices and more importantly threw a bucket of cold water on global trade flows, helping send the economy into deep depression. The economy had very little chance to recover. Along with gross and ongoing monetary policy mismanagement, President Hoover raised taxes in 1932. The consequences were devastating. As Alan Reynolds points out

answered
User Gurushant
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8.4k points
4 votes

Answer:

Herbert Hoover tried to cut taxes in an attempt to end the Great Depression. After that, he raised them back in an attempt to cover the deficit created by the previous cut.

answered
User Alanmars
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7.9k points
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