How Did Hoover And Fdr Respond To The Great Depression

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The Great Depression, which sank the nation into a period of economic distress, began with “The Stock Market Crash of 1929.” With the results of high unemployment rates, immense poverty, and the national banks declaring bankruptcy. Presidents Herbert Hoover and Franklin D. Roosevelt each put different plans into place to deal with the crisis and lead the country. The differing ideologies of Herbert Hoover and Franklin D. Roosevelt profoundly shaped their responses to the Great Depression. Herbert Hoover's conservative business approach, characterized by limited government intervention and reliance on voluntary efforts, led to worsening unemployment, increased corruption in businesses, and a failure to provide effective relief programs for the …show more content…

Roosevelt’s New Deal initiative introduced relief, recovery, and reform, which successfully reduced the economic crisis by directly assisting the unemployed, stabilizing financial markets, and restoring public confidence in government intervention. With the final moments of World War 1, the country's weapon industry made around seventeen billion dollars (World History Project, 3:23–36), which changed the economy drastically. Acting as a stepping stone for the roaring twenties, was a period of social, political, and economic reform that created a rise in the nation's economy and a rise of consumerism, leading to investors seeking more monetary assets, creating an increase in the stock market, and a high demand for entertainment, such as radios and cars. But with the high demands reaching the banks, banks hadn’t set up a proper and effective system for disrupting money at high amounts. This eventually led to banks declaring bankruptcy, which led to the 1929 stock market crash. Many investors borrowed loans, which deepened the debts of banks. So when the stock market crashed, investors rushed in to salvage their losses due to the immense debt left over. With several assets lost, investors and businesses both contributed significant amounts of money to the …show more content…

In the beginning years of President Herbert Hoover's presidency, who was president during the time period, he was faced with an economic crisis from the Great Depression, which was the result of the stock market crash of 1929. President Hoover struggled with these challenges in addressing the issues. His response to these worsening conditions reflected his ideologies of a conservative business-oriented approach and refusal to use the government for the American people. which led to worsening unemployment, increased corruption in businesses, and a failure to provide effective relief programs for the American people. His stance on the matter, along with his ineffective tactics, deepened the suffering experienced by many Americans. Herbert Hoover's response to the Great Depression was largely shaped by his conservative business approach, which prioritized limited government intervention and emphasized restoring confidence in the business community. As mentioned by ACC, "Hoover applied a conservative business-oriented approach... rather than governmental interference in the

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