How Did President Hoover's Failure To Respond To The Great Depression

On the 29th of October 1929 the United States (U.S.) stock market fell to a new low. By November of that year, about thirty billion dollars in the market value of stocks had been lost. Half the value of the stocks listed in the New York Times index was lost in ten weeks. The stock market crash resulted in an undermining of confidence investment and spending of businesses. This resulted in a drastic decline in consumer spending. As a consequence, there had to be a cut in production resulting in massive layoffs. Banks began to fail because depositors withdrew their savings. Unemployment insurance did not exist and public assistance was grossly inadequate. As a result, there was wide spread suffering. President Herbert C. Hoover apparently did not appreciate the gravity of the situation when he said in his 1931 State of the Union address “our people are providing against distress from unemployment in true American fashion by magnificent responses to public appeal and by action of the local governments.”
President Hoover hinged the recovery plan on the restoration of business confidence.

The national economy improved significantly. Unemployment declined in 1937. However, in that same year, the country again fell in a steep recession because the stock market again plunged. This was clear evidence that the regulatory measures were not particularly effective. It became more difficult to pass new reform measures by 1938 because the Republicans became stronger in Congress. Despite all the programs put in place, property ownership remained largely unaltered, and the distribution of wealth remained unequal. The economic plight of African Americans, migrant workers, share croppers and other minorities saw little change. Water, power and agricultural policies transformed some areas of the west and south. Social welfare legislation and federal relief programs did assist certain segments of the