The Pros And Cons Of The Great Depression

The Great Depression was due to the stock market crashing and the fear of risking what was left and decided to but a pause on any economic activity. Throughout this time period we elected two Presidents, Herbert Hoover and Franklin D. Roosevelt. Throughout the Depression Roosevelt had the most effective policies than Hoover.

President Hoover was part of the Republican Party. He took office in 1929 when the American economy was at its high and when he left it reached its twentieth century low. The Great Depression occurred and he sprang into action by calling a White House conference of business and labor leaders and recommended that they accompany in the voluntary plan for recovery meaning businesses would maintain the same and all the workers would still have jobs. Also labor would keep the same wages, hours, and conditions. But after a few months the plan did not work out and the demand for products started to decrease which meant that they had to cut production, wages and lay off some of the workers, causing the economy to decline.

Congress passed the Agricultural Marketing Act in 1929 that created Farm Board, which used 500 million dollars to buy agricultural surpluses in hoping to raise the prices but it had the opposite affect and the prices were declining. In 1930 the Hawley-Smoot tariff established the highest rates in history. Also Congress approved 420 million dollars for public works projects to give the unemployed some work.2

The economy drained over the years that Hoover was in term. The taxes didn’t end the suffering of the farmers because foreign nations increased their tariffs. In 1932, Hoover created the Reconstruction Finance Corporation, federal agency enabled for endangered banks and corporations borrow go...

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...the Reconstruction Finance Corporation because the nation’s banking system was about to collapse. Congress passed the Glass-Steagall Banking Act, guaranteed bank customers that the federal government would refund them for deposits if their banks failed. On March 12th Roosevelt made a broadcast that was also the first of a series of fireside chats, speaking in a friendly and unofficial manner, and explained that the people would be better off keeping their money in the bank than keeping their money with them in their houses. After a few of the fireside chats, people started to believe it and most of the major banks reopened.

The Great Depression lasted for a period of time in which America elected two different presidents, Herbert Hoover and Franklin D. Roosevelt. Both had policies that they used to help with the economy downfall but Roosevelt’s were more effective.