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How Did Hoover Lead Up To The Great Depression

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October 29, 1929 was perhaps one of the most dreadful days in American history for its economy. Before “Black Tuesday”, as it was known, stock prices had been dropping. As a result, America experienced a devastating reality known as the Stock Market Crash. Many economists hold the belief that it was caused due to people “buying on margin”. The effects of this were detrimental and quickly lead us into a depression, and not only for America, but around the world as well. Our unemployment rate had been as high as 25%, and for other countries rose to 33%. Every industry was affected by this depression one way or another. The president of the United States at the time of this economic collapse was President Herbert Hoover. He recognized that Americans …show more content…

This basically meant that he thought each person had the capability to help themselves out of the situation they are in. In addition, he believed that businesses would recover on their own and if they recovered, everything else would return to normal. For this reason, he took a more “laissez-faire” approach. A tremendous amount of people despised this method, and so Franklin D. Roosevelt was voted into office in the Election of 1932. President Roosevelt approached the economic disaster at hand much differently from that of Hoover. Unlike Hoover, Roosevelt thought that it was the government’s job to protect and provide for the people during this time. To combat this immense issue occurring, FDR proposed what was known as the “New Deal”. This consisted of the proposition of many new agencies to provide relief, recovery, and reform. Historians called this the “3 R’s”. Each one of the r’s were for a certain task: relief for the struggling and needy, to recover the economy, and reform the system financially to ensure that a depression never happened again. He believed that through the many agencies he created, they would do just that. Many historians believe that the New Deal was a failure, but the successes of it outweighed its

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Hoover understood that not being involved into the lives of the American people worked for Coolidge, if something is going well, there's no need to change it. Until the Great Depression in 1929 he kept that mentality, but something needed to change and was expected of him when the economy was so low. He created the Reconstruction Finance Corp. with the 3 platforms of volunteerism, localism, and rugged-individualism. Describing volunteerism as helping each other out and the need to get involved, localism focused on state governments to make their attempt to fix the problem first rather than the federal government, and rugged-individualism was this new term of growing character and that American culture of fixing things out on their own and after getting through the rough and tough, they will succeed. “Economic depression cannot be cured by legislative action or executive pronouncement “ (DOC C).

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. Compare and contrast the responses of Herbert Hoover and Franklin D. Roosevelt to the Great Depression. a necessity for survival, Hoover as well as Roosevelt had their work cut out for them to save their nation from the grips of this depression. Bothe hoover and Roosevelt did share some common attributes when it came to approaching the great depression. Both presidents tried to rely on and use the federal government to help the economy, more so than any previous president before them.

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The wealth during the 1920s left Americans unprepared for the economic depression they would face in the 1930s. The Great Depression occurred because of overproduction by farmers and factories, consumption of goods decreased, uneven distribution of wealth, and overexpansion of credit. Hoover was president when the depression first began, and he maintained the government’s laissez-faire attitude in the economy. However, after the election of FDR in 1932, his many alphabet soup programs in his first one hundred days in office addressed the nation’s need for change.

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He promised that the government would intervene in the economy to provide relief for the great depression, he proposed a ‘new deal’ that would give millions of Americans jobs and create a more stable US economy. “Roosevelt faced the greatest crisis in America since the Civil War.” (Franklin D. Roosevelt Biography). In the beginning of his presidency, he began to make good on his promises, he created many agencies and associations to help get the economy under control and to help lower the unemployment rate. As the economy was stabilizing and the unemployment rates and GDP were beginning to rise back up to normal levels, he fell under criticism for putting too much power in the government’s hands for controlling the economy.

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The collapse of the economic had began in 1929. Herbert Hoover was known because he ha run for the food administration in World War 1. Alfred E. Smith was the four time governor in New York, he was Roman Catholic to win a majors party for president. On March 4,1929 they had an audience of 50,000 land lide. Herbert went to the White House that swept everything into stock prices.

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The transition between presidents Herbert Hoover and Franklin Roosevelt marked the transformation from a weak, to a strong form of government, which became directly involved in the lives of the people. This was primarily caused by the difference in the executive leaders ideologies, where Hoover was more focused on individual responsibility and capitalism, Roosevelt was more concerned with immediate action based on government intervention. Overall, the New Deal sacrificed the amount of personal responsibility that the people had with their own economic security. The power of the federal government was strengthened, but the long-lasting effects based on the social and economic policies was beneficial for the United States. Herbert Hoover began

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Roosevelt, who created ample government programs to aid both the economy and the people. FDR immediately began his prospective presidential career by differentiating himself from previous president Herbert Hoover, through his identification of Hoover’s errors and his provision of solutions to those errors. An example of this was seen in one of FDR’s candidacy speeches (doc E) where he argued Hoover made too many unnecessary departments, that had too much money tied up in them, additionally arguing that Hoover’s tax increases were unsuccessful in lowering the federal government’s deficits. The solutions to these mistakes were posed in the New Deal, a series of programs designed to provide relief, recovery, and reform. Relief programs provided immediate help to the economy and prevented further collapse, recovery programs were supposed to reinvent the economy, and reform programs were put in place with the purpose lessening the impact of future depression on the economy as well as individuals.

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The Great Depression was a time during 1929 to 1939, It was the longest lasting economic disaster. The two presidents in term during this crisis, Franklin D. Roosevelt and Herbert Hoover, approached this problem in different ways. Hoover’s idea on this was to have private citizens help each others, while Roosevelt believed the government should take care of its people with social programs. Looking at these ideas in more depth we can infer ways our country should go. Herbert Hoover served as president during 1929 to 1933.

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During the Great Depression, President Hoover had stood with his philosophy of limited government, which he believed the economy would recover on its own. Hoover would refuse to give handouts or provide financial donations, because he saw this as direct government aid. Instead, Hoover had asked for other American businesses to keep workers employed and continue production, and for all citizens to hold on tight and make it through these hard times by following “rugged individualism.” A term used by Hoover, a belief that all individuals can be successful on their own without much help from government aid. When tax revenues had collapsed because of the poor economy, in response Hoover raised the taxes, which caused more devastation to the economy.

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Being the President during that time, Hoover decided to maintain laissez-faire attitude and keep the government out of the economy affairs. But after Franklin D. Roosevelt’s election, government started to get involved into economic affairs and cooperating through the policy called

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Hoover President Herbert Hoover didn’t believe that it was the federal government’s role to provide direct relief. Instead he suggested voluntarism, asking corporations to improve working conditions and wages. Lowering income taxes was another idea promoted by Hoover. If people would spend less on taxes, they would invest in stock market and purchase products. Hoover refused against any form of a welfare program.

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President Roosevelt's New Deal had three main goals. The first was to provide and help to millions of suffering Americans. The second was to improve the economic drought we got ourselves into. The third was to

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In 1933, Franklin D. Roosevelt became the president of the United State after President Herbert Hoover. The Great Depression was also at its height because President Hoover believed that the crash was just the temporary recession that people must pass through, and he refused to drag the federal government in stabilizing prices, controlling business and fixing the currency. Many experts, including Hoover, thought that there was no need for federal government intervention. ("Herbert Hoover on) As a result, when the time came for Roosevelt’s Presidency, the public had already been suffering for a long time.

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The Great Depression The Great Depression was by far one of the worst times of America’s history, and the world’s history. The Depression affected everyone except for the politicians and the wealthy. During the depression a lot of people lost their jobs which caused the unemployment rate to sky rocket to 14% of America’s population was unemployed, and the number would stay their till World War 2, and the depression started in the 1920’s. Middle class workers were hit the hardest in the depression. Most of the middle class citizens lost their jobs.

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In 1929, the U.S. was hit with the worst economic crisis in the history of the country, the Great Depression. The Great Depression left millions of people unemployed and cost millions their life's savings. The Depression lasted for ten long years for the American people. Since the Great Depression ended, people have studied it, trying to figure out what happened that started it all. The problem was, in fact, the poor economic habits of the people at the time, such as speculation, income maldistribution, and overproduction.

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