Dear friend I am happy to finally be writing to you as I am sure you have heard; my country is coming out of a great financial depression. The depression still looms as our economy is not yet stable, but we hope it never gets as bad as it was. Even before the depression officially started, farmers were struggling with less demand for their products and soil exhaustion. It must have been even worse for them during this economic struggle. Just before the depression, I read how people were not buying goods at the rate they used to, like automobiles. Everyone who wanted an automobile and had the means to afford one had already bought one! The decrease in sales caused many shops to decide to cut costs on their goods, causing them to have to let go of employees, and then have to drop prices even more. This trend exponentially sped up the economic decline because fewer people had jobs and the money to buy goods. The stock market …show more content…
Herbert Hoover, who was the president during the start of the Depression, thought that the economy would bounce back soon and recover quickly. Once he realized that there was a major problem with our country, he tried some very ineffective ways to fix our economy. At first, Hoover encouraged volunteerism, where he asked people to maintain their investments and he encouraged states to create charities. Hoover claimed that if he used the government's power to help the people it would destroy their work ethic and he continuously resisted taking direct action even as the economy spiraled and many others begged him to reconsider his approach. Franklin Roosevelt became our next president after Hoover, as he won with a very decisive victory. Roosevelt took direct action in fixing our economy as he proposed higher wages, and new job programs, and created the New Deal. Roosevelt took action to fix our nation by making real changes and helping those in