President Hoover And The Beginning Of The Great Depression

Ever wonder why, “Use it up, Wear it out, Make it do, or do without” was the motto during the Great Depression? This was because the Great Depression introduced Americans to struggles they had never faced before. The Great Depression was the most severe economic downturn America had ever faced, lasting from 1929 to 1939. It negatively impacted many countries around the world. During these harsh times, Americans faced a tide of unemployment, foreclosures and loss of buying power. Herbert Hoover as the president from 1929-1933 and the beginning of the Great Depression, barely made any changes to help Americans and the changes that he attempted made little to no difference for Americans but instead made it more difficult for farmers, homeowners and Americans in general while President Franklin Delano Roosevelt (FDR) came into office later but developed many solutions that helped Americans by making these solutions available

The circumstances caused FDR to state that the government must “provide at least as much assistance to the little fellow as it is now giving to the large banks and corporations”. This problem had very different solutions made by President Hoover and Roosevelt, mainly because of the different goals each solution presented. President Hoover's response to the housing crisis was the Federal Home Loan Bank Act (FHLBA), aimed at reducing the expenses associated with owning a home. However, the act's establishment of twelve Federal Loan Banks, allocation of 125 million dollars solely for mortgage loans (as a form of relief), and approval of only 3 out of 41,000 loan applications meant that the assistance was not accessible to all, rendering the act ineffective. Rather than increasing the approval rate for loans, Hoover's solution focused on creating more large banks, funds that could have been utilized to aid struggling homeowners during the challenging