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What Is Hoover's Response To In The Great Depression

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Evidence proves that the Great depression took a huge economic toll on the lives American citizens. . On October 29, 1929 the stock market crashed leaving many bankrupt and others to go as far as to committing suicide. During the following months over 9,000 banks failed eventually leading to a depression. The great depression left many homeless and in extreme poverty; African-Americans were doing the worst. Similarly on September 16, 2008 the stock market crashed owing to the exposure of subprime mortgages and credit default swaps. The 2008 crisis left many people homeless and in extreme poverty. Although the two events that left many in poverty were very similar; the responses towards poverty between these two time periods were very different. It is important to understand the differences in reactions …show more content…

In December 1929, as a means of demonstrating the administration’s faith in the economy, Hoover reduced income tax rates by 1 percent because of the continuing budget surpluses. By 1930 the surplus had turned into a deficit that grew rapidly as the economy contracted. Smiley says that Hoover had decided to recommend a large tax increase in an attempt to balance the budget; Congress approved the tax increase in 1932. Personal exemptions were reduced sharply to increase the number of taxpayers, and rates were sharply increased. The lowest marginal rate rose from 1.125 percent to 4.0 percent, and the top marginal rate rose from 25 percent on taxable income in excess of $100,000 to 63 percent on taxable income in excess of $1 million as the rates were made much more progressive. We now understand that such a huge tax increase does not promote recovery during a contraction. By reducing households’ disposable income, it led to a reduction in household spending and a further contraction in economic

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An incredibly devastating time for many Americans, the early 1930s introduced the country to the nightmare that was the Great Depression. Sparked by the Stock Market Crash that took place on Monday, October 19, 1929, the Great Depression was the most severe economic downturn in American history. On that infamous Monday alone, investors lost 14 billion dollars and by the end of the year their losses had tripled.   In the 1920s, it was estimated that four to five banks opened up around the country on a daily basis.

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No matter if a country was considered rich or poor, the Great Depression had devastating effects. The unemployment rate increased dramatically, going from 3% to 25%. For the people who were lucky enough to still be employed during this horrible time, their wages fell 42%. However, the crash of the stock market is not the only thing that caused the Great Depression. In the middle of the 1930’s, a severe drought struck and it ruined much of the agriculture of the United States, which was known as the Dust Bowl.

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THE GREAT DEPRESSION 1929 was the start of the deepest and darkest time for the United States Stock Market and the people of the United States. The Market crash, the loss of American jobs and homes, lead to one of the hardest downfalls in American history. Along with billions of dollars lost due to bad stock trading, over extending on personal credit and the spending of money that had yet to be produced. The American people never stood a chance and in a matter of 10 days the lives of almost everyone changed. In 1928 Herbert Hoover was elected as president.

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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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Regardless of location, the American people suffered during the Great Depression. It all started with the Stock Market Crash of 1929. People used credit too often and didn’t have the money to pay for what they were buying. Levels of unemployment started to drop as companies started to laid off workers. From 1929 to 1933, one in every seven businesses failed.

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Teddy Roosevelt: The 26th President of the U.S. He served from 1901 - 1909. He was born In New York City on October 27, 1858 and died on January 6, 1919. Roosevelt was known for his progressive policies and breaking up monopolies.

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There were a lot of things that happened, but even with all this people never gave up on each other they helped each other. When push came to shove people helped each other. So many people can’t even work to make a living and put bread on the table. The Great Depression became worse because of greed from business owners and bad leadership and he thought that the economy would fix it self from President Hoover.

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Herbert Hoover was the 31st president of the United States (1929–1933), He was well known by the stock market crash of 1929 and the beginnings of the Great Depression. Hoover was a republican. He ran his campaign Promising to bring continued peace and prosperity to the nation. He made history at his time when he became president he crushed Democratic candidate Alfred E. Smith (1873-1944), the governor of New York, by 444-87 electoral votes. All eyes were on him when he stepped up to the job.

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The Great Depression was one of the most devastating economic crises in the history of the United States. It began in 1929 after the stock market crashed, setting off an economic spiral. Lasting for a decade it caused widespread unemployment, poverty, and social unrest. The economic collapse had devastating effects that had impacted everyday American life, including individual families, to the national economy, and even the government. During this period of time the American people faced a range of challenges including, unemployment, homelessness, starvation, and social inequality.

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Hoover said, "No matter how devised, an increase in taxes in the end falls upon the workers and farmers, or alternatively deprives industry of that much ability to give employment and defeats the very purpose of these schemes” (December 9, 1930: Message Regarding Unemployment Relief). Hoover viewed raising taxes as something

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A system based upon-short term investments and faulty investment practices did not provide the support for the stock market to perform consistently on a long term basis. To make matters worse, a national federal banking system designed to regulate the monetary financial system, The Federal Reserve, stood largely idle through excessive lending and faulty credit and operated on a open market according to the Library of Economics and Liberty. The stock market started to take a turn for the worse when investors overseas could see the path the American economy was heading down and promptly decided to cash out their investments (digitalhistory.uh.edu). The value of stocks in the stock market continued to decline and banks, which had invested heavily

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The Great Depression affect the various segments of American society due to having thousands of business failed. During this time period, over 25-33% of the population were unemployed. The Upper and, middle classes believed that people were poor since they didn’t work hard enough or that they didn’t work at all - stating “work hard and you too can be successful”, but failed to realize their economically unstable because they can’t find support to have a stable lifestyle. As an addition to poverty it increased the crime rates in the cities, since people were unemployed they’ll do anything to survive. As for others, they were hopeless and ended their own life committing suicide.

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In what ways did the Great Depression affect the American people? After a decade of economic prosperity, what seemed like an era that defined the concept of the American dream, quickly came to an end when the stock market on Wall Street collapsed in 1929. The aftermath of the events that occurred on Wall Street would put its heavy mark on the years to follow among the citizens of the United States. Banks closed down, unemployment rose and homelessness increased. It was a widespread national catastrophe that had its impacts on both poor and rich.

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Effects of the Great Depression The Great Depression was a hard time for the people of America. The Depression lasted from 1929 to 1941. The Depression began when the stock market crashed in 1929. The banks lost almost all of the American people’s money. 30 billion American dollars were lost!

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