Hoover Solutions To The Great Depression

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The Great Depression, beginning in 1929, was a major crisis in America during the twentieth century and effected many lives. Many people lost their jobs, along with all of their invested savings. Working to stop the Great Depression, President Herbert Hoover took various steps to alleviate the problems caused by the Depression. The steps he took, however, did not ease the problems the Great Depression created. For this reason, the public blamed Hoover, calling for a new president. In the election of 1932, Franklin D. Roosevelt easily defeated Hoover. As the new president, Roosevelt faced many challenges in endeavoring to halt the Great Depression. He devised plans, some which are still in effect today, that would help him accomplish this great…show more content…
As a result of this crash, 40% of the paper values of common stocks were erased, which meant that most of the invested stocks were worth very little. This caused banks, businesses, and any other investors, to lose everything they had invested. The result was widespread unemployment and the failure of many businesses. A solution was needed. Herbert Hoover, the president at the time, developed a plan to repair the issues in the economy. These steps included eliminating foreign trade, buying grain to stabilize the price, and advising businesses to maintain production and keep wages high. None of these solutions were successful, and in fact, the public even blamed Hoover for the Great Depression. For this reason, the American people desired a new president to be elected, who could solve the economic problems. Because of the failures of President Hoover, he was defeated in the election of 1932 to Franklin D.…show more content…
Together, they devised a plan of action to end the Great Depression called the New Deal. This was part of his campaign slogan, “I propose a New Deal.” This 1st New Deal was made up of government programs, designed to stimulate the economy. Some of the important programs included the Emergency Banking Relief Act, which forbid the hoarding of gold, and the Banking Act of 1933, which established the Federal Deposit Insurance Corporation (FDIC), to ensure that people would not lose their money that was invested in banks. To decrease the unemployment rate, Roosevelt developed programs that created jobs involved with big government projects, such as building dams and bridges. By doing this, people obtained jobs, creating money flowing in the economy again. To help aid this, the government added money into the economy to create more demand for work and cause money in the economy to move. Another of Roosevelt’s solutions was the 2nd New Deal, which focused more on helping the elderly. This act established Social Security to provide for older people who couldn’t work anymore. Many of the programs Roosevelt created helped to fix the problems of the Great Depression and restore the economy. Even today, some of these programs that Roosevelt developed during his presidency still exist and are contributing to our
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