How Did The Great Depression Affect America

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The Great Depression had very devastating effects throughout America. It hurt people of all classes and races. The government attempted to help as much as possible, with actions like the New Deal. Immediate relief was needed, as the whole country’s economy was plummeting rapidly. Herbert Hoover took office and was soon overwhelmed by the sudden crisis. Franklin D. Roosevelt took office after Hoover’s first term, hoping that his plan will help America’s economic issues. Although economic relief came very slowly at first, the New Deal and other legislature provided substantial aid for the country. However, it was not enough for the average family to fully recover. The Great Depression came very abruptly and soon caused panic throughout…show more content…
Companies lost a lot of their money, so they couldn’t afford to keep all of their employees. The unemployment rates then rose quickly, reaching about 25% in the early 1930’s. The men without jobs were very desperate for anything that would give them money. There were soup kitchens and shelters for the unemployed, and they were quickly filled. Many people became homeless because they didn’t have the money to pay for a place to live. People started to live in communities known as “Hoovervilles”. These were small towns of huts and makeshift shelter for the homeless. Hoover was blamed for causing the Depression by many, even though he did not have anything to do with it. Many people defaulted on bank loans that they received. This ruined their chance for future loans, as they had bad credit. Thousands of banks failed because of defaulting and the loss of money from stock market investments. There were even droughts in the midwest, making it harder to sustain their agricultural economy. The Great Depression had many immediate effects that hurt everybody in…show more content…
His idea was volunteerism, and he hoped that people and businesses will help the country through voluntary actions. His plan did not work out well, so him and Congress needed to start making laws to help the economic crisis. The Smoot-Hawley Act was passed in 1930, which increased tariffs. He hoped it would spark an increase in domestic industry, however it just eliminated the trade of certain goods with other countries. The National Credit Corporation was made the next year. The purpose of this was to help smaller banks from failing. Part of this was that bigger banks would have to give money to the small banks, which they did not want to do. The whole plan ultimately failed because of this. More action by Hoover includes the Federal Home Loan Bank Act, the Emergency Relief and Construction Act, and the Reconstruction Finance Corporation. The Federal Home Loan Bank Act made it more affordable for people to buy homes, and it created banks to loan for mortgages. The Emergency Relief and Reconstruction Act was the first main act with the focus of relief. It gave funds for public projects around the country. Finally, the Reconstruction Finance Corporation provided money to state and town governments. Herbert Hoover started out slow, but he then passed some legislation to help the country
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