How Did President Hoover React To The Great Depression

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Reactions of The Great Depression
Question 1 & 2: The crash of the U.S. stock market in October 1929 and the Great Depression did not immediately cause an economic decline. The U.S. economy was flourishing more than any other nation in the 1920s, until the beginning of the Great Depression, in which it then suffered sharp declines in manufacturing and employment. One outcome of the Great Depression was the collapse of world trade. Increasing taxes on imported goods brought on the intense decline. It was very clear that the world was headed into a global crisis. Between 1929 and 1933, 100,000 businesses failed, corporate profits fell from $10 billion to $1 billion, and around 6,000 banks failed which resulted in a $2.5 billion loss to families …show more content…

Hoover didn’t let the false ‘pointing of fingers’ get to him and constituted a thoughtful plan. President Hoover urged Americans to turn to their community and church resources such as the Salvation Army, Community Chest, and Red Cross to meet needs of the poor. Local and state authorities also began to take responsibility in assisting individuals. Above all, it was a decade of cultural uproar, in which American writers, artists, and intellectuals experimented with new, forms of literature, painting, theatre, music, and mass …show more content…

The Great Depression was undeniably an era of extraordinary political innovation. To combat the crisis, President Hoover preferred a conservative approach to increase economic growth. He believed in the laissez-faire principle of less government control to give more power to businesses and in the end stabilize the economy. Hoover felt that stabilizing the business community would cause prosperity to “trickle down," according to the article “The Great Depression and the New Deal: 1929-1940s” on the Collin County Community College website. In 1932, President Hoover set up the Reconstruction Finance Corporation (RFC) to make a half billion dollars in "pump-priming" in hopes of improving the economy. Franklin D. Roosevelt’s New Deal attempted to deal with the problems of poverty, unemployment, and the disintegration of the American economy. It was also a time when a significant number of Americans played with Marxist

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