Great Depression Essay

580 words - 3 pages

In the late 1920’s, the United States was embedded in the Great Depression by their economic problems. During this devastating event, American lives were affected. President Herbert Hoover and President Franklin D. Roosevelt would develop solutions to affect America’s economy. By their strategies, they hoped to overcome the impacts of the Great Depression. They hoped America’s economy would prosper again.
In 1929, the stock market had crashed. Many Americans made investments by buying on the margin. The stock values had dropped dramatically. Record numbers of people were without jobs. People had no money and they couldn’t support their government. As a result, taxes were high, and the government had faced many income problems. Exchanges in trade had stopped. Farmers didn’t find any markets for their production, and the families’ savings had vanished. Both President Herbert Hoover and President Franklin Roosevelt tried to find strategies to help the people and keep the American economy running.
President Herbert Hoover followed the “trickle-down” theory - if the government legislation protected the health of big business, their continued investments would expand the economy. For example on “trickle-down” (Document 5) was the Reconstruction Finance Corporation (RFC). It authorized up to $2 billion for emergency financing for banks, life insurance companies, railroads, and other large businesses. Hoover believed that the money would “trickle down” to the average people through job growth and higher wages. As a result, the investment expanded the economy by jobs, and higher profits. But, Hoover’s idea to help the American economy was a failure.
According to Document 3, the graph shows that in 1932, 12 million people were unemployed. The same year American people demonstrated that they wanted change. They elected the...

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