Rebeca Hyatt

After the economic boom of the 1920s, the United States entered a period of prolonged economic depression. This period in time was known as the Great Depression. Many of the United States citizens were affected by this. President Hoover, and President Roosevelt. Several economic initiatives were developed to limit the effects of the Great Depression, and to allow the American economy to prosper once again. Hoover and Roosevelt both had ways of dealing with this tragic time in American history, and both ways had a different success rate then the other. Many economic problems existed before the Great Depression, that caused the Great Depression. Many people before the Great Depression bought stocks on Margin, which is when investors by stocks by borrowing money from brokers, which is a form a credit. Another reason was the unequal distribution of wealth, a small percentage of the American economy held most of the wealth. Overproduction of farm and industrial goods lowered the prices. However, according to the New York Times, the stock market crashed but they rallied (Doc 2), on the day it crashed. Unemployment by 1933, had reached a little over 12 million people (Doc 3), simply due to the effect the stock market had on society, and businesses. Herbert Hoover, was the President of the United States when the Depression started. Hoover was a republican. He thought it was the role of the communities to help the people, not the government. Hoover used what was known as the Trickle-Down theory. Republicans reasoned that if the government legislation protected big corporations, their continues investments would expand the economy, and a better life would go down to the workers and consumers (Doc 5). Roosevelt was elected President after the Hoover administration. Great unemployment, loss of life savings, no markets for farmers and high taxes were causes problems that the United States faced during the Depression. Roosevelt implied strict supervision of banking and credit, and putting people back to work (Doc 4). Roosevelts method was the pump-priming which was when the government would take actions that would make consumers in the public secure and optimistic and by increasing the government programs, the business would increase, and foster consumer confidence and investment (Doc 5). Roosevelt made programs that helped everyone, such as the FDIC which was the Federal Deposit Insurance Corporation. The CCC was the Civilian Conservation Corps, which employed men, which helped create

jobs for the economy. Hoovers and Roosevelts success were both different. Hoover, didnt really help the people that

much, while Roosevelt, did help the people, he made different programs that helped out society, and our economy. Hoovers turning point in his 4 year term was the Bonus Army March, when he told the WWI veterans to disband, and some refused to leave, so Hoover had them gassed out of there. All the veterans asked was that they get there bonus early, due to the hard times, and Hoovers image was tarnished. Also, due to the lack of Hoovers aid to the people, people called shanty towns Hoovervilles. However, Roosevelt restored confidence in the people. Fireside chats, made people feel like Roosevelt was actually talking to them, and the aid Roosevelt provided to the people, made people feel safe, and made them happy, which helped aid the people through the depression. WWII was the turning point, which helped people everywhere become socially stable. It employed a lot of people and helped the economy prosper once again. In conclusion, many Roosevelts and Hoovers plans were different, however, they both played a role in American history.