Essay On Hoover's Response To The Great Depression
On October 29, 1929, Black Tuesday, the stock market crashed, plunging millions of people and their families into economic devastation. Within five hours, 10 billion dollars in market values vanished. Soon, the Great Depression, the greatest economic disaster in modern history, seized hold of the United States and the entire world. However, the crash of the stock market alone did not cause the Great Depression. Signs of economic problems such as frenzied real estate speculation, bank failures, land that remained undeveloped and foreclosed mortgages had become discernible even before 1929. The unequal distribution of income and the extended depression in farming areas reduced the purchasing power in America. After 1926, sales of household consumer
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The Communist Party formed unemployed councils and did marches and demonstrations for public assistance. They also protested the eviction of unemployed families from their homes. The press felt that America was on the verge of a revolution. In 1931, the Hoover administration declined efforts to save money by making the army smaller. He thought it would reduce the means of keeping domestic order and peace. To many, Hoover's response to the Great Depression was uncaring and incompetent. His view was that economic plunder was a normal part of capitalism that weeded out failing businesses and encouraged moral virtue among the poor. Businessmen were extremely opposed to the federal aid of the unemployed. The federal government had never had an economic crisis as severe as the Great Depression. Most political leaders did not understand how important consumer spending was in the economy. They just thought that government intervention to aid the unemployed would do little to spark economic recovery and encourage Americans to rely on government charity for their misfortunes. Hoover was loyal to the idea of maintaining investment and employment and actions by charity organizations to aid citizens. He established commissions to encourage firms to cooperate in maintaining wages and prices without government command. Hoover wanted to put the public at ease, however it just showed how out
The Communist Party formed unemployed councils and did marches and demonstrations for public assistance. They also protested the eviction of unemployed families from their homes. The press felt that America was on the verge of a revolution. In 1931, the Hoover administration declined efforts to save money by making the army smaller. He thought it would reduce the means of keeping domestic order and peace. To many, Hoover's response to the Great Depression was uncaring and incompetent. His view was that economic plunder was a normal part of capitalism that weeded out failing businesses and encouraged moral virtue among the poor. Businessmen were extremely opposed to the federal aid of the unemployed. The federal government had never had an economic crisis as severe as the Great Depression. Most political leaders did not understand how important consumer spending was in the economy. They just thought that government intervention to aid the unemployed would do little to spark economic recovery and encourage Americans to rely on government charity for their misfortunes. Hoover was loyal to the idea of maintaining investment and employment and actions by charity organizations to aid citizens. He established commissions to encourage firms to cooperate in maintaining wages and prices without government command. Hoover wanted to put the public at ease, however it just showed how out