What Problems Did The Government Face During The Great Depression

In Address of the President Delivered by Radio from the White House - May 7, 1933, President Franklin D. Roosevelt considered the economic and society problems faced in 1933 were because the government did not interfere in American businesses such as industries, transportation, and farming which led to the Great Depression. The American economy’s trade and commerce had declined as the value of the dollar was unstable to the point where houses and businesses were being foreclosed and banks could not give out loans. If the government did not get involved, it would “… allow the foreclosures to continue, credit to be withheld and money to go into hiding, and this forcing liquidation and bankruptcy of banks, railroads and insurance companies and a recapitalizing of all business and all property on a lower level”. FDR believed the difficult financial times would not only affect the economy financially, but society would lose their faith and hope for families in America. “It involved not only a further loss of homes, farms, savings and wages but also a loss of spiritual values – the loss of sense of security for the present and the future…” Both the president and Congress felt it was necessary to carry out what had to be done to help the depression. As part of the government’s plan to help the problems Americans faced, legislations were passed. The
“All of this has been caused in large by a complete lack of planning and a complete failure to understand the danger and signals that have been flying ever since the close of the World War” The Great Depression had shown its signs early on but people ignored them as they kept producing more than would be sold in hopes of finding buyers who would buy the goods for a higher price and acquire profits. The government interfered and would create a “partnership” not take over and control