Economic Problems In America During The Great Depression

During the time of the Great Depression America was facing a plethora of problems. The economy was at the point of collapse and a huge portion of the money was among a very small number of very wealthy individuals. People had resorted to living in villages called Hoovervilles where the houses were made up of whatever could be salvaged. Before the Great Depression began people took out loans carelessly without money to back it up; people were paid too little and goods cost too much. More goods were produced than sold and all this lead to an economic downfall. America faced a deluge of economic issues. Both Herbert Hoover and Franklin Delano Roosevelt had different methods of trying to solve the problem, however, their efforts had different results …show more content…
Roosevelt and Herbert Hoover had very different ideas of solving, and despite them both potentially working in the long run, there was a difference in effectiveness. America had faced price change, increase in taxes, disability to pay, the government had trouble with money, and other issues which put a large stress onto the country. Roosevelt alongside his brain trust believed that pump-priming was how America should be helped; by increasing the amount the government worked, businesses would also increase in activity. However, Herbert Hoover had very different views—he believed that if the government supported and protected the wealth of large companies, then the economy would fix itself. Although it was Roosevelt 's solution that took America out of the Great Depression and made him known as one of the greatest presidents. The Great Depression, as terrible a situation it was for America, may have changed it for the better. New programs were made which secured America and would aid in making sure there was not another economic downfall. In some cases it was a necessary experience so that the people learned how terrible another downfall may be and that keeping the economy running is extremely