Essay on Herbert Hoover 's The Great Depression

1070 Words Feb 2nd, 2016 5 Pages
The Great Depression was a period of time in America when many people lost their jobs and the unemployment rate in America peaked at 25% for whites and 50% for blacks and latinos. People were struggling to even receive one meal each day and the overall situation of these people was very grim. One long term cause of the Great Depression was the fact that stock market brokers would buy on margin, where the broker pays 10% and the bank pays the rest, and speculation, a risky move where brokers buy a stock because they have potential to raise in price so they sell it within a short span of time. Another long term cause of the Great Depression was the immense panic that caused a high demand for withdrawals in banks, which then caused the banks to be unable to give out loans and ultimately caused many banks to shut down. Herbert Hoover was elected in 1928. He believed in rugged individualism, which meant no government handouts, voluntary cooperation, which meant that people help each other out, and that the economy has natural cycles, meaning the Great Depression will eventually get better. This prolonged the Great Depression because those three beliefs made Hoover refrain from helping to stop the Great Depression. Franklin D Roosevelt was elected in 1932 and the New Deal was a series of government programs and laws that attempted to lift America out of the Great Depression. FDR believed in Reform, Relief, and Recovery and the “try anything” approach. I believe that The New Deal…

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