Hoover's Economic Changes

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The failure of the American economy during following the Great Crash extended the effects of the Great Depression by creating panic throughout the stock market, and would have effects on the economy which would last for the rest of the decade. America's entrance into the Great Depression also exasperated the already damaged economic situation in Europe. Herbert Hoover's attempts to get America out of the Depression had an overall negative effect on the economy. Hoover’s policies of focusing on subsidizing companies increased unemployment levels and worsened the distribution of wealth during the Great Depression. America lost faith in Republican strategies, and as a result, Franklin D. Roosevelt was elected in the election of 1932. Roosevelt …show more content…
He employed an opposite strategy to Hoover's plan, which was to focus on supply through a form of trickle down economics. Roosevelt's Democratic programs set the basis of other social programs . He was also successful in reforming American capitalism to prevent the continued subsidies given to businesses instead of the working class. The New Plan did not bring America out of the Great Depression altogether. The top 10% between 1919 through 1939 owned nearly 45% of the share of wealth, and this gap between the rich and the poor was an imperative source of hardship for most Americans during this time. Moreover, the New Deal Plan set out by FDR was not the essential factor which ended the Great Depression. Instead, the distribution of wealth was re stabilized due to the drastically increased government spending. Beginning in 1942, the first full year of war mobilization for the United States, the unemployment rapidly drops to an impressive 0%. But still, Roosevelt's method to reform capitalism was successful in restoring America's faith in the economy. This confidence in American capitalism was essential to bring the people out of the panic which was a result of the Great Crash. Although the New Deal did not directly complete its goal in ending the Great Depression, Franklin Roosevelt successfully restored confidence through a transition to …show more content…
During the 1920s, many farmers enjoyed subsides in order to supply Americans with produce during the war. After the war, the government stopped subsidizing, and prices of agriculture dropped significantly due to overproduction, as a result, many farmers began to destroy produce to keep prices high by lowering the supply. Once the economy crashed, people stopped being able to pay high prices, and this caused a crisis in the Agricultural sector. Farmers could either sell at too low of a price or raise prices. The government had to reintroduce subsidies for farming in order to maintain food security for the rest of the population during the economic disaster, however, farmers working on private land were still not able to utilize government regulations. The government supplied money to farmers in order to not grow crops, instead of destroying their

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