The Economic Effects Of The Great Depression Essay

1642 Words Mar 23rd, 2016 7 Pages
In 1929, the economy failed, unemployment rates soared, and almost every urban and rural family alike faced hardships. The Great Depression was in full effect and poverty gripped America. This economic depression lasted for about 12 years and grew to a horrific global problem. The depression was caused by the stock market crash of 1929, uneven prosperity, high supply and low demand, tight and loose monetary policies as well as the reduction of foreign trade. As the financial calamity continued to worsen, Herbert Hoover, 31st president; in office 1928-32, worked to meet the difficulties facing the American people and their economy. Hoover relied on volunteerism as a way for Americans to voluntarily unite and fight the depression. He also adopted activist policies and advocated for the Reconstruction Finance Corporation, to enact a trickle-down economic cycle (272-274). Hoover’s failed attempt to solve problems of unemployment, poverty, bank/business failures caused the American people to elect a new leader, who would put an end to the depression through government based interventions. In 1933, the need for change was prominent throughout the nation, and a man was inaugurated to make that change. Franklin D. Roosevelt (FDR) faced many problems as he took office. About a quarter of the nation was unemployed, banks and businesses had closed and were in an economic rut, national and individual debt soared. FDR addressed these problems through a plan to relieve the unemployed,…

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