Hoover Approach To Capitalism

It’s the early 1920’s and people are going crazy. The wealth in the United States is through the roof and everyone is buying everything. A new thing called credit was just invented so people could buy thing without actually having the money to buy them. The stock market was booming and almost everyone was investing in stocks. People finally had leisure time and everything was looking up until… The great depression. People didn’t actually know of it as that back when they were living it but it is what people now call it. The stock market crashed brutally leaving millions of people with no more money. The banks were getting overwhelmed with people who wanted to pull their money out. The agricultural sector was failing miserably leaving …show more content…
It was a hard time but people were desperate so who did they decide to bring in to fix the problem, Herbert Hoover. Hoover’s approach to fixing the problem that was at hand was a very hands off approach. The thought he had in his head was that this was good and when this all plays out america will be on the rise and on its way to great prosperity. His plan failed miserably and he ended up not getting re elected. America went with a new man, a man who had a very different approach than hoover, a man by the name of Franklin Delano Roosevelt. As soon as Roosevelt came into office America pulled a u turn and finally started going in the right direction. He was elected 4 times and did many great things in his term as president. America changed drastically and some of the policies that were put in place back the are still in full effect today. The major changes that the United States underwent under Roosevelt were a change in the role of the federal government which started to pay a major role in the lives of American citizens, a change in international affairs which meant the us was starting to branch out and stray from its traditional isolationist ideas, and the life of an average american …show more content…
Within 100 days of Roosevelt’s presidency he already starts making major changes. The first one coming on his fourth day in office in which he declared a 4 day bank holiday so that the banks could get their accounts in order. He also creates an organization known as the F.D.I.C. so that people can take out up to $5,000 in bank deposits. He also creates the SEC to regulate the stock market and make sure it is a safe place for investors. A large part of his new deals involved in the aid of farmers. The government would pay the farmers money to kill off excess livestock and burn extra crops. The government funded agencies that built roads, dams, power plants, and government buildings. The NRA established minimum wage for workers and also minimum prices for goods businesses sold. The government helped employ over 8 million American citizens with the help of the WPA. Also the social security act helped the disabled, injured people, single mothers who were struck by poverty, and the elderly. The new deal also creates an abundance of new opportunities for African American citizens. This is clearly a very drastic change and most of it was for the benefit of the people. This new deal aided almost all of the people that needed help. The federal government taking control was clearly a good thing and most people started to realize this. This was also a time of looking