Great Depression.

Topics: Great Depression, President of the United States, Federal Deposit Insurance Corporation Pages: 3 (848 words) Published: February 5, 2013
Was Herbert Hoover The One To Blame?
An argumentative essay on who caused the Great Depression

The Great Depression was one of America’s greatest downfalls. What began in the 1930s led to a national disaster from economic hardships and rough lifestyles. The U.S. government including Herbert Hoover was responsible for this downfall because Hoover kept to the idea that allowing the economy to correct itself was the best course of action. Herbert Hoover was a viewed as a hero but his arrogance was seen more. Herbert Hoover once told his old friend Julius Barnes: "No president must ever admit he has been wrong"( During the last two years of his presidency as it became more and more apparent that the Depression was worsening and his program of confidence, voluntarism, and business support wasn't working. He refused to recognize that his philosophy and programs weren't working. Rather than try something different, he stuck with his program, became more and more defensive, tried to convince himself and Americans that things were getting better, and lost the support of the nation. Hoover's refusal to authorize large scale relief programs that might have decreased suffering and hunger across the nation would have helped. Hoover’s unwillingness to use significant federal spending to stimulate the economy, and his general failure to recognize the seriousness of the Great Depression added to the downfall of the economy. Hoover’s plan of action for the Great Depression known as the “Trickle Down” was to distribute loans out to businesses to create more money. He had also encouraged peopled to purchase items, but since no one had money the loans given out to businesses had gone to waste. When the market fell, brokers called in these loans, which could not be paid back. Banks began to fail as debtors defaulted on debt and depositors attempted to withdraw their deposits in massive amounts, triggering multiple bank runs. Government guarantees...
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