Hoover’s Plan of Action vs. The New Deal
At a time when the United States and Europe were still recovering from the effects of World War I, Americans, unfortunately, were not allowed much of a reprieve from their misery. On October 24, 1929, the official crash of the stock market on Wall Street occurred. Widespread speculation rather than true investment and buying on margin were major factors in the cause of this day, now called “Black Thursday.” Along with the Great Stock Market Crash, overproduction compared to a reduced demand and an uneven distribution of income brought about the zenith of the worst economic crisis ever to hit America, the Great Depression. Reform was necessary. The initial plans of Herbert Hoover and the deals of his successor President Franklin Delano Roosevelt held many similarities in their goals, but because of each man’s own personality, their courses of action were quite different. In the end, however, both plans failed to end the depression and instead left rather intriguing legacies on the American government.
When the Depression first began around 1929 under President Herbert Hoover’s administration, most were told the economic disaster would soon “blow over.” Shortly, the large unemployment rate and starving children depicted otherwise. This lack of concern marks one of the greatest contrasts of Hoover and his plan to that of Roosevelt’s “New Deal.” Hoover did not believe in government relief, and he wanted the citizens to take the initiative. He was afraid that once people realized the government was bailing them out, he would have created a society in which the government was a charity, and the citizens would become completely dependent. All the while, the depression steadily deepened. After the unsuccessfulness of committees that served to help citizens indirectly, Hoover had no choice but to provide direct government assistance. In January 1932, he created the Reconstruction Finance Corporation originally to make loans...
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