Great depression

Topics: Great Depression, Franklin D. Roosevelt, Social Security Pages: 6 (1595 words) Published: September 15, 2014
University of Phoenix Material

The Great Depression

Part 1

Complete the chart by filling in each president’s views on the Great Depression.

Herbert Hoover
Franklin Delano Roosevelt

Causes of the Great Depression

*Weak agricultural and industrial growth in the US was due to foreign competition with domestic businesses, and a solution that helped both domestic and foreign economies grow mutually was not necessary. *The lack of individual and voluntary response to the depression, especially response from industry leaders, was the issue, and policies regarding “CEO philanthropy” should be encouraged in lieu of federal intervention. *Lack of employment was due to a lack of public projects and improvements which needed to be slowly and cautiously funded and regulated.

Weak agriculture and industrial growth was due to a lack of regulation and required federal control and government loans to stop the spiraling depression in these sectors. *Lack of unemployment was due to the lack of state and city government’s ability to sufficiently employ the vast unemployed young men in the US, and federal intervention was absolutely necessary. *Lack of unregulated, unfair business practices in the industrial markets resulted in disenfranchised employees who worked too much for too little. Cutthroat competition between these types of companies resulted in low profit margins, low wages, and low morale.

General description of response to Depression

Beliefs that guided him in his attempt to solve it

He believed that raising prices on foreign products would protect American products from competition.

He believed that citizens, businesses and the government should work together voluntarily instead of being rescued through government mandated programs.

Roosevelt believed that, without a national plan for economic reform, the country would succumb to demagogues like Long and Coughlin.

What he told Americans they had to do to overcome the Depression

Hoover believed that if industry leaders and bigger companies did more volunteer work they could help the economy.

He thus formulated policies based on his idea of voluntary cooperation, which held that business leaders would make sacrifices for the benefit of the nation The only thing we have to fear is fear itself,” Roosevelt tried to reassure the country about its future.

What agencies he relied on to provide relief

Red Cross, President’s Organization on Unemployment Relief (POUR) - which persuaded local organizations across the country to raise money and to form voluntary groups that would sponsor soup kitchens and clothing exchanges. , Hoover Dam- one of the largest government construction projects ever undertaken, Reconstruction Finance Corporation (RFC). The RFC was a federally funded agency that loaned money to businesses with the hope that they would hire more workers. Brain Trust (a group of leading intellectuals charged with formulating policy), Roosevelt proposed a series of dramatic measures meant to reorganize the country’s financial system and raise the living standards of all Americans, especially working Americans. Federal Emergency Relief Administration (FERA), with funding of $500 million. FERA’s chief administrator, Harry Hopkins, preferred public works projects to direct payments to people, believing that the former were more considerate of the recipients’ pride.

Civilization Conservation Corps (CCC), enlisted unemployed young men between the ages of eighteen and twenty five in building and repairing highways, forest service sites, flood control projects, etc.

Significant acts passed during his presidency to help end the Depression

Herbert Hoover Believe the country was rich and full of resources. But after he took his seat in office the stock market crashed and the great depression began. But Hoover was out to do everything he could to stop the depression and turn the country...


References: Schultz, K. M. (2012). Hist 2 (2nd ed.). Retrieved from The University of Phoenix eBook Collection database
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Great Depression Essay

    ... Give your opinion on whether or not the safeguards put in place to prevent another Great Depression, starting with the Roosevelt administration in the 1930s, can be effective today.  The Great Depression caused many Americans to lose their jobs, their homes, their dreams, and aspirations. Roosevelt created the “New Deal” in order to rebuild the economy and prevent this from happening again. The “New Deal” consisted of three goals: relief, recovery, and reform. One safeguard put in place that can be successful today is the creation of the Federal Relief Administration (FERA) which formed the Civilian Conservation Corps (CCC). These programs assisted in helping employ the unemployed. Increasing the employment rate is a great way to prevent another recession. Another safeguard that can be used today is government officials sitting down with business owners in order to set proper working standards and wage levels. It is important at least every five years to evaluate the minimum working wage for employees according to the cost of living in America. Another safeguard that is used today is regulating the stock market. The security of knowing that individuals who take advantage of inside information will be prosecuted reassures Americans that it is safe to deposit money in banks.  Compare the speculation of stock market investors in the Roaring Twenties to “house flippers” of the 2000s in terms of...

    Read More
    1147 Words 5 Pages
  • Great Depression Changes essay

    ...Great Depression Changes Essay Approaching the end of the 1920's, the United States' economy was thriving with what was considered the largest economy in the world. Furthermore, due to America's then- current economic status no one was prepared for what the following years would entail. It was as if suddenly, everything America had worked so hard to achieve had just fallen apart. The 1929 stock market crash had touched off the downward spiral that led the United States into what would become the longest, most widespread depression of the 20th century. Contrary to popular belief, the stock market crash of 1929 was not single handedly responsible for the Great Depression. Although it did in fact play a large role, there were many underlying causes that factored into what became The Great Depression. At the time President Herbert Hoover was sworn into office, the United States economy was unknowingly on the precipice of an economic downturn. And in less than seven months, the U.S had descended into its longest, deepest economic crisis of its history. With their president unable to provide ample support in this time of great desperation, his popularity quickly decreased, as well as job loss. Deeper into Hoover's presidency, the economy continued to shrink. Finally, in 1932, Hoover signed legislation that began the Reconstruction Finance Corporation,...

    Read More
    798 Words 3 Pages
  • Great Depression and New Deal Essay

    ...Great Depression and the New Deal After learning about United States Industrialization from Neil Painter book Standing at Armageddon, and reading about the unprecedented economic prosperity in Michael Parrish Anxious Decades, Eric Rauchway in his book The Great Depression and the New Deal discusses the major causes of the Great Depression in the United States and ways the newly elected president Franklin D. Roosevelt intended to fix the economic problem by implementing New Deal Programs. The Great Depression was one of the deepest and longest lasting economic downturn in the history of the United States. It was an immense tragedy that placed millions of Americans out of work. After nearly a decade of prosperity, the United States was thrown into despair on October 29, 1929 when the stock market crashed. During the 1920’s there was an unprecedented amount of industrial growth and many of Americans were able to live comfortably. This era saw new discoveries and inventions in nearly every field of endeavor that became the foundation of a striving business. With the industrial success many people began to invest in the stock market. The Stock Market climbed to exceeding heights allowing the general public to join in for easy profits. When stock prices slumped many investors had to sell their shares forcing sell prices to drop further, leading to the Stock...

    Read More
    1666 Words 7 Pages
  • Great Depression and New Deal Study Guide Essay

    ...Great Depression and New Deal Study Guide: Events Causes/Effects of the Great Depression: widespread banking failures. The banks invested people’s money in the stock market and created major losses. Goals of the New Deal- three goals: relief for the needy, economic recovery, and financial reform Causes of the Dust Bowl The Bonus Army The Crash of 1929 People Herbert Hoover- was the president at the start of the great depression. He was the republican nominee but he realized later that he had no more he could do. Franklin D. Roosevelt- was the democratic nominee for office against President Hoover; he was known popularly as FDR, a two-term governor of New York and a distant cousin of former President Theodore Roosevelt. He created the New Deal. Huey Long- Terms Social Security Act- This act established a system that provided old age pension for workers, survivor’s benefits for victims of industrial accidents, unemployment insurance, and air for defendant mothers and children, the blind and physically disabled. | Fair Labor Standards Act- This banned child labor and set a minimum wage. This law was a long awaited triumph for the progressive-era social reformers. | National Labor Relations Act (Wagner act) - Reestablished the NIRA provision of collective bargaining. The federal government again protected the right of workers to join unions and engage in...

    Read More
    1119 Words 5 Pages
  • Compare and Contrast the Response to the Great Depression of Two Countries in the Region Essay

    ...Compare and contrast the response to the Great Depression of two countries in the region. The outbreak of the Great Depression in 1929 caused economic hardship for society in the Americas. World trade was quelled and the consequences devastated the United States of America and Canada. Both countries suffered a breakdown in world trade and resulted in a decrease of domestic revenue. The governments were tasked with restoring an economy that faced a 40% and 37% drop in their GDP in Canada and the U.S respectively. Additionally the increased rates of unemployment heightened the difficult situation. In 1933-34 during the hardest parts of the depression, Canada faced 28% unemployment and the US 25% forcing the government to act on various policies and inevitably spending on recovery. The long term laissez faire approach from the government had to be reconsidered and simply instilling austerity measures were not going to be effective in balancing the federal budget. The attitudes of ‘business of America is business’ was also evident in the initial Canadian response. Similar to Herbert Hoover of the U.S, Prime Minister Mackenzie King believed that the crisis was a passing phase and refused to provide federal aid. This was partly attributed to the fact that Canada was already in debt due to expansion of infrastructure and education during the 1920s and only introduced moderate relief efforts. Hoover’s...

    Read More
    1070 Words 5 Pages
  • The Great Depression: Effects and Solutions Essay

    ...Introduction The Great Depression was probably the most devastating economic catastrophe in US history. As the 1920s went on, many grave problems threatened the economy. Despite the fact that some people became rich, many others could barely scrape up an adequate living. Many important businesses struggled. Consumers were stuck with deep debts. As the 1930s approached, it was clear that the economy was faltering. The superficial wealth of the late 1920s concealed weaknesses that would signal the beginning of the Great Depression. Many events hinted at the depression. Industries such as railroads, textiles, and steel can barely make an income. New types of transportations such as trucks, buses, and private automobiles forced some railroad companies out of business. Mining and lumbering, which thrived during WWII, lost businesses due to the lack of demand. Because new forms of energy were introduced (natural gas, hydroelectricity, and oil), the coal industry saw their profits drop. One important indication is that new houses were built less and less. That's because when housing starts decline, so do jobs in other industries like furniture manufacturing. Another suggestion at a depression is in the farming area. The high supply of crops dropped its prices. Between 1919 and 1921, the annual income decreased from $10 million to $4 million. In fact, the prosperity in the 1920s never actually...

    Read More
    1026 Words 4 Pages
  • Impacts of the Great Depression Essay

    ...The Great Depression The Great Depression had a negative impact on America and the world. The Great Depression started when the stock market crashed in 1929, this was caused by over speculation in the stocks of land, the crash caused people to lose all the money they had invested in stocks and people started becoming poor, when this happened there was not enough demand for all the goods and services that the economy produced, “unsold goods built up and manufacturers cut production, laid off workers and bought less of the raw materials” (Caldwell). Demand for durable goods, such as automobiles, house appliances, and home furnishings, decreases when people don’t feel prosperous which adds to the lowering economy. Another factor which led to the Great Depression was the infamous Dust Bowl. The Dust Bowl itself lasted for a decade and was caused because farmers were over farming the land and not rotating their crops which left the top soil very dry and loose. Also “the severe drought which had hit the plains that year was a major factor to the occurrence of the Dust Bowl” (Ganzel). When the raging winds of the plains hit these arid places they sent all the dust from the farm lands flying into the sky which caused thousands of dollars in damage of property and belongings, it also took the lives of many people that were suffocated with the dirt...

    Read More
    1296 Words 6 Pages
  • Great Depression Essay

    ...Great Depression From Wikipedia, the free encyclopedia {draw:frame} Dorothea Lange's Migrant Mother depicts destitute pea pickers in California, centering on Florence Owens Thompson, age 32, a mother of seven children, in Nipomo, California, March 1936. The Great Depression was a severe worldwide economic depression) in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s.[1] It was the longest, most widespread, and deepest depression of the 20th century, and is used in the 21st century as an example of how far the world's economy can decline.[2] The depression originated in the United States, starting with the stock market crash of October 29, 1929 (known as Black Tuesday), but quickly spread to almost every country in the world.[1] Countries started to recover by the mid-1930s, but in many countries the negative effects of the Great Depression lasted until the start of World War II.[8] {draw:frame} USA annual real GDP from 1910–60, with the years of the Great Depression (1929–1939) highlighted. {draw:frame} Unemployment rate in the US 1910–1960, with the years of the Great Depression (1929–1939)...

    Read More
    7213 Words 29 Pages

Popular Essays

Become a StudyMode Member

Sign Up - It's Free