Hoover's Contribution To The Great Depression

The so-called “good life” in the United States seemed infinite before the Great Depression occurred. However, companies overproduced goods and farms failed, giving rise to the economic disaster in the United States. At the time, President Hoover wanted businesses to volunteer to help the American people while the government stepped back. Meanwhile, American citizens were losing their jobs and their life savings. The Great Depression’s leading causes were the problems of overproduction of goods, the hope of stock market prices rising, and Hoover’s poor economic policies including favoring the wealthy. Many economists have decided that the overproduction of goods was a crucial contributor to the Great Depression. At the start of the 1920s,
The incentives put forth did not contribute to the solving of the nation's problems. Unemployment rose, businesses closed, banks failed, and many families lost their homes during this time. The richer seemed to be getting richer and the poor were stuck in a cycle of poverty. Corporations were taking over smaller businesses and controlled the industry. A small percentage of the population was extremely wealthy during this time and had incomes of about $100,000. On the other hand, 71% of families in American earned less than $2,500 a year and had no savings. Millions of Americans were homeless and were forced to live in shanty towns with houses made of scrap material and garbage. These towns were often called “Hoovervilles” so named to mock the president. President Hoover felt that people should be masters of their own fate and that businesses should help the people through volunteer programs. Showing a laissez faire (or let it be) approach, Hoover also felt the business community should regulate itself instead of asking for and expecting government aid. Hoover soon became became unpopular amongst the American population because he did not use his executive power in the way the people thought he should have. He refused to give the people money directly, and, instead, wanted them to invest in businesses and projects. The American people felt that Hoover did not care enough for the poor and most did not agree with his philosophy of limited government action. Churches set up places where families could get a free meal. Although churches and ethnic communities organized their own relief efforts, the number of people in poverty grew and there were so many people looking for a handout that all this became too much for the