We all are familiar with the word depression, but do you know about the Great Depression?
It was the worst economic condition in 1929, and it didn’t slow down until the very end of the 1930s.
The starting signal came when the stock market crashed in Oct 1929. 25 % unemployment increases at the end of 1933. Around 5000 banks had gone under.
All these situations had a great impact on Americans as they get panicked, and the situation goes more worsen. “Black Tuesday” and “Black Thursday” are the words in which we remember those days.
Hoover was the President of that time. Now the question arises what did president Hoover do to offer a solution to the human problems of the depression in 1929?
Contribution of Hoover:
When this situation started, President Hoover didn’t take any action because of his perspective of the voluntarism principle.
According to his belief government should not interfere in economic conditions. Also doesn’t involve the direct relief of people because it declines character towards work. He doesn’t want to see people depending on the government.
Later in 1931, he realized the situation and got directly involving government in handling the economy’s situation. He provided aids to banks, companies, and people by providing them money to stabilize the situation.
But these actions, according to the situation, were falling behind as well as too late. These little actions failed to achieve President Hoover’s expected goals, and the situation remains the same. “Hoover Blankets” and “Hoover Flags” were the most used terms that show lack of money, prosperity, and government confidence.
After seeing that President Hoover could not help the situation get better, people tried to cast him away.
At last, elections were held in 1932, and a new President was selected to control the situation.