After the economic boom of the 1920s, the U.S entered a great period of prolonged economic depression. The whole country was widely affected by the depression in many ways. Jobs were gone, money was gone, people were homeless, stranded, and in crisis was the country. As it began, President Hoover didn’t try as much as can be to improve the economy. But that all changed as the newly elected President, Franklin Delano Roosevelt took the country in his hands. FDR started initiatives in order to start the economy all over and give it a boost as quick as possible.
There were many economic problems that existed during the Great Depression such as; large numbers of people lived in poverty, desperately in need of or more food, clothing, and shelter. Not only that but also, as shown in the graph of document 3, the economic impact of the great depression on the rise of unemployment was great! In 1929, the start of the great depression, unemployment was under 2 million people; in 1933 the unemployment rate rose dramatically to over 12 million. Many people stayed without jobs until the start of World War II but worst they lost all of their money due to the stock market crash leading to the out-of-businesses of banks.
As Hoover’s presidential campaign was coming to an end and the beginning of a prolonged depression on the country, Hoover didn’t do much since his run was almost over. He didn’t take hands on approach to the crisis; he pretty much thought the economy would fix itself. His thought of solution was pretty much compared to ‘laissez faire” in which the government didn’t intervene because businessmen knew best. He also said the government shouldn’t help people in need, the private charities should. This started what came to known “Hooverville.” A Hooverville was the popular name for shanty towns built by homeless people during the Great Depression. They were named after Herbert Hoover, because he let the nation slide into depression. All in all, Hoover didn’t do...