The Democrat Franklin Delano Roosevelt defeated HerbertHoover, which was a Republican. The election represented a dramatic shift inthe political alignment of the country. He promised that he would act swiftlyto face the “dark realities of the moment” and assured Americans that he would “wagea war against the emergency” just as though “we were invaded by a foreign foe.
“Roosevelt addressed the problems of the depression by telling the Americanpeople that, “I pledge you, I pledge myself, to a new deal for the Americanpeople.” The New Deal Roosevelt promised began to take shape immediately afterhis inauguration in March 9, 1933. Herbert Hoover was the president at the time of the GreatDepression. According to Document 2, President Hoover thought that the Federalgovernment should only supplement state and local committees and not take fullresponsibilities when Federal action is essential. As the Depression worsen,Hoover failed to recognize how serious the situation was and the power theFederal government had to address it. Hoover then tried to help the economy withsome programs.
The first program was created by Herbert Hoover himself and it wasthe Reconstruction Finance Corporation (RFC), and it was founded in January 22,1932. The RFC provided financial support to state and local governments andmade loans to banks, mortgage associations, railroads, and other businesses. Next,the second program was created by Herbert Hoover also, which was the EmergencyRelief and Construction Act (ERCA), created on January 22, 1932. The ERCAprovided funds to the RFC in order to make loans for relief to the states and additionalmoney for local, state, and federal public works projects. Lastly, the third programwas the Glass-Steagall Act (GSA) in June 16, 1933. It separated investment andcommercial banking activities, and was created by two members of Congress.There was then an American presidential election held on November 8, 1932.
On October 29, 1929, the most devastating stock marketcrash in the history of the United States happened. This was the Stock MarketCrash of 1929, or also known as Black Tuesday. A stock market crash is a suddendecline in stock prices across a serious and important cross-section of a stockmarket. Unemployment, according to Document 1, increased drastically for thenext years after the Stock Market Crash, along with stock prices not having togo anywhere but go up, thus there was some recovery during weeks. However,prices continued to drop as the United States fell more into the Great Depression.
The Great Depression was a severe economic downturn in the United Stated andworldwide. Not only were the American citizens struggling, but farmers were alsotoo. When the prices fell, they tried to produce even more to pay their debts,taxes, and living expenses. They tried, but many farmers went bankrupt and losttheir farms. According to Document 1, wheat prices of theirs also decreased. “Ahh, yes! The Roaring Twenties, a time of prosperitywith dramatic social and political change.
Nothing could ever go wrong.” Well,this was at least Americans thought, but little did they know what was going tohappen. Starting in 1919, the worst economic downturn in the history of theindustrialized world began.
This timehappened right after a specific event not long after it happened.