Question

What problems did the nation face during the Great Depression and what did President Hoover do to address these problems?

Answer 1

When Herbert Hoover became President the economy was climbing, but 8 months after he became president, in October 1929 the stock market dropped. Hoover believed that a limited role for government was the best policy because excessive federal intervention was a threat to capitalism. As a consequence, he developed methods for increasing employment in the private and public sectors but he disregarded relief programs for the unemployed. He did not believe in direct control of funding for relief. He spent too much money on efforts to create jobs in a bad economy and excessive spending worsened the crisis. He also sought to prevent panic from spreading and he convinced business leaders whom he invited to the White House to maintain wages constant to keep consumer spending. He thought that if people could spend, the economy would recover, but all these measures resulted in a great depression.

Answer 2

The correct answer is, President Hebert Hoover faced many problems during the Great Depression such as the largest economic downturn ever lived in the United States, major unemployment, difficulties in the workplace, reduction in production, and the fall of investments.

What President Hebert Hoover did was to listen to many experts on the subject and worked hard for long hours to make the best decisions to resolve the crisis. For instance, he ordered to use federal resources to alleviate the crisis. He also called the business owners to ask them not to cut jobs or reduce production.

He established the President’s Emergency Committee for Employment in order to maintain or create jobs and support businesses. He also passed the Glass Steagall Act to offer loans to Banks so they were able to provide credit to the people.