Herbert Hoover's Response To The New Deal

Better Essays
In 1928, Herbert Hoover became the third republican president after World War 1. At the beginning of his administration, the economy was looking good. The unemployment rate was only 3%, which means a fully employment in economic. However no one could imagine that in the following two decades America will experience the worst and longest lasting economic recessions that almost swallowed this nation. During that time, the introduction of credit increased consumer spending, which allowed people not to consider future consequences. People started spending more money than they could afford, which leaded to the rising of debt. On the other hand, more and more Americans, especially middle class and upper class, invested in the stock market for quick…show more content…
Because Herbert did not have an immediate and effective plan to deal with the great depression, most Americans turned to Franklin Delanor Roosevelt. Once FDR entered the white house, he came up with the New Deal. As we all know, the New Deal was a policy that in response to the Great Depression. Till today, many scholars believed that the New Deal succeeded in alleviating the economic crisis and helping a lot of people. As the article “The Great Depression, The New Deal, And The Current Crisis” mentioned, “real output and employment grew very strongly between 1933 and 1937, with unemployment fall-ing more than 10 percentage points” (Field 99); “GDP had completely recovered from its collapse during Hoover administration and by 1937 was, in real terms, more than 5 percent above its 1929 peak”(Field 100); “the rise in real wages for those employed across the depression years was certainly consistent with Roosevelt’s efforts to facilitate the growth of unions”(Field 103). Field thought these factors made the New Deal a success. However, if we take a deep look into the fact, the recession, remain high unemployment rate, employment situation and highly cost, unsuccessful program made the New Deal becoming a
Get Access