How did the United States go from the prosperous "Roaring 20s" to the Great Depression? Summarize the causes of the Great Depres
sion and determine why President Herbert Hoover's actions did not restore the ailing economy. Then, evaluate President Franklin Delano Roosevelt's policies dealing with the Great Depression.
Causes include: people buying on credit, Black Tuesday, construction halted, international trade decreased; Hoover approved of limited government involvement in the economy; Roosevelt started New Deal, which strengthened banking and provided jobs for millions of Americans; the depression continued, however.
The main reason why the United States went from the prosperous "Roaring 20s" to the Great Depression was because people speculated too heavily in the stock market, causing values to be greatly inflated which led to a "bubble" that burst in 1929--leading to the Depression. Hoover was far too "hands off" and refused to inject the government into the economy, which is exactly what FDR did.
The flexible response was created and implemented during former President John F. Kennedy's administration at the year 1961 as a measure to counteract the New Look policy of former President Dwight Eisenhower in his policy of conducting a massive military action in case of war.
