Answer:
In the long run, the Great Depression affects the lives of most Americans greatly. Businesses thought that products and services would be available at low prices, unregulated by the government, prior to the Great Depression.
When the economy collapsed in 1920, people finally realized that steps needed to be taken to remedy the issues. In keeping with his predecessor, President Hoover strongly believed that the government should refrain from trying to help the economy, and allow the depression to run its course. He wanted to protect American businesses from foreign competition by pushing for higher tariffs. Unfortunately, this policy backfired. These high tariffs encouraged other countries to raise their tariff rates, which prevented U.S. business and agricultural entrepreneurs from exporting their goods to additional countries.
Prior to that, Congress had been reluctant to fund the Reconstruction Finance Corporation, which had originally been established in 1932. Lending money to banks, railroads, and major corporations was one way this agency tried to forestall an even worse economic downturn. As a whole, most Americans disapproved of Hoover's style, and in 1932 they voted for Democratic President Franklin D. Roosevelt. FDR restored a sense of hope and optimism to the nation. Roosevelt and his advisors believed that to stop the Great Depression, the federal government needed to take forceful action. He set the tone for his administration with his inaugural speech. He stated that all that Americans should be afraid of was their own fear. To calm people's concerns, he went about convincing Congress to pass several ideas during his first 100 days in office. Roosevelt wanted to offer the American people a "New Deal".
Roosevelt also ordered the closure of all US banks, calling it a “bank holiday.” Only banks that passed an inspection by the bank regulators were allowed to reopen.
The Federal Deposit Insurance Corporation was created to supervise bank operations and to insure bank deposits in order to avoid another widespread bank failure. The U.S. government wanted to ensure that depositors' money was secure and could be accessed when necessary.
Explanation:
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