In terms of the financial reform, since the recession, Hoover had been trying to repair the economy. He founded government agencies to encourage labor harmony and support local public works aid which promoted cooperation of government and business, stabilize prices, and strive to balance the budget. His work focused on indirect relief from individual countries and the private sector, which was reflected in the letter emphasizing "more effective supporting for each national committee" and volunteer service -" appealing for funding" from outside the government. The commitment to maintain the gold standard system prevented the Federal Reserve expanded its money supply operations in 1930 and 1931, and it promoted Hoover's destructive balancing budgetary action to avoid the gold standard system overwhelming the dollar. As the Great Depression became worse, the call raised for increasing in federal intervention and spending. But Hoover refused to allow the federal government to force fixed prices, control the value of the business or manipulate the currency, in contrast, he started to control the dollar price. For official dollar prices, he expanded the credit base through free market operations in federal reserve system to ensure the domestic value of the dollar. He also tended to provide indirect aid to banks or local public works projects, refused to use federal funds to give aid to citizens directly, which will reduce public morale. Instead, he focused on volunteering to raise money. Even though Hoover was a philanthropist before becoming president, his opponents regarded him as not responsible for the citizens. During the administration of Hoover, the US economic policies had moved to activism and interventionism. In his re-election campaign, Hoover tried to persuade the Americans to claim that the measures they requested seemed to be helpful in the short term, but it would be devastating in the long run. Eventually, he was defeated by Franklin Roosevelt in 1932.
For financial protection newly formed Securities and Exchange Commission and the Federal Deposit Insurance Corporation for financial protection. Second effect is when Franklin D. Roosevelt’s introduced programs between 1933 and 1930, designed to help America pull out of the Great Depression by addressing high rates of unemployment and poverty. FDR and Congress introduced regulationzs and subside: the cornerstones of the New Deal wetre the Public Works Administration and the National Recovery Administration.
The Effects of the Great Depression on Children
Admittedly, the New Deal was highly successful in achievingthe limited goal of providing immediate relief to millions of hungry, homeless,and jobless Americans. The Federal Emergency Relief Act, forexample, earmarked about half a billion dollars to distribute to stateson the verge of bankruptcy and directly to Americans who neededgovernment handouts the most. The Public Works Administration, WorksProgress Administration, Civilian Conservation Corps, and CivilWorks Administration also provided invaluable employment to millionsof young men during the depression. Most of Roosevelt’s new alphabetagencies, however, were just quick fixes to remedy the most visibleeffects of the Great Depression without doing anything to solvethe problems that had caused the economic collapse in the firstplace.