Losers and Winners of 1920's Term Paper

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Great Depression and the response of the federal government to the economic crisis of 1930's

The response of the American government and people to the economic crisis of the 1930's was mixed, at first. There was an initial desire on the part of the Hoover administration to maintain the American government's hands-off role in regards to the economy combined with a faith in classical economic monetarist policy that had created American prosperity in the nation's past. However, there was also a corresponding desire, later embodied in the Democratic administration of FDR, for greater federal involvement in the economy.

It was at first uncertain as to what policies could ameliorate the spiraling out of control of the American economic future.

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The 1920s had been an era of unmatched prosperity for the American nation. High levels of employment in combination with peacetime left Americans unprepared to weather any economic calamity, much less one on the level marked by a virtual international spiraling out of control of all economic indicators, such as the Great Depression. This unexpected occurrence was contrast to the less destructive economic problems of the Progressive Era, in the world chronicled by Lewis Gould in his text America in the Progressive Era. Then, the American economy was less internationally and nationally connected. Also, during the Progressive Era, demand and the generation of goods were more closely linked upon the nation's existing money supply.

During the 1920's, nearly….....

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