An economic crisis entails a sudden and severe upset in any part of the economy. The financial crisis manifests in terms of inflation, unemployment and stock market crash registering severe effects but not a recession. The American economy has not been an exception in the experience of an economic crisis.
The American crisis hit at a time when the nation seemed unprepared. However, the then president Hebert Hoover devised a system to ensure that the economy of America rises above the danger of forever collapsing. Though surprised, he employed a philosophy of American individualism that entailed resistance to government intervention considering a failure towards America's greatness.
The economic crisis in America called for desperate measures to counter the emergency. President Hoover employed two programs to ensure that the future of the American people remained in the right place (Brinkley, 1993). He applied the schedule of federal control over agriculture by expanding the reach of the central farm board. The idea of running this program entailed the provision of state loans to farms cooperatives and the creation of stable farm prices. This program registered a terrible failure and farms suffered faced dire consequences due to surplus in production and a price drop.
The second program entails the revival of government conferences by summoning major business leaders to the Whitehouse. The plan involved the restriction of lowering of wages by the employers during the rise of unemployment. In this proposal, he argued that if firms cut wages, workers would lack the purchasing power they needed for procuring of commodities manufactured.
President Hebert Hover goes down American history as one the most unsuccessful president in the history of the American presidency. This failure reflects in his incapability to lead people off panic during the American crisis. Hebert Hoover registered defeat in handling the great depression because he underestimated the severity of the great economic depression employing the conservative approach (Brinkley et al.1993). Herbert Hoover had asked the citizens to find their means to recovery and sought voluntary business measures to stimulate the economy.
Hebert Hoover grew up and rose to success after turning an orphan at a very tender age. His upbringing cannot contribute to the failure of handling the American depression since he had a history of success since his young age. The inability to control the economic crisis can entail attribution to his style of leadership (Smith, 2015). His personality involved the application of conservancy system even in such a disaster that demanded a different approach.
The failure that Hoover registered during the American economic crises made him go down in history as one of the most unpopular presidents in America. The financial situation attracted demonstration across the states of America for feeling that the president had neglected them (Smith, set al. 2015). Handling an economic crisis requires a well-planned formula which may need an analysis of the current and future analysis. Financial experts predict the occurrence of another economic crisis in America though it's not clear. A person or state can prevent plugging into an economic crisis by finding a financial advisor, rebalancing the state allocation annually, creating a customized financial plan and savings worth more than six months' worth of living expenses. This steps will only try to avert the possibility of an economic crisis. However, the financial crisis may still occur, and it's upon us to learn how to handle the emergency when needed.
Brinkley, A. (1993). The Unfinished Nation: A Concise History of the American People, Volume II (Vol. 12, p. 7229). McGraw-Hill. Retrieved from https://lamission.edu/itv/letters/7229.pdf
Mitchener, K. J., & Wandschneider, K. (2015). Capital Controls and Recovery from the Financial Crisis of the 1930s. Journal of International Economics, 95(2), 188-201. Retrieved from https://www.nber.org/papers/w20220.pdf
Smith, A. L. (2015). Economic Revolution From Within: Herbert Hoover, Franklin Delano Roosevelt and the Emergence of the National Industrial Recovery Act Of 1933.Retrieved from https://digitalcommons.wayne.edu/cgi/viewcontent.cgi?article=2380&context=oa_dissertations
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