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The Great Depression was a severe worldwide economic depression during the late 1920s and early 1930s. The economic downturn of the United States started in 1927 when Americans had spent more money then actual income. The overall spending of money had declined throughout the economy and a lot of workers had been laid off. Other factors that led the United States into the Great Depression include the rapid rise of stocks in the stock market and unequal differences in personal income. It can be considered that President Hoover led the United States into the Great Depression and President Roosevelt led the nation out of the Great Depression. Both Presidents had different views on how to fix the economy. President Hoover was elected the president in 1928 and he had a plan to fix the economy. Hoover believed in a laissez-faire government, which is a limited government control on the economy. Hoover believed that the private sector or the individual businesses of the nation would help save the economy. He believed the private sectors should have little or no government help to save their businesses. This is why Hoover did little to nothing to help businesses grow. Hoovers response to the economic depression was the Revenue Act of 1932. This act increased taxes throughout the nation to balance the federal budget. This act was not successful because it actually decreased personal consumption and investments. Hoover also refused to consider direct federal relief for unemployed Americans. Another response to the great depression was the program called the Reconstruction Finance Corporation (RFC). This program provided federal loans to railroads, banks, and other businesses. This program was not a great success because the government cautiously watched how much money was going into the program. As the great depression continued, many Americans began to resent Hoover

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