CaroCorniola

When the wall street crash took place, Hoover and the republicans were in power. They set up some measures to solve the problem. That same year, Roosevely won the presidential elections. There are some arguments that this was because the measures the republicans took. In regards the measures, we can mention that he cut taxes to stimulate people to buy more goods, he also persuaded bussines leaders not to cut wages, he set up the reconstuction finance company, he stoped banks from banckrupt, he also introduced tarifs to protect industries, but it made it worse. Hoover believed that all this economic problems were European's fault. In addition the government didn't intervened, they thought that prosperity would came back alone. He neither helped people of suffering depression, Hoover thought that if he helped them they would became less independet and less willing to work. Although the measures Hoover took, he was known as the president of "doing nothing", american

In the 1920´s, there was an economy growth in the USA, this was called the economic boom. This had happened for several reasons in which we can mention the credits, when people asked for money and paid it back later, and hire purchase, when markets gave people the chance to pay the product they bought every month in quotas until they paid it at all. This two reasons allowed the boom to happened, althogh this was only for part of the population. On the one hand, we can mention that the mind state of american people, both rich and poor, due to the economic boom in the 1920´s, was to have a nice house, a good job, plenty to eat, and to had the latests consumer goods. Their thought was that if they spent more money they would have a better life style. For this reasons, there was created a new method, "buy now pay later", this allowed people to buy everything they wanted, and paid for it when they got the money. This caused an increased on the production since people spent and bu