He brought in the Reconstruction Finance Corp which was meant to help businesses and farmers, but his view on helping the poor was only that it was responsibility. Herbert Hoover wanted to reform the banking so that mortgage rates would lower down. Congress ended up passing the “Federal Home Loan Bank Act”, which was an act that lowered the costs of home ownership. This was meant to help out homeowners, as well as the farmers so they can refinance their farm loans so they could avoid the need to foreclosure.
Hoover did have ambitions to want to try to help, but unfortunately the law did not prove to be highly effective because it ended up only loaning money to the people who did not need it. The rich were getting richer while the poor was remaining poor, which made Hoover be seen as the man that caused the nations downfall to worsen. Herbert Hoover’s response to the great depression was that there was technical solutions to all the problems communal as well as an economic problem. He tried to encounter the great depression by creating new programs.
All of the programs ended up failing because the Congress party and himself failed to recognize the devastating consequences of acts liek the Tariff Act that would cause negative effects. The acts and programs they were trying to pass all started the chain of global bank failures. He tried dealing with it in a way where he believed new reforms would help but they did not. Hoover’s most ambitious measure in order to elevate the economy was the Reconstruction Finance Corporation, authorizing to provide emergency financing to banks, life insurance companies etc.
He set up the Reconstruction Finance Corporation to bring federals aids to businesses as well as banks. He seen that this would work and recovery was a possibility. But, in late 1932- early 1933 the banking system in America was going downward and the banking system ended up into a complete halt. Hoover’s intentions proved once again to be good but his plan did not end up helping as much as he thought they would have been. Despite Hoover’s failures, we do have to see that he did try to recover the economic downfall. His reputation as a do-nothing is false.
He did not just sit there and endure the Great Depression and all the tolls it took on peoples lives. He worked hard to try to deal with the economic downward spiral. He attempted to bring in the Reconstruction Finance Corporation, reforming bankings and using technical solutions to solve the countries economic struggles. Even though Hoover had great intentions, the great vast of Hoover’s plans did fail and did not bring any help to the countries issues at hand. The depression kept worsening and the rich were remaining rich while the poor was becoming more poor.