Which of the following best characterizes the initial governmental response to the Great Depression?

Question

Quizplus · Accepted Answer

The initial governmental response to the Great Depression was largely characterized by a continuation of the laissez-faire policies that had prevailed throughout the 1920s. Many in government believed that the Depression would be a temporary setback and that the economy would soon recover on its own. As a result, relief efforts were slim and focused on maintaining stability in the banking system rather than assisting the unemployed.

Note: While some efforts were made by the Hoover administration to address the economic downturn, including the creation of the Reconstruction Finance Corporation, these measures were criticized as inadequate by many at the time and did not have a significant impact on the economy. The federal government did not begin to take more aggressive action until the New Deal programs instituted under the Roosevelt administration.

Which of the Following Best Characterizes the Initial Governmental Response