This caused many workers wages to decrease. Unfortunately nothing could be done for these workers. They had to stay with their low wages because they had to support their family.
When the economy was spiraling downward, president Hoover knew something needed to be done quickly and effectively. Hoover proposed a deal in which would provide federal funding for job programs and poor relief. The center of this proposal was the Reconstruction Finance Corporation. When the president presented this proposal to Congress, they were eager to put a stop to the downward spiral and without any hesitation they signed it. .
Unfortunately Hoovers plan failed. Instead of trying to give money to the people and helping them out, he was more concerned with helping the banking industry. Even with the entire money president Hoover gave to the banks, it could not keep them up and running. With most families life savings in the banks families were left with nothing. They had no money and no jobs. In the middle of 1932, one in every four workers was out of a job (Easforth 65). Without a job men could not afford to support their families and this caused many of them to go homeless.
"In 1932 the Great Depression engulfed urban as well as rural America. Since 1929 national income has declined more then 50 percent. Manufacturing output in 1932 was just half of what it had been three years earlier. Business failure had increased each year since 1930. By mid-year nearly 12 million workers were unemployed, and perhaps half that numbers were working reduced schedules. These involuntary part timers were suffering doubly from shorter hours and deep cuts in wage rates. As a group American wage earners were paid 40 percent less in 1932 than 1929. Poverty increased among urban workers and their family"(47 Edsforth). .
Americans knew something need to be done. They realized that President Hoover was not going to do it.
