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by giving government loans to businesses and banks.

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14y ago

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When was Bennington Battle RFC created?

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How was the reconstruction finance supposed to battle the depression?

by giving government loans to businesses and banks


How was the Reconstruction Finance Corporation supposed to battle the depression?

by giving government loans to businesses and banks


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The RFC (Reconstruction Finance Corporation) was established by Congress in 1932. It was Hoover's desire to have the RFC lend money to banks, railroads, and other key economic institutions to make sure these institutions would remain in business. The idea was to help these businesses that had a shortage of capital. The RFC was not popular because the public viewed it as government helping big business at the expense of the workers who were earning less and the unemployed. It was based on Andrew Mellon's "trickle-down economics" but the problem was that little money trickled down to the average American. The RFC was continued by the New Deal of FDR and all the loans it issued were paid back to the government. It also set up relief programs under the New Deal and helped handle the Depression, along with other agencies, for the New Deal.


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