The Great Depression was an overwhelming social and economic change to the culture. The Great Depression was a time of widespread poverty, mass unemployment and national bankruptcy. Following a Stock Market Crash in 1929, series of tragedies including bank failures, job loss, and even drought, harmed America until a set of “New Deal” programs restored their glory. Though the Stock Market Crash was known as the start of the Great Depression there were many more causes such as bank failures and droughts. The Great Depression happened between the years of 1929 and 1939.
In addition to North America, the Depression greatly affected Europe and other various countries throughout the world significantly during the 1920’s and 1930’s. The Great Depression was caused by the collapse of the Stock Market, which happened in October of 1929. The crash exhausted about forty percent of the paper values of common stocks. It was the worst depression due to the fact that at the time of the Great Depression the government involvement in the economy was higher than it had ever been. A unique government agency had been set up exclusively to prevent depressions and their related troubles for instance bank panics.
The stock market did crash on October 29 1929. The Federal Reserve tried to do to much to stop the recession and in return brought on the recession that they were trying to stop (America). When the stock market crashed in October this day was known as “Black Tuesday.” On this day Americans saw their stocks lose a tenth of their value. The exact reason for why the stock market busted on this day are unknown (Delong 1). The stock market cras... ... middle of paper ... ...t of 1935, which raised personal income taxes on the highest income levels (America).
The Emergency Banking Act involved first, Roosevelt closing every bank, calling it a “bank holiday” to inspect each one to ensure that they were stable. After declaring the bank stable, the government authorized the Reconstruction Finance Corporation (RFC) to supply funds (p862). This was significant because people had been withdrawing their funds because the declining market and banks weren’t able to supply loans that would increase the money flow.
Following the First World War, another cataclysmic event occurred in the form of a depression. When the stock Market crashed on “Black Tuesday” in 1929 along with various alternate causes such as the installment buying of the 1920s, the United States became encapsulated within a massive economic depression known as “The Great Depression.” After the Election of 1932, the new president, Franklin D. Roosevelt, was elected. Franklin D. Roosevelt along with his advisor group called the “Brain Trust” proposed the revolutionary policy known as the New Deal which drastically changed the basics of American society by distributing wealth as well as giving rights to the disadvantaged. First off, the primary goal of the New Deal was to recover and reform the economy. Operating in three phases the New Deal were relief, recovery, and reform.
Congress voted on a clean debt ceiling increase on May 31, 2011 to prevent this crisis. That legislation had my support, but it was overwhelmingly defeated by Republicans and Democrats. After weeks of inaction by the House Republican majority to avert default, I introduced my own bill, the Don’t Default on America’s Debts and Destroy America’s Job Act (H.R. 2544). This bill raises the debt ceiling while also calling on Congress to cancel its August recess in order to produce legislation that creates jobs, grows the economy, and reduces long-term budget deficits.
People began to fear that the boom was going to end, the stock market crashed, the economy collapsed and the United States entered a long depression. The Great Depression of the thirties remains the most important economic event in American history. It caused enormous hardship for tens of millions of people and the failure of a large fraction of the nation’s banks, businesses, and farms. The stock market crash in October 1929 is believed to be the immediate cause of the Great Depression, but there were many other factors and long-term causes that developed in the years prior to the depression. The 1920’s may have been prosperous for some Americans, but the growing prosperity was actually weakening the economy.
Because of president hoover's wide unpopularity, people began calling homeless tent camps “Hoovervilles” and an... ... middle of paper ... ...k in full production. This expanding industrial production reduced the unemployment rate to below its pre-Depression level, finally and officially ending the Great depression. The Great Depression and the New Deals forever changed the relationship not only between Americans and their government, but as well as many other countries that suffered from the depression. Government involvement and responsibility in taking care for the poor and regulating the economy became expected by the citizens. Its possible that the Great depression could happen again, but very unlikely now that there are regulations on the stock market to assure we wouldn't suffer like in 1929.
In fact, Hoover is ranked 9th place in the worst presidents list, according to U.S. News. Perhaps of his shy and introverted personality, he decided not fix the Great Depression because he did not want to make the situation worse. Although, doing something is better than doing nothing. Also, he sent the Army to clear America’s WWI veterans from their campsite in Washington D.C. The infantry and cavalry paired with six tanks were ordered to clear out the veterans and their families, Hoover killed his own people.
On November 5th of 1932, I was elected as the leader of the country with John Nance Garner, as my Vice President. Simple enough, I went with the slogan, “Happy Days Are Coming”, fitting for the terrible depression America was facing at the moment. One of my first actions when I was in office, which began on March 4th of 1933, was the New Deal. The New Deal was part of my campaign that gave hope to America and had most likely won me the election. This “Deal”, were a group programs I set off after taking office in 1933, to help build the economy back up and soften the Depression.