Most of the nation’s banks also failed because they had to put the depositors money in the stock market to increase but when it crashed people lost most of their money. Many people started to lose faith in the stock market and “you can’t have a healthy economy without confidence in the market.” When banks and businesses started to close many people became unemployed and then people can’t afford food for themselves or for their family. People started to take loans from banks but then couldn’t repay the banks and the banks couldn’t let their depositors withdraw any money because it is all gone or given for loans. From the start of the depression the United States economy was going down day by day. President Roosevelt had closed all the banks for three days and then some banks opened backed up with strict limits on withdrawals.
Great Depression The Great Depression and the New Deal In response to the Stock Market Crash of 1929 and the Great Depression, Franklin D. Roosevelt was ready for action unlike the previous President, Hubert Hoover. Hoover allowed the country to fall into a complete state of depression with his small concern of the major economic problems occurring. FDR began to show major and immediate improvements, with his outstanding actions during the First Hundred Days. He declared the bank holiday as well as setting up the New Deal policy. Hoover on the other hand; allowed the U.S. to slide right into the depression, giving Americans the power to blame him.
Now there were more programs, like the Social Security program, and events like the emergency banking act of 1933. Events like this provided a way for banks to reopen once the examiners had found them to be financially secure. Within three days of Congress passing the act about 5,000 banks had reopened. Other events like when Franklin Delano Roosevelt order to close banks temporarily created the FDIC (Federal Deposit Insurance Corporation) which was supposed to insure individual deposits to prevent future banking problems. Now just because we had these events and acts does not mean that we no longer have some of these problems today.
Franklin Delanor Roosevelt (FDR) is responsible for creating and establishing the New Deal which saved the United States after the Great Depression. The New Deal was important because the United States was in a major financial hole and had to get itself out. After the stock market crashed in 1929 there were millions of people who were struggling just to get something to eat and have a roof to sleep under. The program that FDR created made it possible for the U.S. to get up and dust itself off. It created jobs and many organizations that were responsible for a lot of the public works and state department organizations that we still use today.
The CCC (1933-1942) provided work for young men to perform unskilled jobs in rural areas. This law provided employment in fresh-air government camps for about 3 million uniformed young men, many of whom might otherwise have been driven into criminal habits (830, Kennedy). Their jobs included the following: reforestation, firefighting, flood control, and swamp drainage. The recruits were required to help their parents by sending home most of their pay (830, Kennedy). Thoug... ... middle of paper ... ...uted to the addition of jobs for countless Americans including the Public Works Administration and Civil Works Administration but these did not last as long for they were a temporary fix to an overflowing economy of jobless Americans.
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.
The Grapes of Wrath: Connections to the Great Depression The decaying state of the American economy and the onset of the Great Depression in the 1930s brought about the necessity for the United States to reconsider its attitudes and examine the long term effects of its policies concerning wide-scale socioeconomic problems that were constantly growing bigger. The Great Depression led to the creation of many new and innovative government policies and programs, along with revisions to older economic systems. However, these cost the government billions of dollars in a country that had consistently been stretching the gap between the rich and poor. This continued as the Great Depression began to change everything people had grown old knowing, and it forced everyone to deal with dramatic alterations to their lives that left them with no options except acceptance. America then witnessed the mass migration of farmers from the Dust Bowl out to the west towards California and the required intervention by the federal government in stepping up and taking responsibility for the socioeconomic issues plaguing the disintegrating nation.
He was elected president in November 1932. By March there were over thirteen million people that were unemployed, and almost every bank was closed. Franklin D. Roosevelt proposed a sweeping program to being recovery to business and to agriculture and relief to those who were in fear of losing their farms and homes to being unemployed. In 1935, recovery was slowing arriving, but more And more people were turning against Roosevelt’s New Deal program. This led Roosevelt to a new program of reform, which we know today as social security.
The people that were affected the most by the Great Depression were stockholders. Thousands of stockholders lost enormous amounts of money on Black Tuesday. The rapid decrease of stock prices made stockholders lose their money within one day. Even though it was a devastating loss, there was no way to predict it. From 1925 to 1929, the average stock price doubled on the New York Stock exchange, making people invest ludicrous amounts of money in the hope that they would make a hug... ... middle of paper ... ...hange crash of October 1929 and therefore the succeeding depression alerted stockholders to be concerned about their own investments within the stock exchange instead of the data of other people’s investments.
This left banks all over the nation bankrupt. This day is known as Black Thursday. On October 29, the stock market lost over $5 billion in stock values with this leaving businesses and people in complete devastation about how to cope with this mishap. With banks going bankrupt there was people left living on the streets, people losing their jobs, businesses going bankrupt, and everyone not meeting their financial needs. This left Hoover to help and recover their losses over this huge dramatic change.