Essay Test: Great Depression, Hoover, and F.D. Roosevelt

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Soon after the Great World War, America hit an era called “The Roaring 20’s,” where continuous economic prosperity crossed paths with a culturally and socially modified atmosphere. An entirely new lifestyle was created. New forms of entertainment were developed, including but not limited to theaters, the production of movies and movie theaters, and most importantly, the radio, which was soon to be found in every household. Henry Ford, an American industrialist, made cars affordable, which allowed for people to live further from their workplaces, transport much quicker than ever before, and take vacations to far away places. So long were the days where conservatism held back the social status of women and African Americans. During this period, women gained suffrage, developed a new sense of style, smoked, and changed many other aspects of traditional female life while African Americans invented a new form of music called jazz, in Harlem, NY. This was a period of extreme prosperity for the American people, its corporations and big businesses, and its investors. There was a rise in hope and individualism, and every person thought that if they invested in the stock market, there was a chance they would strike gold and become rich. This led to the creation of “buying on a margin”. When a person did not have enough money to pay the full rice of a stock, they would but it “on margin,” which meant that they would buy a portion of it on credit (borrow money from the bank). They would then sell the stock for a higher price, enough to pay back the bank and save a bit of money for themselves. Over-speculation, as well as other causes of the great economic bust- such as under-consumption, the flaws in the banking system, unequal distribution o... ... middle of paper ... ...e shouldn’t rely on the government for support, but should support themselves though sacrifice, hard work, and determination. He supported the idea of “Trickle Down Economics.” This is when the rich are given so much wealth, the wealth they don’t need seeps down to the middle and lower classes. However, this wasn’t entirely true and failed. Hoover’s goals to help the unemployed can be seen through his actions. He established the Reconstruction Finance Corporation (RFC) which had over two millions dollars to loan to failing bank, help farmers pay farm mortgages, set up internal improvements, and loan money to railroads. Unfortunately, this wasn’t good enough, and didn’t do much to help the economy. Hoover also passed the Federal Home Loan Bank Act, which was designed to increase funds for banks, which would in turn fund individuals and help them with home mortgages.

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