How Did FHA Help End The Great Depression

October 29th, 1929 was the day everything changed in the United States. This historical date marked the beginning of the Great Depression. Known for its vast amount of unemployment, destitution, and starvation. With Hoovervilles planting roots all over from Virginia to California during a nationwide devastation, the government decided to intervene. Although there were many solutions to this major problem, the one that affected it the most were the labor reforms. Work relief programs such as the New Deal, the Tennessee Valley Authority, the Federal Housing Administration, the National Labor Relations Act, and the Fair Labor Standards Act helped America recover from its darkest hour. First and foremost, the proposal by Franklin Delano Roosevelt

Likewise, Andra C. Grant says, “Between 1929 and 1932, home prices in New York fell an average of 50% and the unemployment rate rose substantially. As a result, many residential mortgages were at serious risk of foreclosure. Lenders in the 1930s faced substantial incentives to avoid foreclosure” (Grant). Most Americans couldn’t afford to buy a home prior to this downfall. The down payment was 80% upfront, and people only had five to seven years to pay the remaining amount (“How Did the FHA Help End the Great Depression?”). However, in 1934 a reform called the Federal Housing Administration uprooted. (“How Did the FHA Help End the Great Depression?”). It helped recreate the failing housing market. It is known for lowering down payments, creating a longer loan period, and introducing the idea of paying interest over time and loan standards (“How Did the FHA Help End the Great Depression?”). Through solving the housing problems, the Federal Housing Administration helped get America back on its

Even the president said, "Something has to be done about the elimination of child labor and long hours and starvation wages" (Roosevelt). People worked to their breaking points and then still not being able to provide for their families. People were paid “starvation wages”, which are wages that are not high enough to pay for necessities (“Merriam-Webster”). Hoovervilles, otherwise known as hobo-camps or squatter-camps, began to arise (“Hoovervilles”). Obviously, extreme poverty and famine were a huge problem. The government got involved. FDR stated, "Do not let any calamity-howling executive with an income of $1,000 a day, ...tell you...that a wage of $11 a week is going to have a disastrous effect on all American industry" (Roosevelt). As a result, the Fair Labor Standards Act went into effect. Moreover, the Fair Labor Standards Act established minimum wage to prevent starvation wages, record keeping to avoid long hours, and regulations on child labor to prevent the labor abuse of children (“Fair Labor Standards Act (FLSA) of 1938”). It also put standards on how much employers had to provide. For example, things such as vacation, sick days, or raises are not required underneath the Fair Labor Standards Act (“Fair Labor Standards Act (FLSA) of 1938”). Through placing regulations on labor practices, the Fair Labor Standards Act helped people begin to have rights in their jobs, therefore making work be little