The Great Depression

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The 1920s began with an economy in recession but the tide changed immensely when innovation effected many Americans lives for the best producing prosperity. President Hoover started his term in full speed but nothing could brace him for what lied ahead. As President of the United States Americans looked to Hoover for aid and encouragement during an economic disaster. With restricted powers , Americans turned to a new man by the name of Franklin D. Roosevelt to resolve their fears of the economy. President Roosevelt had to establish some sort of security through programs to overcome the Great Depression.

“Black Thursday”(730) seemed like a unrealistic nightmare for many Americans participating in the stock market. Their were many contributing factors to the collapse of the markets in October of 1929. The stock market had reached extreme popularity by the late 1920s with the worth of stocks more than tripling in the billions. Unfortunately, in the shadows stockbrokers were lending a high percent to the investors. The Treasury Secretary supported Income tax cuts with allowed extra currency to circulate through the equity market. Their were signs of fault in the market when certain stocks began to decline, but the Federal Reserve Board increased the interest rates on Federal bank notes to improve the circumstances. Besides the mistakes in the stock market banks played a role by allowing a plethora of loans increasing over all security risks.

The underlying causes later discovered were as significant as the collapse of the stock market. The recession in the early 1920s effected American farmers greatly and they never quite recovered. The famers ended up still struggling through the years that many Americans considered a ...

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...o control the wide spectrum of industries from banking to farming. The average American struggled very much from unemployment to natural disasters, it was a very difficult time in the 1930s. He came in to his Presidency with a optimistic view and had an incredible cabinet that sought to solve the real issues that laid before the United States. With democratic principles he utilized the federal governments power and laid many laws and programs from his initial New Deal. The Second New Deal was just as significant during the depression and his presidency, since it reinforced the first deal and mended areas that were either rejected by the Supreme Court or fell short from the major issues. President Roosevelt left a extraordinary legacy that shows how much two terms can impact an entire countries economic state, political realm and influence for many years to come.

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