The New York Stock Exchange Lost Their Value Essay

The New York Stock Exchange Lost Their Value Essay

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The New York Stock Exchange lost their value by 80 percent on October 29, 1929. Millions of people lost their jobs, and many farmers and businesses went bankrupt. The Great Depression for the American People was a catastrophic economic crisis, but that’s not all it was. It was also a psychological revelation that allowed Americans to see the underlying weaknesses and imbalances in the U.S. economy. The 1920s, or the Roaring 20s, was a time of great prosperity, so the depression was a huge turn of events for the American people. Americans lost faith in the laissez-faire market economy system and sought for leadership and change from the government; something that Herbert Hoover was not doing for the country. In the election of 1932 Franklin D. Roosevelt won by a landslide because the American people believed he would bring about change, and so he did. Within his first 100 days of office, Roosevelt created the New Deal as a means to give the American people a sense of security. His programs brought about major changes in the structure of the American economy in hopes to resolve the nation’s economic distress.
The Banking Reform Act of 1933 was the first solution Roosevelt sought to help the American people with the Depression. After Roosevelt assumed office he declared a Bank Holiday, where banking transactions were suspended across the nation to keep the chaos to a minimum. He then passed the Emergency Banking Act, which divided banks into four categories: those deemed fit to reopen, those permitted to allow a percentage of its deposits to be withdrawn, those that were on the brink of collapse, and lastly those unfit to continue business. Roosevelt’s fireside chats reassured and convinced millions of radio listeners that the natio...

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...hod was to use increased government regulation and massive public-works projects to resolve the economic crisis. Before the Great Depression, the government took little or no action in businesses and the economy, but instead the American people relied on market forces for economic correction. However, the Great Depression proved this system to be insufficient in sustaining an economic downfall, such as the Great Depression. It wasn’t until after the United States entered World War II in 1941 did the depression end completely, and it was only through the Great Depression, did Americans discover the need for a fundamental change in the United States’ economic structure. Now government actions such as taxation, industry regulation, public works, social insurance, social welfare services, and deficit spending are a principal role in the United States’ economic stability.

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