Causes Of The Great Depression

The Great Depression of the 1930s is a period in history that will never be forgotten all around the world. It is described as the worst economic slump ever to have an effect on the United States, and as a result the rest of the industrialized world. The Depression brought with it a number of repercussions for example a huge decline in the standards of living of the working class, the breakdown of numerous nations' economies and massive political turmoil and division. The Great Depression was the most distressing economic catastrophe in history of the United States. In 1932, America acknowledged it was time for a change, and elected Franklin D. Roosevelt in a landslide vote. Roosevelt promised to help end the depression and with his New Deal.

The main cause of this was the the introduction of the Federal Housing Administration or FHA. The FHA was created because of the banks failing which forced them to retrieve due mortgages. However, many borrowers were now unemployed and were unable to make mortgage payments, so many homes were foreclosed, causing the housing market to plummet. This caused a drastic decrease in home loans and home ownership. The administration was created by the National Housing Act of 1934 to sets standards for construction and to insure loans made by banks and other private lenders for home building. It’s goals were to improve housing standards and conditions, provide an adequate home financing system through insurance of mortgage loans, and to stabilize the mortgage market. The intention was to regulate the rate of interest and the terms of mortgages that it insured, so people could afford a down payment on a house and monthly payments on a mortgage. This was a very successful program created by the government as the amount of homeowners began to rapidly grow. However, this program had a very negative impact on minorities and the options they had for housing because it established mortgage underwriting standards that significantly discriminated against minorities, and also made it extremely difficult for minorities to get mortgages. Even from private investors as

The country is not in great hands at this moment as, “He (Trump) said he’d surround himself with all the best and smartest people. You bought it. Then he put Betsy DeVos, opponent of public education, in charge of education; Jeff Sessions, opponent of the Voting Rights Act, in charge of voting rights; Ben Carson, opponent of the Fair Housing Act, in charge of fair housing; Scott Pruitt, climate change denier, in charge of the Environmental Protection Agency; and Russian quisling Rex Tillerson as Secretary of State”(Reich), so the majority of the country is already unhappy with this. If he were to create something like the New Deal with such large impact it would definitely cause outrage and uproar. Even under this control we are not in a state of emergency as they were during the time of the Great Depression, so implementing programs that were created in a time of great need for them would be useless. It would do absolutely nothing for today’s economy, so it is simply unnecessary. If anything it would hurt the economy with all of the excess money that would be spent to fund these programs. To pay for these programs back then was almost impossible with such cost. Imagine what it would be like today when adding inflation to the equation. This would take our already unpayable