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Great Depression In The 1920's

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The Great Depression that occurred in the 1920's left the United States in a huge mess. It also had a major effect on the rest of the world. Everyone in America was struggling to live and people were trying to figure out how to fix the problem. A lot of ideas were discussed such as Keyens' macroeconomist plan and Hayek's microeconomics plan but these plans were so different. When Franklin Delano Roosevelt was elected president, he went straight to work trying to figure out how to solve America's economic issues. He quickly pushes new legislation through Congress, the basis of the New Deal, in 1933. This "New Deal" included federal government providing immediate assistance to the American people in the form of relief, recovery, and reform. …show more content…

This agency was initially created to give jobs to unemployed construction workers and to help Americans transition from a "nation of renters" into a nation of owners. During the Depression many banks failed, causing a drastic derease in home loans and ownership. At that time, most home mortgages were short-term and the banking crisis of the19'30's forced all lenders to retrieve due mortgages and many borrowers were unable to make mortgage payments. Because of this, many homes were foreclosed which caused the housing market to plummet. When the federal banking system was restructured in 1934, the National Hosing Act of 1934 created the Federal Housing Administration whose intention was to regulate the interest and mortgages what it insured. This new practice increased the number of people who could afford a down payment on a house and mortgage payments which also increased the size of the market for single-family homes. Although the FHA primarily focused on creating single-family and multifamily homes, the agency has also funded military housing and homes for the elderly and handicapped. The FHA is currently to largest insurer of mortgages in the world and has given loans for over 34 million properties since its foundation in 1934. Today, the goals of this organization are to improve housing standards and conditions, provide an adequate home financing system through insurance of mortgage loans, and to stabilize the mortgage

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