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Why Did The Great Depression Changed America

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Prior to the Great Depression, the Federal Reserve Board was created and in 1913 it was meant to act as a lender to prevent bank failures. It acted as a sort of guard for the banks. In the years before the Stock Market Crash, the Federal Reserve Board made market interest rates and low reserve requirements that were beneficial to large banks. Surprisingly, money was becoming abundant in the US. The Federal Reserve board finally realised they could no longer continue what they had been doing. They were allowing customers to only pay 10% and the additional 90% at a later time. They were losing too much and regaining too little. The Stock Market finally crashed and the bank failures were on the rise. Because banks were uninsured when they failed all their customers money was gone as well. This combined with the stock market crash led to the stagnation of purchasing during the Great Depression. This in turn led to a decrease in employment. Unemployment reached an all-time high of 25%. Instead of merely watching President Hoover proposed the Hawley-Smoot Tariff, which was actually not beneficial whatsoever. This raised tariffs, when he should have lowered them. The Great Depression ruffled the …show more content…

And although the changes were mainly economic, the Great Depression highly changed America’s social fabric. Under FDR, American’s burdens were lessened and life improved. Programs for the arts were set up and many radio talents began cropping up. Radio voices such as Huey Long and Father Coughlin began speaking out against the President. Under FDR and his campaign, the CCC was created. This allowed young men to work creating millions of jobs and then send their pay off to their parents to help at home. FDR’s 100 days plan helped retrieve many that were economically unstable get back on their feet again. The most popular being the creation of the FDIC which insured banks so that their customer’s savings could be

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Impact of the Great Depression The Forgotten Man: A New History of the Great Depression, written by Amity Shlaes, gives a lengthy detail of the Great Depression. According to her viewpoint the government handled the situation of the economic crisis very poorly, which led to the Great Depression lasting longer than it suppose to. In this book, Shlaes wrote about observed action taken by Calvin Coolidge, Herbert Hoover and Franklin D. Roosevelt. She gave a detail of the years from 1927 to 1940 and in the beginning of every chapter she mentioned the unemployment rate and the average of Dew Jones Industry.

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The Great depression sent it affects all through the world. Though millions of Americans lost their jobs and homes. Soon “Hoovervilles” started to take over all over the country which were shacks of improvised housing for people who lost everything. When F.D.R came into office in 1932 he helped Americans and America start to recover with the passing of many laws and regulations . One change was the creating of the FDIC, which insured the peoples savings stayed in the bank.

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Roosevelt's first plan of action for the new deal was to provide relief to those living in poverty (the vast majority of the population at the time). To spread the message, FDR held 27 “Fireside Chats” from 1933-1944 establishing a plan for the future of America and the economy (Source 1). FDR's first major initiative was to establish the Federal Emergency Administration Act (FERA), FERA distributed over $3.1 billion dollars, and over 20 million jobs were created (Source 3). FDR also created government programs (such as the AAA, CCC, CWA, and PWA) that both regulated the US and provided jobs for those in need. He also passed The National Industrial Recovery Act that gave states money to create more jobs and formed the National Recovery Administration to regulate and establish fair practice codes for industries.

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The wealth during the 1920s left Americans unprepared for the economic depression they would face in the 1930s. The Great Depression occurred because of overproduction by farmers and factories, consumption of goods decreased, uneven distribution of wealth, and overexpansion of credit. Hoover was president when the depression first began, and he maintained the government’s laissez-faire attitude in the economy. However, after the election of FDR in 1932, his many alphabet soup programs in his first one hundred days in office addressed the nation’s need for change.

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The stock market crash caused a chain of events that ended with 13 million unemployed Americans. Herbert Hoover the current president believed that the economy would fix itself. Hoover’s economic plan was to use the trickle down system, meaning that if the money started at the top it would trickle down to the bottom. His hope was that if he gave money to the federal government they would give money to businesses, businesses would create jobs, and the workers with these jobs would spend money. However, that didn’t happen and by the end of his term many people criticized him for the little involvement he put into ending the depression.

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There were far too many independent banks during the period of the Great Depression, and the problem with the surplus of independent banks was the lack of support they could provide each other. The Run on the Banks resulted in the fall of banks, and an overall lack of confidence in the banking system. The overuse of credit in the economy helped trigger the run on the banks by people taking out loans from banks and then not being able to afford the continual payments, leading them to withdraw their money and shut down the banks. The Stock Market Crash was also a major factor in the start of the Great Depression. People who were buying into the stock market were gambling their money into the stock market in the hopes of making a quick profit (B).

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During the Great Depression, in 1929 when the stock market fell, many Americans were greatly affected in a negative way. Among those negative effects were the closing of thousands of banks, millions of unemployed people, shortage in money, and the loss of many people’s homes. President Franklin Delano Roosevelt fortunately had a way to help, and fix the problems with the closed banks and unemployed persons. In the beginning people began to lose their steady jobs, and had to resort to finding a days work here and there by filling in those days with little odds and ends jobs wherever and whenever they could.

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”If he had failed the whole nation would blame him for their troubles. If he succeeded the whole nation would think he was the greatest president in U.S history. Unemployment reached to 6 million in the year 1930 construction was down 25 percent. “It was Hoover who started the programs to help the depression. ”Chicago reported that 75 percent of the members of the community were unemployed.

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This caused a stalemate with the governments economic relationship with the people in that the government didn't do much to improve the economy until Roosevelt came into office . Yet when Roosevelt first came to office the brain trust and him enacted the banking holiday where he shut down all the banks to be put under inspection so when reopened he could reaffirm there after both throughout fireside chats and throughout FDIC which although passed later was immensely important that banks were safe .This one of the first tools FDR used that brought the government back into social and economic affairs so he could undo the cloud of problems covering the depression. In addition to the creation of the NRA to aid the economy , FDR created welfare programs such as the CWA and the CCC. Both programs put people to work on temporary project funded by the government.

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Roosevelt had many notable achievements during his presidency; his best known achievement was the New Deal. The New Deal created new programs to help give Americans hope and to help bring the United States out of the Great Depression. New Deal programs like the C.C.C. (Civilian Conservation Corp.), the A.A.A. (Agriculture Adjustment Administration), And the W.P.A. (Work Progress Administration), provided jobs to thousands of unemployed Americans. Some of these New Deal programs still exist today such as the F.D.I.C. (Federal Deposit Insurance Corporation), the F.H.A. (Federal Housing Authority), and the T.V.A. (Tennessee Valley Authority). The Agriculture Adjustment Act, established during Franklin D. Roosevelt's first 100 days in office paid farmers to plant less cotton (Louis Mazzari, New Deal).

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The Great Depression was a period of an economic disaster that lasted from 1929 to 1939. The effects of the depression varied across the nation and had a significant impact on all the different classes of the society. The following investigation will explore the impacts of Great Depression on the daily lives of middle-class Americans. Middle-class Americans were severely affected by the Depression mostly because they stood in the most convenient place of the societal ladder, they were neither poor nor wealthy. So, when Depression struck, the middle-class almost disappeared from the ladder because the economic crisis was massive and affected their lifestyles drastically.

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Bartenders, chiefs, lawyers even government officials were losing jobs and losing money. Entire businesses were going bankrupt and riding themselves from every worker they had. With no jobs available to anyone, money was unevenly distributed throughout the United States of America. The Great Depression affected the American people in many ways, from the poor all the way to the government itself. It frightened civilians, caused people to cut back on expenses, bankrupted companies, and hurt the economy in the government.

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Huy Nguyen 08 March, 2023 Social Changes The major cultural and societal changes in the 1920s that paved the way to the Great Depression were the consumer economy, the prohibition of alcohol, and tariffs. These changes were the leading cause of the beginning of the Great Depression time period in America.

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The great depression affected a lot of people, especially the farmers due to price drops. The great depression caused one of the biggest unemployment rates in the World. This depression caused a lot of countries like France and Britain to collapse. The great depression caused a lot of businesses and banks to get closed due to the inability to not pay their workers or because or bankruptcy.

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And to cover up the expense the banks have to get the money from the interests they get on loans. The banks also gave loans to the stock market brokers and as the stock markets failed the bank couldn’t get the moneys back as a result they failed. And this bank failure along the stock market crash caused a great harm to the Us economy. During the mid 1920s the stock market went through

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