Essay An Effective Job Of Handling The Stock Market Crash

1707 Words Mar 17th, 2015 7 Pages
A couple years ago, the economy crashed and people were comparing it to a new depression. However, it was not even close compared to the catastrophe the Great Depression caused: Millions out of work, banks closed, Hoovervilles formed, savings lost, the stock market crashed, et cetera. The U.S. government did an effective job of handling the stock market crash and the depression that followed. The New Deal restored faith in the economy and helped families recover, the U.S.A’s entry into WWII brought the economy to prosperity, and the use of Keynesian economics by the U.S. government brought us out of the Great Depression. One of the key aspects of the recovery initiated by the U.S. government was the New Deal. It is arguably one of the most effective economic recoveries the world has seen. This New Deal helped families out of despair and into prosperity. Firstly, one instance of the New Deal working is with the Social Security Act of 1935. This act reformed the government’s role in providing retirement money to ordinary citizens as illustrated in “The Great Depression and the New Deal” by John Hardman, “[Social Security Act of 1935] In addition to several provisions for general welfare, the new Act created a social insurance program designed to pay retired workers age 65 or older a continuing income after retirement.” (Hardman). The Social Security Act reformed the role of government and people in terms of social safety net. In the past and up to 1935, people had to…

Related Documents