The Great Depression and the Recession of 2008 are infamous events that many Americans know well. Both are seen as terrible times for the economy for good reason; they are well known for the suffering they caused for an extended period of time. However, they have more in common than many realize; the Recession of 2008 was saved from further chaos by reviewing the past and building on previous mistakes. The Great Depression was the worst economic crisis in the history of America. It began with the crash of the Stock Market in 1929. Stocks were popular and seen as an easy way to make quick money. When the stock market crashed, many people lost all their money. This was the first sign of the Great Depression (Stone 7-8). After stocks,
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He immediately implemented his “New Deal,” fixed the Reconstruction Finance Corporation, and created new acts. However, the economy became worse immediately before he took office. Right away, he ordered a four-day holiday to figure out the financial problems. Emergency banking laws were put into place after careful examination of finances. Americans began to trust in the banks after these changes, and quickly deposits outnumbered withdrawals (Stone 17). In May, Roosevelt created the Federal Emergency Relief Administration to give out more money to states for relief. Afterwards, he began to look over Hoover’s Reconstruction Finance Corporation. He added changes to make it achieve the goals set before it. He allowed for more loans to be given through it, hoping more money meant better economy. In June, he continued changing previously existing acts; he corrected the Glass-Steagall Act to insure people’s deposits to avoid more banks runs in the future (Stone 17, 19). Roosevelt then set off ensuring jobs for the unemployed. He set up three major agencies: the Public Works Administration, the Civilian Conservation Corps, and the Works Progress Administration. The PWA created projects to allow for jobs. Hospitals, schools, and bridges are some of the things the PWA created. The WPA hired unemployed workers to finish these projects and gain financial aid while still having a “job.” This …show more content…
Mainly, many people believed the reason America was able to overcome the Great Depression was due to WWII. Because of this war, many Americans were employed as a soldier or worked in wartime factories. Likewise, the amount of spending during the wartime contributed to the stimulation of the economy (“What Ended the Great Depression?”). In 1939, 11% of Americans were unemployed. When America joined World War II, that number was cut in half. The government poured money into the war effort, going towards special factories for war supplies and buying farmer’s crops for soldiers’ food (Wisman). However, if the war was the true ending of the Great Depression, how then would Obama’s policies, which parallel Roosevelt’s, have helped in the Recession of 2008? Because Roosevelt died at the end of the war, we may never know if his fixed “New Deal” would have helped the aftereffects of the better, but still not the best, depression-stricken economy (“What Ended the Great Depression?”). The Recession was used to banking crises, compared to the Great Depression’s 4 major crises
He immediately implemented his “New Deal,” fixed the Reconstruction Finance Corporation, and created new acts. However, the economy became worse immediately before he took office. Right away, he ordered a four-day holiday to figure out the financial problems. Emergency banking laws were put into place after careful examination of finances. Americans began to trust in the banks after these changes, and quickly deposits outnumbered withdrawals (Stone 17). In May, Roosevelt created the Federal Emergency Relief Administration to give out more money to states for relief. Afterwards, he began to look over Hoover’s Reconstruction Finance Corporation. He added changes to make it achieve the goals set before it. He allowed for more loans to be given through it, hoping more money meant better economy. In June, he continued changing previously existing acts; he corrected the Glass-Steagall Act to insure people’s deposits to avoid more banks runs in the future (Stone 17, 19). Roosevelt then set off ensuring jobs for the unemployed. He set up three major agencies: the Public Works Administration, the Civilian Conservation Corps, and the Works Progress Administration. The PWA created projects to allow for jobs. Hospitals, schools, and bridges are some of the things the PWA created. The WPA hired unemployed workers to finish these projects and gain financial aid while still having a “job.” This …show more content…
Mainly, many people believed the reason America was able to overcome the Great Depression was due to WWII. Because of this war, many Americans were employed as a soldier or worked in wartime factories. Likewise, the amount of spending during the wartime contributed to the stimulation of the economy (“What Ended the Great Depression?”). In 1939, 11% of Americans were unemployed. When America joined World War II, that number was cut in half. The government poured money into the war effort, going towards special factories for war supplies and buying farmer’s crops for soldiers’ food (Wisman). However, if the war was the true ending of the Great Depression, how then would Obama’s policies, which parallel Roosevelt’s, have helped in the Recession of 2008? Because Roosevelt died at the end of the war, we may never know if his fixed “New Deal” would have helped the aftereffects of the better, but still not the best, depression-stricken economy (“What Ended the Great Depression?”). The Recession was used to banking crises, compared to the Great Depression’s 4 major crises