How Did The New Deal Affect The Economy Of The 1930s
The stock crash in 1929 seems marked the end of the roaring twenties. Thousands of people lost their working capital. At that time, many people support the idea of the stock market will rise, but the reality isn’t, because the economy of 1920s is an illusion. More than sixty percent of households with incomes below their living needs (Why). Also, farmers’ low-income …show more content…
Roosevelt to become their new president. He prove to help the problems of poverty and unemployment. Also he shows a “can do” attitude to the public. During his waiting period of becoming a president, he and his team work out to create a new policy called “New Deal”. The goal of the New Deal can be described in three word: relief, recovery and reform (Danzer 489). Provide programs to help people relief people from the poverty, recovery from the economic problem of the society, reform to avoid the same issue in the future.
Roosevelt try to achieve the “relief” and “recovery” by creat different programs to provide job, and also help people in a direct way. The Home Owners Loan Corporation (HOLC) give government loan to the people can’t pay their house loan. The Federal Emergency Relief Administration (FERA) give aid to help the unemployment, aged, and ill people.
The Agricultural Adjustment Act (AAA) is most debatable program, it helps farmers to increase prices of the crop by pay to leave certain amount farmland unseeded. When price of food increase, less people can afford it. However the program helped solve the bad cycle between farmer and banks, but there is a