The Great Depression was a severe economic crash worldwide that began after the stock market crash of October 1929. The reason the Great Depression had such a dire effect was the fact that it came as a great surprise to the world especially America. Eight days before Black Tuesday, President Herbert Hoover gave a speech in Michigan about businessmen and scientist efforts from which “ we gain constantly in better standards of living, more stability of employment… and decreased suffering” (Foner 799). President Hoover’s response seemed to many Americans as inadequate and uncaring. As a result, when the election of 1932 came, everyone was looking for a knight in shining armor. The knight in shining armor was Franklin D. Roosevelt. He spoke of
…show more content…
For instance, by March 1933, the majority of states had already suspended banking. To overcome this problem Roosevelt passed several acts under the New Deal. For example, he passed both the Emergency Banking Act and the Glass-Steagall Act. The Emergency Banking Act allowed the government to inspect the financial health of insolvent banks and then provide funds to shore up threatened banks while the Glass-Steagall Act prevented commercial banks from buying and selling stocks. He also removed the America from the gold standard, which made possible to insure more money in hope that it will stimulate business activity. All these changes not only saved the financial system, but also increased the government’s control over it. For instance, between 1929 and 1933, 5000 banks failed in the United States, but in 1936 not a single bank had failed. Roosevelt’s master plan to fight the depression was the National Industrial Recovery Act. Roosevelt called it “the most important and far-reaching legislation ever enacted by the American Congress” (Foner 813). It formed the National Recovery Administration (NRA), “ which would work with groups of business leaders to established industry codes that set standards for output, prices, and working conditions” ended cutthroat competition and recognized the right of workers to form unions (Foner …show more content…
Because of the New Deal the government kept regulations on businesses, on wages, they allowed the workers to form unions in the Wagner Act and the government got involved in business itself. For example, the Tennessee Valley Authority (TVA), a public-work project, built a series of dams to prevent floods and kept the government, for the first time, “in the business of selling electricity” (Foner 817). Walter Lippmann, an American reporter, wrote “Laissez-faire is dead, and the modern state has become responsible for the modern economy and the task of insuring… the standard of life for its people” (Foner 826). The change in capitalism saved it. During the Great Depression different countries took different approaches to fix the problems they had. In Germany, Adolf Hitler formed a dictatorship while in the Soviet Union Joseph Stalin form a communist country. The American people saw the reason for the Great Depression a result of capitalism, and when they saw other countries are changing their political system they thought that their political system also needed to change. John Maynard Keynes, a British economist, wrote to Roosevelt that if he failed the only choice would be “orthodoxy or revolution” (Foner 812). However, Roosevelt did not fail, the New Deal improved the economy, got people back to work and provided economic security to most people. By changing capitalism, Roosevelt saved it. People
For instance, by March 1933, the majority of states had already suspended banking. To overcome this problem Roosevelt passed several acts under the New Deal. For example, he passed both the Emergency Banking Act and the Glass-Steagall Act. The Emergency Banking Act allowed the government to inspect the financial health of insolvent banks and then provide funds to shore up threatened banks while the Glass-Steagall Act prevented commercial banks from buying and selling stocks. He also removed the America from the gold standard, which made possible to insure more money in hope that it will stimulate business activity. All these changes not only saved the financial system, but also increased the government’s control over it. For instance, between 1929 and 1933, 5000 banks failed in the United States, but in 1936 not a single bank had failed. Roosevelt’s master plan to fight the depression was the National Industrial Recovery Act. Roosevelt called it “the most important and far-reaching legislation ever enacted by the American Congress” (Foner 813). It formed the National Recovery Administration (NRA), “ which would work with groups of business leaders to established industry codes that set standards for output, prices, and working conditions” ended cutthroat competition and recognized the right of workers to form unions (Foner …show more content…
Because of the New Deal the government kept regulations on businesses, on wages, they allowed the workers to form unions in the Wagner Act and the government got involved in business itself. For example, the Tennessee Valley Authority (TVA), a public-work project, built a series of dams to prevent floods and kept the government, for the first time, “in the business of selling electricity” (Foner 817). Walter Lippmann, an American reporter, wrote “Laissez-faire is dead, and the modern state has become responsible for the modern economy and the task of insuring… the standard of life for its people” (Foner 826). The change in capitalism saved it. During the Great Depression different countries took different approaches to fix the problems they had. In Germany, Adolf Hitler formed a dictatorship while in the Soviet Union Joseph Stalin form a communist country. The American people saw the reason for the Great Depression a result of capitalism, and when they saw other countries are changing their political system they thought that their political system also needed to change. John Maynard Keynes, a British economist, wrote to Roosevelt that if he failed the only choice would be “orthodoxy or revolution” (Foner 812). However, Roosevelt did not fail, the New Deal improved the economy, got people back to work and provided economic security to most people. By changing capitalism, Roosevelt saved it. People