Government Change In The New Deal During The Late 1920's

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During the late 1920’s the Great Depression was underway. The Hoover administration was trying to combat the problems through different tactics and programs along the way. This differed with the Roosevelt administration as they used different tactics and programs to try and combat the Great Depression. Some of the problems that were created by the Great Depression were resolved, however some continued on. Because of the Great Depression the role of the Federal Government changed. The Great Depression began in the late 1920’s. One out of four Americans were unemployed and 500,000 people had lost their homes (David Shi 829). The Depression started by the rise and then great fall of the stock markets. On October 29th, the stock market took …show more content…
In 1932 Hoover was forced to do more towards the depleting economy by a new congress (David Shi 839). Congress created the Reconstruction Finance Corporation. This was to provide emergency loans to banks, life insurance companies and railroads that were struggling (David Shi 839). This was an act that did not approach the common American man and some Democrats were searching for federal help towards the struggling people. Unfortunately, Hoover approved only the Reconstruction Finance Corporation, leaving the people to struggle.
Considering the Hoover administration greatly underestimated the Great Depression, there had to be a change for the sake of the country. Roosevelt in 1932 won the presidential election and promised that he would create a “New Deal” that would make a new government (David Shi 843). Unlike the Hoover administration the Roosevelt administration took notice of the struggling economy and promised to act upon it. The New Deal was to help balance a budget, develop emergency relief for the jobless, an agreement on unions and to raise depressed farming prices (David Shi
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This Act was to provide federal assistance to retired workers through a tax-funded pension with payments and give benefit payments to those unemployed and disabled (David Shi 856). The Act set up a federal unemployment program that was financed by a payroll tax on employers (David Shi 857). The legislation also committed the national government into a range of social-welfare activities that were based on those who couldn’t be employed and would remain the states responsibility (David Shi 857). The government would then be responsible for work relief. The Social Security Act did not help those who were working as it took money out of their pockets and worsened the money supply. The Act also excluded those who needed it most such as farmers, self-employed and African Americans (David Shi 857). Roosevelt seemed to feel regret from the new act but recognized that for it to be approved he had to play by the rules and regulations that he knew congress would

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