During the 1920’s, people in America seemed to live in a world of wealth and luxury. The economy was booming due to little government interference and workers were receiving higher wages. People could choose from new products such as refrigerators, washing machines, and cars. However, this prosperity wouldn 't last long. The people of this era were part of the worst economic depression in history. Many people lost their jobs and millions of dollars after the stock market crashed in 1929. After having little regulation of the economy during the 1920s, people were in desperate need of government assistance. Hoover followed his conservative approach and chose to do little or nothing about the depression, thinking that it will end eventually.
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The Securities and Exchange Commission was formed to investigate the buying and selling of shares of stock on Wall Street to prevent future speculation. The Federal Housing Administration insured bank loans that were distributed to construct new houses and repair old homes. In 1935, Roosevelt helped create the Works Progress Administration to help the unemployed Americans find jobs. In its first year of existence, the WPA helped 3.4 million men and women find jobs in factories and other professions throughout the country. Like the PWA, WPA workers built bridges, roads, and public buildings and a section of the WPA, the National Youth Administration, gave part time jobs to students that were staying in school. Since the National Recovery Administration was declared unconstitutional, Roosevelt and Congress passed the National Labor Relations Act of 1935, also known as the Wagner Act. This gave laborers the right to join unions and bargain collectively with their employers without being prosecuted in court. The reform of the Second New Deal that would have the greatest impact on Americans for the entire century was the Social Security Act of 1935. Taxes were collected from the salaries of employees, placed into a federal insurance program, and redistributed to retired citizens that were 65 years or older. The last act of the New Deal was the Fair Labor Standards Act of 1938, which created a minimum wage, a maximum workweek, and more child labor laws. There were different opinions surrounding the effectiveness of this New Deal. According to history professor Roger Biles, the New Deal was an effective answer to the Great Depression. However, Gary Dean Best, who was a history professor thought that it wasn’t the correct solution for the Great Depression. I also agree with Gary Dean Best because the stock market, in later years crashed again, but at the same time FDR did a great job
The Securities and Exchange Commission was formed to investigate the buying and selling of shares of stock on Wall Street to prevent future speculation. The Federal Housing Administration insured bank loans that were distributed to construct new houses and repair old homes. In 1935, Roosevelt helped create the Works Progress Administration to help the unemployed Americans find jobs. In its first year of existence, the WPA helped 3.4 million men and women find jobs in factories and other professions throughout the country. Like the PWA, WPA workers built bridges, roads, and public buildings and a section of the WPA, the National Youth Administration, gave part time jobs to students that were staying in school. Since the National Recovery Administration was declared unconstitutional, Roosevelt and Congress passed the National Labor Relations Act of 1935, also known as the Wagner Act. This gave laborers the right to join unions and bargain collectively with their employers without being prosecuted in court. The reform of the Second New Deal that would have the greatest impact on Americans for the entire century was the Social Security Act of 1935. Taxes were collected from the salaries of employees, placed into a federal insurance program, and redistributed to retired citizens that were 65 years or older. The last act of the New Deal was the Fair Labor Standards Act of 1938, which created a minimum wage, a maximum workweek, and more child labor laws. There were different opinions surrounding the effectiveness of this New Deal. According to history professor Roger Biles, the New Deal was an effective answer to the Great Depression. However, Gary Dean Best, who was a history professor thought that it wasn’t the correct solution for the Great Depression. I also agree with Gary Dean Best because the stock market, in later years crashed again, but at the same time FDR did a great job