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…
One of these problems was with the banks. The banks had no time to recover from the panic. Roosevelt in turn passed the Emergency banking relief Act (David Shi 844). The Act got the banks to have a four-day holiday. The four days allowed the banks to have relief from the panic as Roosevelt reassured the American People that their money was safe. After, Roosevelt also created the Federal Deposit Insurance Corporation (David Shi 844). This was another tactic to put the American people at ease about their bank accounts. There was also an additional act included called the Glass-Steagall Act that called for separation of commercial and investment banking. The purpose was to prevent banks from investing their depositor’s money into risky stocks (David Shi 844) . The federal reserve at the same time were given authority to intervene if there ever was another crisis. The crisis concerning the banks were deemed …show more content…
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
One of these problems was with the banks. The banks had no time to recover from the panic. Roosevelt in turn passed the Emergency banking relief Act (David Shi 844). The Act got the banks to have a four-day holiday. The four days allowed the banks to have relief from the panic as Roosevelt reassured the American People that their money was safe. After, Roosevelt also created the Federal Deposit Insurance Corporation (David Shi 844). This was another tactic to put the American people at ease about their bank accounts. There was also an additional act included called the Glass-Steagall Act that called for separation of commercial and investment banking. The purpose was to prevent banks from investing their depositor’s money into risky stocks (David Shi 844) . The federal reserve at the same time were given authority to intervene if there ever was another crisis. The crisis concerning the banks were deemed …show more content…
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