Essay on The Great Depression : A Severe Economic Crash

918 Words Aug 25th, 2016 4 Pages
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 a government that guarantees “every man… a right to make a comfortable living” (Foner 809). He won the election with 57% of the votes. When he became president he enacted the New Deal, which changed both the economic and politics of America and in doing so changed capitalism, which then saved capitalism. The first thing Roosevelt had to face was the terrible state the economy was in. 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…

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