The Great Depression During The 1920 ' S Essay

1370 Words 6 Pages
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. The Great Depression did not end quickly and people were in need of a strong leader who was willing to take action. So, Franklin Delano Roosevelt was elected to lead America away from depression.
FDR stepped into the White House promising a New Deal for people in America. The main principles of this New Deal were relief for the unemployed, reform for institutions, and recovery for the economy. The Emergency Banking Relief Act which was part of FDR’s New Deal, gave the federal government permission to investigate the actions of private banks. FDR also proposed the Federal Deposit Insurance Corporation, which guaranteed investors up to $5000 if the bank lost their money through the stock market. Farm Credit Administration gave low interest…

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