The 1920s flourished with many new inventions, everyone was rushing to buy one for themselves. Except of course, the people who were too poor to afford one, which was “40 percent of the population” (Foner). The “Roaring Twenties” was only truly roaring for the rich, white, upper class. Not only was the 1920s horrible for anyone who wasn’t white, it’s instability had the Domino Effect. People were buying on credit, and were splurging on stocks. This went smoothly until the stock market crashed, and everyone rushed to withdraw their money. All of the banks were quickly emptied, even people who had money in the bank, couldn’t withdraw it, they became poor. The Great Depression was caused by instability created in the 1920s. It was fun for the rich people, they could buy, buy, buy using credit, while the poor were left to starve (GML pg. 763).
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People needed jobs so he created the New Deal. The New Deal focused on fixing the economy, by creating jobs. Using public labor to create a series of dams “Created thousands of jobs for the unemployed” (Foner) which helped them get back on their feet. He believed in Keynesian economics, that the more the Federal Government puts into the economy, the more it flourishes. Another important element that Roosevelt addressed was the “Banking system [that was] on the verge of collapse” (Foner). He passed the Glass-Steagall Act, which prohibited commercial banks from buying, and selling stocks. This stopped the banks from making the same mistakes that caused the stock market crash. New jobs, secure banks, and unions are a few of the the helpful things included in the New Deals, but like Hoover, Roosevelt wasn’t perfect. His new deals didn’t help everyone, there was still abundant racism, and farmers who didn’t have land were still struggling. Roosevelt did a wonderful job pulling America out of the Depression, but he did not fix everything (GML pg.
People needed jobs so he created the New Deal. The New Deal focused on fixing the economy, by creating jobs. Using public labor to create a series of dams “Created thousands of jobs for the unemployed” (Foner) which helped them get back on their feet. He believed in Keynesian economics, that the more the Federal Government puts into the economy, the more it flourishes. Another important element that Roosevelt addressed was the “Banking system [that was] on the verge of collapse” (Foner). He passed the Glass-Steagall Act, which prohibited commercial banks from buying, and selling stocks. This stopped the banks from making the same mistakes that caused the stock market crash. New jobs, secure banks, and unions are a few of the the helpful things included in the New Deals, but like Hoover, Roosevelt wasn’t perfect. His new deals didn’t help everyone, there was still abundant racism, and farmers who didn’t have land were still struggling. Roosevelt did a wonderful job pulling America out of the Depression, but he did not fix everything (GML pg.