The Insider Depression: The New Deal And Second New Deal

805 Words 4 Pages
Once the government stopped the depression from worsening, they needed to come up with programs that would avoid another depression and restore the country. Other reason they needed to do this was because they needed to show people that it would not happen again. Many acts were put in place, like Securities and Exchange Commission and Federal Deposit Insurance Corporation. Brokers would lie and deceive to clients about the stock market, and then do inside trading together. The Securities and Exchange Commission set up agencies to monitor and ensure that the brokers are telling the truth. They also made it hard to commit fraud and or insider trading with other brokers. This act was a failure, because fraud, insider trading and lying still took …show more content…
It boosted the size of the army due to the Civil Conservation Corps or the CCC. The CCC was ran with a militaristic style; when the workers finished with the Corp, most went on to the army due to this reason. The lend-lease allowed America to start being an imperialistic country. Before The United States was an isolationist country, they did not want and foreign pressure in America. They did this by stop aiding countries, selling to them, and buying from them. The lend-lease changed this which allowed America to increase its exports due to the high foreign demand. The government increased the circulation of money by printing more money. This weakened the American dollar value, but it got more people spending more money because there was more money in their pocket. It gave people false hope, but it is what the nation needed at the time to jumpstart the economy. This helped start it, yet it did not fix the situation it only started the process that the war would fulfill and …show more content…
This halted our economy, there was very little spending and people were buying the cheapest product. The cheapest products back then, and the same now, was foreign goods. This stimulated other economies and depleted the american dollar, so we lost our purchasing power. By 1940 war had erupted in Europe, and America had numerous economic indicators that it was deep in the depression(The American Economy during World War II). In summer of 1940 unemployment was 5.3 million people. (The American People in Depression and War) Once America declared for war in december of 1941, Roosevelt main goal was to fully set up his Arsenal of Democracy. The Arsenal of Democracy was the joint effort of American industry to support the allies. The problem with this is, most American Manufacturers would not comply to these demands of the president. Roosevelt would try to accomplish this task by converting industries to a war material production industry(The American Economy during World War II). Roosevelt had help wit this from Walter Reuther, a high ranking auto union laborer advocated that auto industry convert to making aircraft(The American West Transformed: The Impact of the Second World War). This task grew to be bigger than what the President thought, so he created the War Production. Roosevelt appointed Donald Nelson to control the War Production Board. This

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