The 1920s were quite a prosperous time in America. The victory in the Great War had the entire country in high spirits. Before the war, it was usually only the rich who dabbled in stocks, but the high spirits and the recent real estate boom in Florida led many other investors into pumping their money into the market hoping to turn a profit. The successes of the few overshadowed the misfortune of many, leading to the mentality that investing in stocks was the “get rich quick” idea that seemed to work more often than not. Although the entire stock market grew overall, many people with stocks seemed to be struck with a fever of mad optimism as William Leuchtenburg states:
The volume in sales on the New York Stock Exchange leaped from 236 million …show more content…
At last, the colossal stock market finally fell over leaving many investors in debt and companies in ruins. The exact cause of the stock market crash is still debated, the mentality of the American people, along with the economic policies in the 1920’s was a catalyst for the inevitable crash. The recovery program, known as the New Deal, launched by Franklin Roosevelt helped stabilize America just long enough so that she did not collapse from the weight gained in the 20’s. Although the New Deal was not without problems and faults, it should be held in high regard because it created a massive amount of public infrastructure and managed to change the average American’s relationship with the federal …show more content…
Roosevelt knew that if this bill was unsuccessful, he would largely be blamed. Thus the Roosevelt administration’s answer to the bill was the National Industrial Recovery Act. It was a stroke of genius on Roosevelt’s part in order to save his own skin against the earlier mentioned bill. The NIRA called for federally established working hours, minimum wage, and worker’s right to organize. The act created the National Recovery Administration, an entity that Kennedy calls, “a vast process of government-sanctioned cartelization,” and the Public Works Administration whose purpose was to be the workhouse for the NRA. The goal of the PWA was to put people to work and keep them busy, much like the CCC. The PWA however, had a much larger budget, amounting to almost $3.3
The volume in sales on the New York Stock Exchange leaped from 236 million …show more content…
At last, the colossal stock market finally fell over leaving many investors in debt and companies in ruins. The exact cause of the stock market crash is still debated, the mentality of the American people, along with the economic policies in the 1920’s was a catalyst for the inevitable crash. The recovery program, known as the New Deal, launched by Franklin Roosevelt helped stabilize America just long enough so that she did not collapse from the weight gained in the 20’s. Although the New Deal was not without problems and faults, it should be held in high regard because it created a massive amount of public infrastructure and managed to change the average American’s relationship with the federal …show more content…
Roosevelt knew that if this bill was unsuccessful, he would largely be blamed. Thus the Roosevelt administration’s answer to the bill was the National Industrial Recovery Act. It was a stroke of genius on Roosevelt’s part in order to save his own skin against the earlier mentioned bill. The NIRA called for federally established working hours, minimum wage, and worker’s right to organize. The act created the National Recovery Administration, an entity that Kennedy calls, “a vast process of government-sanctioned cartelization,” and the Public Works Administration whose purpose was to be the workhouse for the NRA. The goal of the PWA was to put people to work and keep them busy, much like the CCC. The PWA however, had a much larger budget, amounting to almost $3.3