Peoples Money In Case Their Bank example essay topic

The Great Depression progressively got worse and then progressively got better. Coming in and out of the depression was not an over night thing, It included lots of planning and action. There were a few major causes of the Great Depression, . The United states had three consecutive conservative presidents in the 1920's Harding, Coolidge, and Hoover. They all believed in mechanization which in turn put thousands of people out of work, and the trickle down theory where the money that the rich spent was supposed to somehow make it's way though the system to the poor. The money never made it so the poor had to find some way to get money and that was through loans from the banks.

The poor had no way of making money which made it close to impossible to pay back the loans plus the interest thus, beginning the ban and loan crisis. Banks were closing rapidly because of the money loss. This led to the concentration of wealth the top two percent of the US owned sixty percent of the money and the rest of the people were poor. Mechanization caused massive over production which put the US in a strain because of it's lack of consumers. So they cut production and raised prices which was still ineffective.

With food being too expensive work, and housing was scarce the poor were forced to make housing. With a combination of mechanization, conservative presidents, concentration of the wealth because of the trickle down theory, and higher taxes on the poor, the poor worked harder and steadily got poorer. Mexican Americans got deported during the depression because they felt that they were taking all the jobs. Hoover's response to the Depression was shaped his conservative Republican ideas. He thought that the poor were lazy and that the rich became rich because they worked hard. The believed in "Big Business", and that the money would "trickle down" if the poor worked harder.

He thought that the Depression would solve itself. He thought that big business would end the depression. So that's why he didn't take actions sooner in the Depression. Hoover waited too long to take action thus, resulting in him getting blamed for the Depression Roosevelt, unlike the presidents before him took action in an attempt to end the depression. When Roosevelt took office in 1933, the country was in the middle of the Great Depression.

He came up with two New Deals. Roosevelt's first New Deal included programs such as the, PWA, , NRA, and the FDIC. The was government jobs for people. The ended the farm crisis. it paid farmers to cut production. The PWA was where the government hired people to help build roads, plant trees, build bridges, and libraries. The Bay bridge, the Golden Gate bridge In San Francisco, Coit Tower, Waterfront next to Fishermans Wharf, Aquatic Park, The old Belmont firehouse on the Peninsula, Angler's lodge in Golden Gate Park, the Alameda County Courthouse and the Oakland public library are all products of this program.

Roosevelt's program the WPA, built almost five hundred new public buildings, sponsored more than ten thousand works of art, planted over twenty thousand trees, and served over a million school lunches. The NRA helped regulate business, set up price controls, forty hour work weeks and minimum wage. The NRA Regulated wage and work hours for the workers of the PWA. The FDIC was bank insurance.

This was created to insure peoples money in case their bank closed for any reason. The bank famous bank of America survived the Depression. If banks closed down with your money in it with this insurance the government will pay you any sum of money between one thousand dollars to one hundred thousand dollars. Roosevelt had a second deal.

This deal had the SEC, The Revenue act, Banking act, and social security. The SEC regulated the stock market. The Revenue Act taxed the rich to end the concentration of wealth. The Banking act Regulated banks and made sure that they wouldn't be able too give out too many loans, close and leave with other peoples money. Social Security created a retirement fund for people over sixty five. Roosevelt's second new deal helped maintain the success of the countries long term financial success and help maintain the stability of his first new deal.