American History 1942 1982 Essay

1318 words - 5 pages

The Great Depression occurred when the U.S. stock market crashed in 1929. As a result of the crash markets throughout the world took huge downturns as well. There are three schools of thought on how the great Depression came about. The Neo- Classical line of thought was that the crash was the government and the treasuries fault. They believed that the U.S. government didn't handle the economies money right and that they were to blame for the recession. The Keynesian theory on the state of the economy was named after it's creator John M. Keynesian. In it he believed that a lack of government control on margin, over production and under consumption (assembly lines) were to blame. He advocated that the Government should enforce higher taxes in good times and lower taxes in lean times. The Post-Keynesian view on the problem was that with the losses from World War 1 there was under consumption, which was from 1/3rd of a trillion dollars and an extraordinary amount of lives lost.Franklin D. Roosevelt (1882-1945) succeeded Herbert Hoover in the office of president in 1933. Hoover had been seen as a problem fixer and went under harsh criticism over the fact he could not find a solution to the staggering economy. He was ousted from office by Franklin D. Roosevelt who quickly formed plans to try and help the U.S. Economy in the troubled times of the depression. Elected in 1932 Roosevelt implement the first of his many plans to help give relief to the American economy. The New Deal 1 was established in 1933-34 and called for numerous federal emergency relief and recovery programs. Such programs as the F.E.R.A., for Federal emergency relief, the R.F.C. "“ to help give loans to keep small businesses running over 10.5 billion from 1929-1939. The F.D.I.C "“ to restore confidence in the current banking system. Insuring your deposits up to 100,000 dollars was just one of the ways they tried to calm the dissention about the trustworthiness of most banks. By having "bank holidays" from Wednesday to Friday/Monday. The government fooled the people into thinking that they were going to check ever bank in America in a matter of days when they truly only checked/audited a select few. The C.W.A. was wisely accepted of most relief programs because people would rather take jobs and earn money than receiving handouts (taking their own personal pride into account/over F.E.R.A. help). This provided over 4 million jobs and was called the Civilian Works Act. They were given crappy jobs like construction and snow shoveling and were able to maintain their pride through the tough times. Roosevelt pushed hard to establish a thing called the National Recovery Administration. Which seeked to install wage and price controls on the U.S. economy to promote economic growth. This was declared unconstitutional and was also objected to by saying it sounded vaguely like communism. The N.R.A. was a sizable part of Roosevelt's next shot at fixing the economy when the original...

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