Changes Of The American Economy In The 1930's
The American economy and its culture changed dramatically during the 1920’s and 1930’s due to many factors, including the Great Depression. The Depression itself, among other elements such as consumerism, national debt overload and the 1930 Banking Crisis all played an invaluable part in the change and sheds light on how America’s economy is run today. The first of these changes after the Depression was the New Deal.
In the 1920’s, American banks were privately run, with the money from their clients inducted into the stock market in order to ensure that it continued to run smoothly; this was done without the knowledge of customers. American workers overused credit, which was a form of debt that could be paid monthly. The buy first, pay later …show more content…
During his first 100 days, he implemented 15 new Acts and Executive orders that he called ‘The New Deal’. While putting a heavy emphasis on putting banks back into business, this New Deal was also structured to get American workers back on their feet and give them jobs through various administrative systems. Among these systems were: the Federal Emergency Relief Administration (FERA), Civilian Conservation Corps (CCC) Agricultural Adjustment Administration (AAA) and the National Industry Recovery Act (NIRA). FDR used these new administrative organizations to ensure that the American economy was staying in an upward movement. He started broadcasting daily radio addresses to weary Americans, known as Fireside Chats, letting them know what had been done that day, what those things had accomplished, and what was going to be done the next day. In 1933, FDR began regulating banks with the FDIC (Federal Deposit Insurance Corporation). This administrative measure allowed for better management of the banking system through a “banking holiday”, a three-day hiatus for banks nationwide so that they would be able to be refunded without interference from the outside (i.e., people trying to withdraw money in large amounts). This further stabilized the banking system and added another preventative measure so that nothing like the Great Depression would ever happen again. 2 long years later, in 1935, did banks began their slow, but steady rise back to regular working order once these precautions were put into
In the 1920’s, American banks were privately run, with the money from their clients inducted into the stock market in order to ensure that it continued to run smoothly; this was done without the knowledge of customers. American workers overused credit, which was a form of debt that could be paid monthly. The buy first, pay later …show more content…
During his first 100 days, he implemented 15 new Acts and Executive orders that he called ‘The New Deal’. While putting a heavy emphasis on putting banks back into business, this New Deal was also structured to get American workers back on their feet and give them jobs through various administrative systems. Among these systems were: the Federal Emergency Relief Administration (FERA), Civilian Conservation Corps (CCC) Agricultural Adjustment Administration (AAA) and the National Industry Recovery Act (NIRA). FDR used these new administrative organizations to ensure that the American economy was staying in an upward movement. He started broadcasting daily radio addresses to weary Americans, known as Fireside Chats, letting them know what had been done that day, what those things had accomplished, and what was going to be done the next day. In 1933, FDR began regulating banks with the FDIC (Federal Deposit Insurance Corporation). This administrative measure allowed for better management of the banking system through a “banking holiday”, a three-day hiatus for banks nationwide so that they would be able to be refunded without interference from the outside (i.e., people trying to withdraw money in large amounts). This further stabilized the banking system and added another preventative measure so that nothing like the Great Depression would ever happen again. 2 long years later, in 1935, did banks began their slow, but steady rise back to regular working order once these precautions were put into