Fdic
Throughout history the United States have had problems with the economy and addressed them with new programs to stimulate the United States. Some examples of these programs are the federal deposit insurance corporation (FDIC) and the building of the transcontinental railroad.
The federal deposit insurance corporation or FDIC was founded in 1933 in response to the failure of various banks in the 1920’s and early 1930’s. The FDIC was founded after the failure of many banks due to people trying to remove all their money from their bank as a result of the great depression. This posed a problem because the banks have given out loans and did not have enough money to payout all of the money that was deposited. When everyone tried to get their money out of the banks it was a first come first serve basis and not everyone was able to get their money. When the citizens of the United States heard about this it caused panic nationwide and caused the failure of thousands of banks. The government addressed this issue by forming the FDIC and insuring any money deposited in the banks up to $2500 and later in 1934 was raised to $5000. This helped people put more trust in banks knowing that their money was insured by the government. This government program is still in effect and insures millions of banks nationwide and protects depositors for up to $250,000.
Another problem addressed by the government was the lack of a transport system from the east to the west coast. The United States adopted the theory of the manifest destiny to expand from the east to the west coast but later realized that to travel or bring supplies from coast to coast it would take five to six months and could cost over $1500. The problem with the transportation system was addressed during the California gold rush, but the building of the railroad wasn’t completed until about 10 years after. Before the transcontinental railroad was started in 1863 the easiest way to the west was the Oregon
The federal deposit insurance corporation or FDIC was founded in 1933 in response to the failure of various banks in the 1920’s and early 1930’s. The FDIC was founded after the failure of many banks due to people trying to remove all their money from their bank as a result of the great depression. This posed a problem because the banks have given out loans and did not have enough money to payout all of the money that was deposited. When everyone tried to get their money out of the banks it was a first come first serve basis and not everyone was able to get their money. When the citizens of the United States heard about this it caused panic nationwide and caused the failure of thousands of banks. The government addressed this issue by forming the FDIC and insuring any money deposited in the banks up to $2500 and later in 1934 was raised to $5000. This helped people put more trust in banks knowing that their money was insured by the government. This government program is still in effect and insures millions of banks nationwide and protects depositors for up to $250,000.
Another problem addressed by the government was the lack of a transport system from the east to the west coast. The United States adopted the theory of the manifest destiny to expand from the east to the west coast but later realized that to travel or bring supplies from coast to coast it would take five to six months and could cost over $1500. The problem with the transportation system was addressed during the California gold rush, but the building of the railroad wasn’t completed until about 10 years after. Before the transcontinental railroad was started in 1863 the easiest way to the west was the Oregon