Question

In your first paragraph discuss how the Jazzy Roaring 1920’s (the time of presidents Harding, Coolidge, and Hoover) on the surface seemed like a great time with a booming economy, but how actually there were some serious problems in this period that people did not notice would cause The Great Depression of the 1930’s. Some historians say when Franklin Delano Roosevelt came in as president in 1933 he implemented what historians call the 3 R’s of “Relief, Recovery and Reform” to solve the problem of 25% unemployment (50% in some cities and many others working on part-time or reduced wages) In your second paragraph discuss some of the temporary programs that Franklin Roosevelt implemented to help out Americans during The Great Depression. Then in your final paragraph discuss some of the permanent programs (reforms) that Franklin Roosevelt implemented that we still live with today.

Answer 1

The economy was booming in 1920's as the industrial production was quite high, as Europe's industrial capacity was destroyed because of the war. However, there were some serious problems in the 1920's with increased speculative behavior as more and more investors sought credit and invested in the stock market. New innovative techniques emerged in terms of investing in such financial stocks where investors only had to provide 10%-20% value of the stock. This caused increased speculative behavior and stock markets ultimately plunged and wiped out the wealth. Banking industry was booming but at the same time there were fictitious reserves held, and people sought more credit which reduced the capability of banks and consumers to be financially stable.

Some of the temporary programs that Franklin Roosevelt implemented were based on providing work to the unskilled workforce. There was a boost given to agricultural prices, relief was given to states so that states could get federal grants and industry by industry prices and wages were setup. Workers were given the right to form unions so as to bargain for wages.

This is how the welfare mechanism came into place and some of the permanent programs were implemented with the idea of federal aid being given to poor children / dependent and the elderly. Banking practices became more stringent and established norms for banking which were newly reformed were kept in to bring about stability in the banking system. Securities and Exchange commission remained in place to protect the public interests. Federal Deposit Insurance Corporation was also formed so as to enhance the financial stability. Social security Act and Labor standards were set into place, which reformed the future trajectory.