From Black Thursday to The New Deals

960 Words4 Pages
On October 24, 1929, everything changed. On the day that came to be known as "Black Thursday" the prices on the stock market crashed. Investors were made nervous by the rising interest rates, and suddenly sold their shares causing prices to drop dramatically. On the following Tuesday, October 29, prices sank even further. 16 million shares were dumped on the market as investors grew panicked. This was known as the stock market crash of 1929, which was one of the many causes of the start of the Great Depression. The New Deal, enacted by President Roosevelt, was an idea that was thought that could be used to help many Americans face their hardships during this time. Our society, our people, they needed help. Franklin Delano Roosevelt was…show more content…
The Banking Act of 1933 establishes the FDIC as a temporary government corporation, gives the FDIC authority to provide deposit insurance to banks, funds the FDIC with initial loans of $289 million through the U.S. Treasury and the FRB, prohibits banks from paying interest on checking accounts and allows national banks to branch statewide, if allowed by state law. (fdic, “FDIC learning bank”). Also it prevented banks from making risky investments which caused the depression in the first place. This would prevent future bank crashes. The first New Deal was not was helpful, but to Roosevelt and the people, it was not enough. The Second New Deal was for more of a long term goal. It was just about everything the first New Deal was except the second New Deal did not include recovery nor was it all the same programs. It was passed back Congress in 1935. It was another attempt to end the depression. A program for Reform was the Social Security Act. In a broad aspect this program was to provide for the general welfare of the public. This act gave money to elderly, unemployed, and the disabled. A person did not have to keep working if unable and an elderly person did not have to feel the burden of not providing for his children and their children’s children. This helped a lot of families. The Committee on Economic Security was not sure that this should be the basis of the Act due to the reverse clause of the Constitution, also known as the
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