Objectives Of The New Deal

Objectives Of The New Deal
The New Deal In 1929 the United States and the rest of the world were beginning to deal with the
Great Depression. During these hard times, many people believed that the federal government
should have a larger role in the economy. These beliefs led to the election of Franklin D. Roosevelt.
In President Roosevelts inaugural speech, (1933) he first used the great phrase, "...the only thing we
have to fear is fear itself..." He needed to strengthen our nation and boost the confidence of the
citizens. It is because of these realities that Franklin D. Roosevelt and his advisors created The New
Deal.
Key Objectives of The New Deal The New Deal was made up of three main objectives. These
objectives were relief, recovery, and reform. As a country, we needed relief and recovery from the
great depression. Unemployment was through the roof, farmers were struggling to succeed, and our
economy was in shambles. Agencies and programs were created to help alleviate these problems and
create jobs. Agencies were also created to reform industry and banking practices that had a large
hand on our path to The Great Depression.
Civilian Conservation Corps (CCC) A great example of one of the relief programs would be the
Civilian Conservation Corps. The idea was to take young men and provide them jobs in forests,
infrastructure, and other public projects. This not only provided work for the young men and their
families, but also helped us rejuvenate our natural landscape. The Civilian
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Why The Roaring 20s?
This essay will review the following: assessing the argument on why the roaring 20s was a reaction
to the first world war, who/what is to blame for the great depression, who had a more difficult
experience: farmers or city people, how effective the responses of the Roosevelt Administration to
the great depression and how that changed the role of the federal government, as well as why the
general publics thought of the 1920s being a good time is inaccurate. In a way the roaring 20s is a
reaction to the first world war, during the roaring 20s the political systems had been changing,
during the war alcohol was needed for soldiers use but at the end of this war a band had been set on
alcohol use seeing as there was no real need for it anymore. Also new technological uses started
thanks to the first war. During world war one Germany had many new secret weapons like airplanes
used to see the battlefield from above and tanks which helped during the trench warfare and gases
and while the roaring 20s did not exactly use things like that it did create new things like the model–
t and model–a ford cars. Before the war the public had voted for Wilson as president because of his
promise to keep the people out of the war (isolationism) but during the end we had entered anyways
and once the war had ended the public decided they did not want that to happen again so during the
next election people had voted for Harding because he promised to bring back normalcy and was not
Wilson

The Decline Of The Great Depression
The Western Industrial world was in one of the deepest and darkest times during the Great
Depression. The Great Depression had started in the year of 1929 and lasted ten years, where it
finally ended in the year 1939. This time had all started when the stock market had crashed in the
year of 1929. When this occurred everyone started to panic because they knew that the investments
and spending would decline tremendously. As these companies were taking hits they started to lay
off their employees and then there was a rise in unemployment. By 1933, they had stated that
anywhere from 13 to 15 millions of people were unemployed. The crash of the stock market had
occurred because consumers were not spending near enough on products. So the products are
becoming unuseful and they are just collecting dust. As consumers were not spending, the stock
prices kept jumping up which then caused the bubble to burst and crash. On October 24, 1929 is
when 12.9 million shares were traded and this is known as black Thursday. Five days later on Black
Tuesday another 16 million shares were sold. During that time if you had purchase stock on margin
you would receive anything. After the crash, people were having to live off what little income they
had and start paying purchases by check and card. The Great Depression ended up spreading to
other countries beside the United States. Herbert Hoover and his administration had made a mistake
by telling them that this just need to run its

The Banking Industry And The Federal Deposit Insurance...
The banking industry consists of almost sixty–five hundred banks that are insured by the Federal
Deposit Insurance Corporation (FDIC). Out of these, there are eighty–one substantially large banks
in the United States that are publically traded, which is where the market structure and industry
information will be based. However, as with the rest of the country, these banks are very
concentrated, with the largest banks accounting for over half of the market as well as accounting for
the largest amounts of revenue.
The largest six publically traded banks in the United States who are FDIC insured account for
seventy–eight percent of the market, while the top four account for sixty–eight percent of the
market. These top six banks include: Wells Fargo and Company, JPMorgan Chase and Company,
Bank of American, Citigroup, US Bancorp, and PNC Financial Services. Wells Fargo, the market
share leader, holds over twenty–percent of the market with JPMorgan Chase falling just under
twenty percent (Oja, 2015). The top four banks as listed above, accounted for almost half of the
revenue, at nearly two hundred and eighteen billion dollars. The top eight banks, of the eighty–one,
managed an astonishing seventy–five percent of the total revenue for all banks (Oja, 2015). These
other two banks were Branch Banking and Trust Corporation (BB&T) and SunTrust Banks and the
total revenue in 2014 were at four hundred and forty–three billion dollars. Specifically, as of 2014,
JPMorgan Chase

The Effect Of The Great Depression Essay
There is much debate as to what caused the Great Depression. There was certainly the short–term
trigger of the Stock Market Crash of 1929, but there are also long–term causes that manifested itself
during the 1920's. Whether it is the shift from coal to electricity that negatively affected those
invested with the old technology, or a shift more to trucks and cars to transport goods instead of
railroads, or perhaps that farmers were losing their farms because over over–investment during the
late 1910's, many factors can be identified as a cause. But we can also look at the consumer as one
of the root causes, as well. Consumer behavior contributed heavily to causing both the stock market
crash and the Great Depression.
Consumerism and its accompanying advertising exacerbated the conditions that led to the Great
Depression. First, consumers spent a lot of their income on new products and they were persuaded
to do so through advertising. The 1920's brought about changes in American culture, like music,
sports and literature. But in addition to those, cultural attitudes toward women also began to shift.
The double standard that had plagued women was now being lifted and that opened up an entirely
new market for businesses (Payne, 33). The advertising industry expanded their targets and utilized
what they learned during World War I (from Creel's Committee for Public Information) in how to
not only let customers know what products exist, but to entice and persuade

The Pros And Cons Of The New Deal
The Great Depression was a very difficult time in America's history, especially because of the
increased rates of unemployment, bank failures, and business failures. The New Deal allowed the
government to create new programs that either provided relief or recovery, or were a reform for the
problems during that time. In the time of an economic crisis, the government should get involved
and provide a safety net for Americans. Government involvement is necessary to work towards a
resolution, but too much involvement will put too much power in the Government's hands, which
could lead to a government type we do not want in America. During economic busts, the
government should use the programs that are currently in place to provide a safety net and support
Americans. However, during economic booms Americans should provide for themselves and not be
reliant on the government to provide for them.
At times of economic busts, especially, reforms help to provide that safety net that Americans need
to get through the onerous times. One of the reforms created through the New Deal that still exists
today is Social Security. Social Security was established through the Social Security Act of 1935 by
Franklin D. Roosevelt. "The bill became law on August 15, 1935 and established an unemployment
insurance system, a national pension fund, benefits for victims of industrial accidents, and a public
assistance program for dependent mothers and disabled people (Social Security Act of 1935)." This

Franklin D. Roosevelt was one of the most amazing men in...
Franklin D. Roosevelt was one of the most amazing men in U.S. history. FDR was the only
president to run for four terms. He had a wife kids and a mother who he lived with he was also the
only president who was paralyzed from the waist down. He was elected president in November 1932
for his first four year term. In the first 100 days of his presidency would become his most famous
ones. During the first 100 days he created a alphabet soup of government agencies such as the CCC,
the WPA, and the NRA. Most of these agencies were a success but some were a big fail. During this
time period he also gained very much respect from congress and the Republican party, making him a
very strong President. He always had a policy and it was that, "if ... Show more content on
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So everyone loved Roosevelt. He was the first president that the people felt cared about them. When
FDR's CCC was formed many people apposed it because it cost lot of money that the country did
not have. Although it turned out to be an amazing success and one of the most affective plans FDR
had. The CCC started out small but grew very rapidly more men were joining even though it only
paid a dollar a day. It became a popular thing for young men in the great depression. The CCC was
only part of a plan that FDR made called the New Deal . The New Deal consisted of the FDIC, the
NIRA, the TVA, and the WPA. First to talk about is the FDIC. FDIC stands for the Federal Deposit
Insurance Corporation. T FDIC's job was that if a bank failed the government would pay the people
that used that bank their money back if the bank failed for some reason. This agency still operates
today. Next is the AAA. The AAA stands for Agricultural Adjustment Association. What this agency
did was buy land from farmers so the government could fix it up and sell it back. This did not work
it was one of the new deal's epic fails.
Finally is the NIRA. The NIRA stands for the National Industrial Recovery Act. The NIRA was a
success at the beginning of the depression but as the depression went on it started to prove irrelevant
to the real solution. Next is the TVA. The TVA stands for Tennessee Valley Authority. The TVA
helped bring power to TN and it surrounding states

From Black Thursday to The New Deals
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 on
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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

Regulation of Banking and Financial Services Essay
Regulation of Banking and Financial Services
The Failure Process Imposed Upon Financial Institutions
The concept of systemic risk sprung to the foreground of the public's consciousness during the
financial crisis of 2007–8 as the Too Big To Fail (TBTF) banks were bailed out by the various US
Federal Government agencies e.g., US Treasury via the Troubled Asset Relief Program (TARP) and
the US Federal Reserve via Quantitative Easing (QE). However, as it turns out, the concept of
systemic risk is not so easy to define in legal terms–as illustrated by the difficulty in nailing down
the definition by US Congress via the Dodd–Frank legislation or by the US Treasury and the Federal
Deposit Insurance Corporation (FDIC) via regulation (Horton, ... Show more content on
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With a deposit payoff, the bank's depositors are paid by the FDIC up to the $250,000 FDIC
insurance limit with any deposit balance above this limit repaid based on the residual value of the
bank's assets; with a purchase and assumption, a healthy bank purchases some or all of the failed
bank's assets and deposits (Rose & Hudgins, 2013). The goal of the FDIC in resolving the failure of
a bank or systemically important non–bank financial institution is to maximize the value of the
failed institution's assets while minimizing the damage to the broader financial system (Guynn,
2012).
In conclusion, because of the 2007–8 financial crisis and the resulting Dodd–Frank legislation the
era of the TBTF bank and non–bank financial institution is over. The FDIC now has the regulatory
authority to liquidate these [formerly] TBTF bank and non–bank financial institutions in an orderly
manner. The ultimate goal of the FDIC's new regulatory powers is to protect the taxpayer from
another bailout.
Restrictions on Geographic Expansion by Financial Institutions
Restrictions on the geographic expansion, aka branching, by bank and non–bank financial
institutions in the US has a relatively long history of debate with proponents and opponents of
branching posing roughly the same arguments for the duration of the debate (Hendrickson, 2010).
The arguments for branching include–that restricting branching (a) limits diversity of deposits and
loans; (b)

Women's Role Of Women During The Great Depression
The Great Depression transformed American society and the way people thought about themselves
and their relationship to the country. During this horrendous time period, many people lost many
important pieces in their lives like money and jobs. Millions of families lost their savings as many
banks collapsed in the early 1930s. They were unable to make rent payments or mortgage and many
were removed from their apartments. The Great Depression challenged American families in vital
ways, placing great economic demands upon families and their members. During the Great
Depression, families began to slowly die they were unable to survive due to the unemployment rate.
Once the father of the family lost his job it would be very hard to come back from that. In the 1930s,
men were expected to be the breadwinners of their families. These unemployed men felt like failures
because of their inability to provide for their families. Men were very emotional about losing their
jobs and it would lead to fights between the husband and wife. It was very common that a man
would leave the family and the wife would be stranded with children. This is where the women
really show their significance and step up as a person. Women saw their roles in the household
enhanced as they juggled to make ends meet (Ware). They had to find jobs to support their children
and provide them with food along with a roof over their heads. Some worked as teachers or nurses,
anything that could bring money into their

The Great Depression Essay
The Great Depression
The great depression hit the nation quite hard with an un–comparable feeling of instability and
weakness. The United States and other nations including Europe and Great Britain were quickly
affected. The depression, caused by the fall of the stock market in 1929, caused many individuals to
panic and the depression was everywhere by 1932. Many people were affected by the depression.
Investors, the ordinary work force and consumers sank rapidly with the panic that spread across the
world. The United States tried to gain security through several attempts at restoration. With the help
of president Roosevelt and his attempt to restore security with The New Deal the nation would ...
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Their attitude towards the economic downfall and the depression settling in was approached wrong
in all ways. The only hope the U.S. would gain was the idea brought on by President Franklin
Roosevelt.
After Roosevelt?s election in 1932 he approached the situation with a brighter solution, and what
would be known to the world as The New Deal. When all the sources of government had hopelessly
failed many followed Roosevelt without an ounce of reluctance. Over twenty–five percent of the
workforce was unemployed when he was elected. His first action was to reopen the banks across the
nation and he did this by depositing savings guaranteed by the Federal Deposit Insurance
Corporation. He issued the Federal Emergency Relief Act, which replenished the funds used by
cities and states.
The New Deal approached the nation with a strong backbone and gave the suffering individuals the
support they needed and the stability to turn to. Roosevelt supplied these theories and backed them
with acts and limits to many areas of the hurt economy. The Agricultural Adjustment Act paid
farmers and limited the amount of production. The Civilian Conservation Corps hired many
individuals and put them to work on improving the environment and also the community. The
National Recovery Administration established codes of fair competition to limit competition and this
in turn set the standards for many businesses to be

The Pros And Cons Of The Financial Crisis
After the Great Depression, the financial industry was strictly controled and the United States didn't
have any financial crisis for 40 years of economic development. Most banks of U.S. were worked
locally and all were baned to use the depositors' saving for speculating. In addition, the investment
banks which held bond and stock, were strictly regulated in small or private partnerships. The
change was started in 1982 when the U.S. President Ronald Reagan allowed the banks take the
depositors' money to provide for risky investments. Therefore, in late of 1980s, a lot of savings and
loan companies had gone to bankrupt and this crisis expensed taxpayers 124 billion dollars, and
many people lost their savings as a result. After that, under Clinton ... Show more content on
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The government are probable to intervene banks which are called TBTF, it can figure out the
problem immediately but the long term systemic risk will be increased. The reason is when banks
are called TBTF the investors and creditors have less reason to analyze banks, and the banks'
managements have more effort to take risks. Governments tried to mitigate this element of moral
hazard by being consciously unclear about which banks they would save from danger and on what
terms, but the recent rescues obliterated this uncertainly, and everyone now believes that any large
financial institution–bank or nonbank–will not be allowed to fail in the way nonfinancial companies

The Dictionary Of Banking And Finance
Summary:
The Dictionary of Banking and Finance characterizes "Investment Banking" as a term utilized as a
part of the US to mean a bank, which bargains with the guaranteeing of new issues and prompts
partnerships on their budgetary undertakings. The proportionate term in UK for such capacity is
"Issue House". A more extensive definition is given by Bloomberg, which characterizes a
speculation bank as a budgetary go–between that performs a mixed bag of administrations
incorporating supporting in the offer of securities, encouraging mergers and other corporate
rearrangements, going about as specialists to both individual and institutional customers and
exchanging for its own record. Speculation Banking has developed to include a critical place in the
field of money related administrations in India in the changed period.
This field of money related administrations could turn out to be more imperative in the years to
come. The always expanding modernity and developing of the monetary markets from one
viewpoint, and the quick changing corporate scene from a defensive foundation to a globalized
commercial center on the other, would prompt more unpredictable corporate exchanges and hence,
the part of speculation financiers as exchange specialists and consultants would get to be essential.
There is the most extreme need as of right now of time for composed learning of this field of money
related movement through an efficient methodology in view of reasonable clarity. At the same

Roosevelt a Liberal and Hoover a Conservative Essay
Roosevelt a Liberal and Hoover a Conservative
Thesis: Because the Great Depression quickly changed America's view of liberalism, Roosevelt can
be considered a liberal and Hoover a conservative, despite occasionally supporting similar policies.
Written for the Advanced Placement U.S. History Document Based Question from the A.P. test.
Hoover
The political shifts in American history during the last two centuries are often explained by Arthur
Schlesinger's cyclical explanation of eras of public purpose followed by private interest. What is
considered liberal versus what is considered conservative shifts in a similar pattern. While laissez–
faire policies are considered liberal in the Roaring 20's, the onset of the Great Depression in ... Show
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This lack of complete dedication to private interest or public purpose is further displayed in
Documents B and C where Hoover stresses the importance of the individual in ending the
Depression while also assuring government support for job production if the situation required it.
Hoover's speeches are remarkably similar to Roosevelt's speech in Document E. Here, even during
the Depression, Roosevelt stressed the importance of balancing the budget unless unemployment
required the government to spend money stimulating the economy. Instead of Hoover's desire to
continue restricting government, Roosevelt wanted to balance the budget. The Depression created
the need for government intervention and an unbalanced budget as shown in Document F. However,
despite a few efforts by Hoover to create jobs, he still seemed much different than Roosevelt who
insisted in 1936 that America must not go back to supporting Conservatives who protected private
interest unjustly. (Document G)
Hoover started creating jobs when the Depression caused Americans to demand public purpose
reform, but the public still quickly characterized him as a conservative despite passing some, now
considered, liberal legislation. At first Hoover stubbornly held to his belief that government could
not and should not try to end the Depression as shown in Document B. In 1930, Hoover remained
conservative. He rarely intervened in the economy and

Glass Steagall Act For Banks And Securities
Glass–Steagall Act for Banks and Securities
The banking and securities industries had regulations since the 1930s or earlier. The laws were there
to help regulate and give depositors some security. For one reason or another, the law has been
changed, updated or appealed. The Banking Act of 1933, known as the Glass–Steagall Act named
after the Congressional sponsors: Senator Carter Glass, a former Treasury Secretary and Senator
Henry Steagall (Heakal). The Glass–Steagall Act foresaw problems with banks over lending
becoming involved in securities. The Federal Deposit Insurance Corporation (FDIC) came out of
The Act of 1933 (Stammers). The Federal Deposit Insurance Corporation (FDIC) wanted banks held
accountable to depositors and the federal government for their actions. The major part of this act
was to keep banks and securities separate until 1999 Gramm–Leach–Biley Act (GLBA) (Heakal).
The GLBA allowed banking and securities to mingle and compete in domestic and international
markets.
Glass, known as the founder for the Federal Reserve System (FRS), saw early on that security
banking and commercial banking needed to be separate; he worried about speculative banking and
over lending. Even though critics of the Glass – Steagall Act did not want to see Glass– Steagall Act
to pass. The Glass– Steagall Act in the House passed with a vote of 262–19 (Congress). The two
major points of The Glass–Steagall Act most had wanted to repeal saved more than 5,000 banks
during the

The Federal Deposit Insurance Corporation (FDIC)
The Federal Deposit Insurance Corporation (FDIC) is based in the United States and is run by the
government. The banking Act of 1933, als known as the Glass–Steagall Act, led to its establishment
due to the Great Depression that had been experienced in United States. This act came into play due
to the Great Depression. During this time, people were withdrawing their money from the banks and
keeping it at home. People were not feeling very confident about the banking system. So, President
Franklin Roosevelt had to step in and do something. The day after President Roosevelt's
inauguration, he declared a four–day banking holiday that shut down the banking system, which
included the Federal Reserve. Several days later, the Emergency Banking

The Collapse Of A Federal Deposit Insurance Corporation
In 2008 the world faced the worst financial crisis since the great depression. Many banks closed
their doors for good that year. Among them were both small and large banks. One specific bank that
collapsed that year was IndyMac, one of the largest banks in the United States. IndyMac marked the
largest collapse of a Federal Deposit Insurance Corporation (FDIC) insured institution since 1984,
when Continental Illinois, which had $40 billion in assets, failed, according to FDIC records ("The
Fall of IndyMac 2008). This paper will talk about the cause of the collapse of IndyMac in 2008, the
handling of the issues, as well as the aftermath of the collapse. IndyMac opened its doors in 1985
but was originally called Countrywide Mortgage Investment created by David Loeb and Angelo
Mozilo. It was built to collect Countrywide Financial loans that were too large to be sold to Fannie
Mae or Freddie Mac. IndyMac Bank was the largest savings and loan association in the Los Angeles
area and the seventh largest mortgage originator in the United States ("Too Good to Be True: The
Fall of IndyMac", 2008). In 1999, IndyMac loaned out record amounts. In the first quarter alone
IndyMac loaned out $1.6 billion. In July of 2000, IndyMac became IndyMac Bank when it acquired
SGV Bancorp. The total purchase cost was $62.5 million and it made IndyMac Bank the ninth
largest bank at the time. IndyMac was also the 28th biggest lender in the country. In 2004, IndyMac
expanded by buying a company called

The Tragedy Of The Great Depression
Ponder this; most beloved heroes appear on the scene after a low point, often a major one, in the plot
line. Moses from the Bible times comes in to lead the Israelites out of bondage in Egypt to the
Promised Land. Percy Jackson is greeted with an impending war of the Greek gods. Right as the
White Witch is gaining ground, Aslan comes in and roars. Just look at the recent movie "Inside
Out"; Sadness makes the way for Joy. The audience does not mind the grey and the gloom as long as
they know a dashing hero will appear shortly after the lowest of low points to make us all forget life
was rotten before. Such is the case with politics. We hunger for heroes. One of the lowest points in
United States' history was the Great Depression. One fourth of the American workforce was
unemployed. Railroads were finished being built, leaving the American population with an excess of
immigrants and other laborers for which there were no longer jobs. It was about time for a hero; this
was when Franklin D. Roosevelt arrived at the scene. FDR was a natural at politics; he empathized
with hurting Americans and lead the American people into years of recovery.
Franklin D. Roosevelt was the only child of a wealthy family who raised him to look out for the
poor and those less fortunate than himself. Although FDR attended Harvard, he did not excel in
academics but was more interested in his social life which was apparent in is "C" average in college.
He shares the surname of another one of the U.S.

Why The 1930-1940's Was The Greatest Generation
Some might say that the 1930's and 1940's was the greatest generation. The 1930's started with the
Great Depression the greatest economic disaster in modern history. This generation had to deal with
great sacrifice. The stock market crashed and people were forced out of their homes, lost businesses,
lost their jobs, and had no help from the government. People that had left the farmlands to move to
the cities for employment found themselves returning to the farm to feed their families. People that
were forced to leave their homes moved into parks and abandoned lands to set–up what was called
Hooverville's (Foner 2014). The bank's collapse was not the only reason for the great depression the
country lost over 26,000 businesses and those businesses that were left had to lay–off workers. With
all of these people out of work no one was spending, so the lost revenue just continued to reduce the
need for companies to produce products. People blamed themselves and then the government.
President Herbert Hoover's response was uncaring and not adequate to support the American people.
President Hoover's advisers said that there was no need for the federal ... Show more content on
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The government stepped in and bailed out the banks for making poor decision and providing home
loans to individuals who could not afford those loans. The government also bailed out large vehicle
business like Ford and Chrysler that would not change their business modern to keep up with
foreign vehicle companies that could produce low efficiency vehicle at a lower price. America had
outsourced most of the manufacturing jobs and we no longer had the ability to fully employ our own
workforce. Businesses could operate in foreign counties and make a profit. The hard–working
American workers were pushed aside, because the company could make more profit by operating
overseas and utilizing foreign

Federal Deposit Insurance System
Many nations have implemented deposit insurance for the protection of the depositors from losses
that result from the inability of a bank to meet its debts. As an element of safety net in the banking
system, deposit insurance is meant to increase financial stability. A Deposit Insurance system (DIS)
main objective is to make sure that that firms and households do not loose savings as well as
deposits they hold in banks in case of bank insolvency (Fdic.gov, 2014). It creates some confidence
within the financial system and promotes favorable services by banks. Therefore, DIS is not meant
just for the protection of depositors in a single bank but also ensure overall financial stability.
Borrowed money is increasing becoming the main source ... Show more content on Helpwriting.net
...
In the 1930s, there were major troubles in financial markets in the US and the 1929 crash led to the
closure of 900 banks and contributed to economic depression. Depositors lost confidence in the
banking system and in 1934, deposit insurance coverage was established (Fdic.gov, 1998). There
was increase lending during the 1933–1983 periods and due to increased nontraditional risks in
banks in the 1960s, another bank crisis emerged. Due to high–interest rates and inflation, there were
post–World War II bank failures and the FDIC had to meet depositors' claims due to bank failures.
In 1988, there were 200 insured banks that failed hence the FDIC lost money too but in the early
1990s, insurance premiums were raised from 12 cents to 23 cents per $100 deposits. Further reforms
in the early 2000s include raising deposit insurance to $250,000 per depositor while banks would be
required to meet premium payments in advance (Fdic.gov, 2014). Large and riskier banks would
also pay higher premiums. The 2008 financial crisis battered the system as bank failures increased

The Pros And Cons Of Federal Deposit Insurance
The Federal Deposit Insurance Corporation (FDIC) safeguards and promotes confidence in the
United States financial system by insuring deposits in banks, identifying, examining, and addressing
risks, and by limiting the effect on the economy and the financial system when a bank fails. An
independent agency of the federal government, the FDIC was formed in response to bank failures
that happened in the 1920s and 1930s. The FDIC employs more than 7,000 people and is
headquartered in Washington, D.C., but conducts most of its business in six regional offices, and in
offices around the country. The FDIC is managed by a Board of Directors; five individuals
appointed by the President and confirmed by the Senate, with no more than three being from ...
Before FDIC, there was no guarantee beyond the bank's own stability. This meant that only those
who were first to withdraw their money from a troubled bank would get it; those who waited stood
the risk of losing their life savings overnight. As fear of bank closures started to spread, a small
trickle of worried customers looking to withdraw money would soon turn into a stampede until the
bank was unable to meet the withdrawal

Federal Deposit Insurance Corporation (FDIC)
Bridgewater Bank was founded in November 2015 by Jerry Baack. It is a community bank
established in Bloomington, Minnesota. The headquarter building is the same location as the first
branch. According to North Western financial review, Bridgewater Bank merged and acquainted
First National Bank of the Lakes in Orono, Minnesota. Currently, all four branches are located in
Minnesota. Although this bank is Non–member of the Federal Reserve System, it is regulated by the
Federal Deposit Insurance Corporation (FDIC). The main function of FDIC is to provide a
maximum amount of $250,000 insurance coverage for each deposit account. The bank's total asset is
about $ 925 million as of December 31, 2015. The bank has a variety of services, including

The Federal Government Has Changed Over Time
The federal government role in America from the late 1800s during Reconstruction, up to the early
1900s during the Great Depression, often expanded and contracted in response to the demands of the
American public. During this time frame, the nation underwent major changes and faced many
challenges in order to get where we are today. As a country, our priorities shifted from being
concerned about encounters right in front of us, to encouraging and pursuing a better future for
everyone. After years of hard work and dedication, with the help of the federal government, our
nation was finally focused on a greater life for all people. Therefore, without both the high and low
points of the federal government throughout this period, we would not reside in the homeland we
have today. To conclude, the role of federal government has changed over time in many ways,
including but not limited to: protecting rights, promoting economic development, encouraging
expansion, and providing financial support. During the time of Reconstruction, the federal
government did little to help the people of America as a whole, they concentrated on bettering
African American lives and "reconstructing" the South. The focus during this time period was to
protect the rights of African Americans, which had long and hard been fought for. The federal
government made it their priority to ensure equal rights among all black people. Also, the
readmission of the Confederate states was essential to the federal

Effects Of The Great Depression On Society
American may remember horror stories of the effect the Great Depression had on society. Although
devastating it was not the first time workers had the task to endure the financial difficulties of an
impending recession. The Panic of 1792, where two situations occurred almost simultaneously
which produced the first financial crisis. This was the first time which Americans experienced a
bank run when US securities and bank stock prices started to increase. During the Revolutionary
war I, the US Government assumed the financial obligations of two states being South Carolina and
Massachusetts, which incurred a debt of $65 million owned, due to the war. Amidst bankruptcies,
default mortgage loans and a decline in lendable money, the economy was at a staggering halt.
William Duer and Alexander Macomb used inside information from the treasury; which Duer was
previously employed, hoping that the stock value would increase. William Duer invested in the fall
of the stocks and invested Macomb money with hopes the stock market would rise. Duer either way
would make a large profit. Duer plans were intervened when the Livingston family going to use
tried to reduce the price of the New York stock with hopes to purchase securities to fund a bank that
would monopolize the stock from the Bank of New York. There was loan in place to assist American
wish to develop industrial and commercial use but little funding or support for farmer; they had the
opportunity for loans. The loans was

Personal Narrative: The New America
The New America
I didn't believe in aliens until I was abducted by them. I was put in some kind of contraption and I'm
not sure what happened exactly, but it's clear that I'm not where I was. Everything in 2016 is
different, I don't know if I'm in a different state or not but people are dressing differently and acting
differently, and the cars, the cars are all different! I've been here for quite some time now and have
noticed a lot of differences from where I lived in Oceanside, California in 1940. I've been
transported to the year 2016 and there are so many things that have changed and evolved and among
them are political, economic, social, and cultural changes.
Economically the country is completely different from what I left in 1940. ... Show more content on
Helpwriting.net ...
We were all enjoying the fruit being produced my President Roosevelts New Deal and we heard
from the first lady often. Our president believed in federal relief, public works, social security and
unemployment insurance. He wanted our country to believe in banks again and he wanted to
government to have more control over the economy. President Roosevelt created things like the
FDIC and encouraged us all to put our money back in the banks and that it would be safe. The CCC
(Civilian Conservation Corps) saw young men put to work in rural areas and employed over
250,000 men in its first two months. We saw the HOLC (Home Owners Loan Corporation) which
rescued people from foreclosing on their homes, and eventually the Federal Housing authority
which established 30 year loans. The AAA (Agriculture Adjustment Act) provided 4.5 million
dollars in relief to farmers and also paid southern farmers to reduce production which would help
drive up the price for their particular product. The Social Security Act provided retirement for
everyone who was retired and over the age of 65. A negative for the President was the Supreme
Court Packing plan where President Roosevelt attempted in increase the amount of justices ensuring
all of them supported his views. In 2016 politics has been shaped by who our next president would
be, Donald Trump or Hillary Clinton. For only the fifth time in our nation's history we

The History And Future Of The Federal Deposit Insurance...
Introduction Government departments are instrumental to a flourishing and secure economy. They
are in place to serve their constituents and ought to keep that in mind. The Federal Deposit
Insurance Corporation (FDIC) fits this well and is in place to ensure that bank users are protected in
instances of economic downturn and that their money is insured. In this way, regulation is extremely
necessary to ensure a stable economy in instances of financial instability. To completely understand
the FDIC, it is important to understand why and how it was created, its history, major
responsibilities and who the leaders are.
FDIC Creation and History
After the Stock Market Crash of 1929, Americans immediately withdrew their money from banks, ...
There was no federal legislation that forced banks to be insured, but some states required it. In 2007,
the mortgage market problems caused the greatest financial crisis since the Great Depression. In
similar fashion, many banks failed. This again caused depositors to withdraw their money from
banks and the FDIC stripped Washington Mutual Bank of its banking subsidiary. By 2011, President
Obama issued the Dodd–Frank Wall Street Reform and Consumer Protection Act to raise the FDIC
deposit insurance to $250,000 per account (History.com Staff, 2017).
Major Responsibilities The main role of the FDIC is to prevent the ridiculous withdrawals that
occurred during the Great Depression and the Great Recession. Prior to the FDIC, there was no form
of insurance for banks and no "money back guarantee" besides the bank's stability. Since almost all
banks are FDIC insured, customers have no need to panic even if the bank starts to fail because the
FDIC will cover up to $250,000 per account, which is sufficient for most customers. With this, there
should be no more panicking withdrawals and banks should, hopefully, be able to solve their
problems in a more controlled environment. The FDIC covers money market accounts, savings
accounts, checking accounts and Certificates of Deposit (CDs). It also covers some trust and
Individual Retirement Accounts, but only

Causes Of The New Deal
Millions of innocent American citizens suffered extreme circumstances that resulted in the worst
economic downfall known as the Great Depression. In response to this economic downfall, the New
Deal flourished. The New Deal, by definition, was a series of federal programs, federal work
projects, and financial regulations appointed by the president at the time, Franklin D. Roosevelt.
Before these countless rules and regulations, the lives of American citizens were deemed hopeless
due to homelessness and unemployment. Because of how poor they were, many struggled to survive
and died of starvation. Jobs were extremely hard to find and even harder to keep; businesses were
constantly letting go of employees due to the inability to supply them with wages in return for labor.
Plenty of men turned to alcoholism, spending their days drunk and unaware of their situations.
Mothers were left to try and keep their children alive all alone. Unemployment was one of the worst
outcomes of the Great Depression. When the New Deal came around, however, things began to
change. Roosevelt wanted to reform, relieve, and recover America to its' former glory. The New
Deal greatly improved the lives of Americans by increasing their trust with the government through
the FDIC, starting the FireSide Chat Radio Address (Document B), and creating the "Social Security
Legislation"(Document C).
The FDIC (Federal Deposit Insurance Corporation) was one of the most successful programs
created after the Great

Financial Crisis : Evidence From Bank Lending And Leverage...
"CEO Overconﬁdence and ﬁnancial crisis: Evidence from bank lending and leverage" by Po–Hsin
Ho, Chia–Wei Huang, Chih–Yung Lin, Ju–Fang Yen
This journal article is authored by Po–Hin Ho of National Taipei University; Chia–wei Huang and
CHih–Yung Lin, associate professor of finance at Yuan Ze University; and Ju–Fang Yen of the
department of statistics at national Taipei University. The article was published recently in the
journal of financial Economics, put forward a new perspective which managerial overconfidence
could explain the substantial heterogeneity in bank risk–taking behaviour during a boom and
performance in the subsequent crisis in these banks. In this paper, I summarize the article
Article summary The article look at the banks with overconfident chief executive officers (CEOs)
were more in favour of increase leverage and undermine lending standards than non–overconfident
banks as in before a financial crisis, generating them more defenseless to the shock of the crisis. At
the time of financial crisis years, overconfident bank more likely to experienced higher loan
defaults, banks operating performance fall as well as stock return performance and expected default
probability increase more than other banks. As CEO is the top decision make in the bank which are
the primary influence on bank investment and financing decisions, hence CEO overconfidence
behaviour affect risk–taking of the banks. Overconfident CEOs normally agree their knowledge of
future events

The Collapse Of Indymac Bank
The Collapse of IndyMac Bank
In 2008 the world faced the worst financial crisis since the great depression. Many banks closed
their doors for good that year. Among them were both small and large banks. One specific bank that
collapsed that year was IndyMac, one of the largest banks in the United States. IndyMac marked the
largest collapse of a Federal Deposit Insurance Corporation (FDIC) insured institution since 1984,
when Continental Illinois, which had $40 billion in assets, failed, according to FDIC records ("The
Fall of IndyMac 2008). This paper will talk about the cause of the collapse of IndyMac in 2008, the
handling of the issues, as well as the aftermath of the collapse. IndyMac was created by David Loeb
and Angelo Mozilo in 1985 and was originally called Countrywide Mortgage Investment. It was
built to collect Countrywide Financial loans that were too large to be sold to Fannie Mae or Freddie
Mac. IndyMac Bank was the largest savings and loan association in the Los Angeles area and the
seventh largest mortgage originator in the United States ("Too Good to Be True: The Fall of
IndyMac", 2008). In 1999, IndyMac loaned out record amounts. In the first quarter alone IndyMac
loaned out $1.6 billion. In July of 2000, IndyMac became IndyMac Bank when it acquired SGV
Bancorp. The total purchase cost was $62.5 million and it made IndyMac Bank the ninth largest
bank at the time. IndyMac was also the 28th biggest lender in the country("Too Good to Be True:
The Fall of

Essay on New Deal
The most active First Hundred Days was under president Franklin Delano Roosevelt's first term. In
a desperate attempt to solving the woes of the American population, FDR and his Congress passed
more bills than any other president–congressional combination as ever done in their first impression
time period. FDR's domestic policy, known more widely as the New Deal, was intended to be a
group of innovative measures to counteract the effects of the Great Depression. Roosevelt and the
U.S. Congress, trying to reduce unemployment, restore prosperity and return a sense of morale to
American citizens, endorsed a wide variety of bills creating new federal programs and agencies.
These agencies were known as alphabet agencies due to their titles ... Show more content on
Helpwriting.net ...
Also, the Securities and Exchange Commission (SEC) which set guidelines for the stock market to
prevent speculation like that that led to the Great Depression.
Despite those agencies mentioned above, the other creations of the New Deal led to nothing but
trouble in the long run. Agencies such as the Civilian Conservation Corps (CCC), Works Progress
Administration (WPA), and Public Works Act (PWA) created jobs for none other than young white
men, excluding women and blacks to a large degree. These agencies provided so–called jobs to men,
though they were not considered jobs to critics of the program, who called them boondoggling jobs.
Some people were required to dig a trench, then fill it in again just so they could get a salary and say
they had a job. Conservatives condemned this as a waste of government funds. The Tennessee
Valley Authority, or the TVA, was created mainly to set standards for electric rates, but also for jobs,
reforestation and flood control. In the program, Congress measured the cost of providing electricity
to this region and determined standard rates. Conservatives declared that Congress was "pouring
socialism in concrete." This meant that by building the dams, the government gained the ability to
control prices, a socialist concept. Also accursed as socialist was the National Recovery
Administration, or NRA, which set up standard competitive codes for each industry, again giving
government control of

Analysis Of The Federal Deposit Insurance Corporation
Unbanked Latinos; AARP Opportunity to Gain –Trust Unbanked, as defined by the Federal Deposit
insurance Corporation, or FDIC, is a Household that do not have a checking or savings account and
have used alternative financial services like money order, check cashing, remittance, payday loans,
etc. Economic reports have Latinos growing rapidly in the United States. There are about 57 million
Latinos in the United States and represent about 18 percent of the total population; of these 57
million, 60 percent are Millennials (18–49) and in total they inject about $1.7 trillion (projected in
2020) dollars a year to the U.S. economy. In 2014 the number of Unbanked Latino Households
declined, still the number of unbanked remains much higher ... Show more content on
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(Latinos, [documented and undocumented] lost confidence in banks in several aspects Wells Fargo
2017 Suit: Wells Fargo targeted 'undocumented immigrants ' for accounts, Thomas Lee, April 26,
2017) perhaps AARP Prepaid cards....? Fifty–three percent of Mexican immigrants and 37 percent
of other Latin American immigrants are unbanked, according to a report by the Federal Reserve
Bank in Kansas City. "Undocumented immigrants are also concerned that banks will share their
information with immigration officials, or that they wouldn't be able to access their funds if they are
deported," according to a report by the Federal Reserve Bank in Richmond, Va. "This is a real fear
among undocumented immigrants and a potentially high barrier to overcome, because it could mean
the difference between staying and working in the United States (and sending money back home)
and being forced to leave the country," the report said. All 3 generations connected through two
elements that bind them together SOLUTION: 1st, 2nd & 3rd generation Latinos have little to no
education to college educated family members in the household, some members with advanced
degrees. The number of Latinos graduating from High School dropped significantly (2000 to 2014)
and a significant number enrolled in two year college institutions, a 35% increase among the ages of
18 to 24 from 1993 to 2014 that 's a jump from 22% a 13% percentage point increase.

The Growth of American Government from the End of...
In the past, the nation's government took the "laissez–faire" approach to dealing with the economy
and/or free market affairs. The government intervened as little as possible, asserting the belief felt
that if left alone, economic problems would be resolved without government interference. However,
this approach was not guaranteed, and at times, the government had to put aside the "laissez–faire"
approach of the past. The government had no other choice but to intervene in these instances to
return balance to the economy and protect its citizens it served. The government changed both its
approach and its size through programs initiated by the Industrial Revolution, New Deal programs
during and following the Great Depression, and World ... Show more content on Helpwriting.net ...
Its purpose was to address the problem of the railroad monopolies by setting guidelines on how they
were to conduct business: by charging just and reasonable rates for shipping and passengers,
banning discounts and rebates, illegalizing price discrimination against small markets, and most
importantly, it established a five member panel to investigate and hold the railroad executives
accountable for breaking the laws of the act.3
During the building of the Transcontinental Railroad, the railroads themselves created a large market
for the steel and iron industries.4 The steel and oil industries were booming and corruption was
rampant. Andrew Carnegie had cornered the market in the steel industry and John D. Rockefeller
had cornered the oil market. Rockefeller bought up his competition after essentially putting them out
of business by flooding the market with refined oil bringing down prices and profits. He was
determined to pay no one a profit because he wanted it all for himself. He created a plan called
vertical integration which consolidated his businesses into one by creating The Standard Oil Trust.5
These two men became known as barons and got rich beyond belief. In 1890, the Government
enacted the Sherman Anti–Trust Act to prevent large firms from controlling one single industry and
finally put a stop to these monopolies and trusts, 6 but it was not rigorously enforced until the
1900's. This act was designed to restore competition and

How Did The New Deal Affect The Federal Government
Amid the Great Depression, the role of the government altered enormously. Prior to the Depression
hit, the government did close to nothing or nothing at all to assistance individuals monetarily. This
was not seen as something the administration should do. With the Depression came an adjustment in
this discernment. President Roosevelt's New Deal made government in charge of peopling from
numerous points of view. These courses run from ensuring that they would not lose cash they had
stored in banks (FDIC) to guaranteeing that they would have cash to live on after they resigned
(Social Security). When all is said in done, the New Deal brought on another part for government,
one in which the legislature did significantly more to help people monetarily.
There are numerous history specialists who see the New Deal approaches of President Franklin D.
Roosevelt as the start of the social welfare arrangement of the Federal Government. Amid the Great
Depression, there were numerous men who had no employments; thus, their families endured
hardship and yearning. The New Deal projects were a progression of local projects, for example, the
Federal Emergency Relief ... Show more content on Helpwriting.net ...
What is collectively recognized is the manner by which it changed the part of the national
government. All in all, most Americans now anticipate that the national government will manage the
economy, accommodate those that battle, and essentially be occupied with the requirements of its
natives. Before the New Deal, residents looked towards nearby governments to aid critical
crossroads. After the New Deal, many look to Washington. There are numerous cases of government
projects that would not exist in the event that it were not for the priority set by the New Deal.
Programs like school help, veteran's advantages, Medicare, Medicaid, and government interests in
expressions and sciences are all extraordinary

American Business man, Lloyd Blankfein, once quoted, "We certainly had an upheaval at the start
of the Great Depression, and that resulted in a lot of financial reform, but it wasn't done in one
stroke, and it wasn't done immediately." The Great Depression was by far the worst economic
downturn during the period of the 20th century. The financial crisis was caused by the stock market
crash in 1929 which sent Wall Street into utter chaos and turmoil. Following the stock market crash,
American citizens could no longer trust the government to protect its people and finances. Millions
of Americans were unemployed and the economy was tiptoeing on thin ice. With the upcoming
presidential election, America was desperate for industrial and agricultural revival; they had no
choice but to vote for democratic candidate, Franklin D. Roosevelt. During Roosevelt's first
inaugural address, the new president offered a propitious vision of America including increased jobs
and prosperity. He called these ideas the New Deal. The New Deal included legislation enacted by
congress and the president to lessen the repercussions followed by the Great Depression. The whole
purpose of the New Deal was to institute an application for Americans to use for revival methods.
However, some of the programs created by the New Deal are still being utilized today and have had
lasting reforms. Although President Roosevelt had much opposition during the creation of many
programs, he was able to create many

President Franklin D. Roosevelt
President Franklin D. Roosevelt, arguably one of the most famous Presidents because of his work
during such a difficult time took office in 1933. Roosevelt came into office with a bold plan and
acted on it swiftly, providing jobs and relief for those in need. "Over the next eight years, the
government instituted a series of experimental projects and programs, known collectively as the
New Deal, that aimed to restore some measure of dignity and prosperity to many Americans. More
than that, Roosevelt's New Deal permanently changed the federal government's relationship to the
U.S. populace." The New Deal consisted of a number of government–funded programs. For my
purpose though, I want to focus on the Bank Act of 1933. The Bill was sponsored by Sen. Carter
Glass (D–VA) and Rep. Henry Steagall (D–AL) and signed into law by Roosevelt in 1933. This
policy change set up the banking industry for a successful recovery and a strong future. The Bank
Act of 1933 contained many goals. One of the most crucial successes of this law was that
commercial banking and investment banking were now completely separate. This interaction had
been a problem due to overlap in business practices that weren't morally right. Another system of
value that came from this act was the Federal Deposit Insurance Corporation or FDIC, as many of us
know it today. What the FDIC does is insure deposits up to a certain amount. This was great for the
clients of the bank and brought back a sense of security among the

The New Deal allowed the government to create new programs that either provided relief or
recovery, or were a reform for the problems during that time. In the time of an economic crisis, the
government should get involved and provide a safety net for Americans. Government involvement is
necessary to work towards a resolution, but too much involvement will put too much power in the
Government's hands, which could lead to a government type we do not want in America. During
economic busts, the government should use the programs that are currently in place to provide a
safety net and support Americans. However, during economic booms Americans should provide for
themselves and not be reliant on the government to provide for them.
One of the reforms created through the New Deal that still exists today is Social Security. Social
Security was established through the Social Security Act of 1935 by Franklin D. Roosevelt. It
established a national pension fund, a public assistance program for dependent mothers and disabled
people, an unemployment insurance system, as well as benefits for victims of industrial accidents
(Social Security Act of 1935). Social Security is very beneficial regarding its ability to help those
who need it, but it is also the largest federal program today, resulting in huge expenses. CNS News
published an article regarding the spending of the Social Security Administration, and stated in the
article is, "The Social Security Administration spent a total

Essay on Effects of the Great Depression
The Effects of the Great Depression The Great Depression was a horrible event that took place
almost 100 years ago. It was a time in our society when people had no money and no food.
Everyone was losing their jobs because the companies couldn't afford to pay them and stay in
business at the same time. After the Stock Market crashed and the economy went downhill, a lot of
changes were made within the government to make sure that nothing like this would ever happen
again. This period in time was a sad period, but there were a lot of good things that happened and
took place because of it. In order to really understand all the effects that happened after the Great
Depression, you truly needed to live during the time period, but we can't do ... Show more content
on Helpwriting.net ...
As their lives were filled with sadness and no hope, they would soon learn that all of that was about
to change for them. As the 1932 Presidential elections were coming up, the citizens had to choose
the right person to lead them out of the Great Depression. In November of 1932, the United States
held a Presidential Election that was crucial to America. The voting was a one sided outcome, as
Franklin D. Roosevelt won the election by a landslide over his opponent Herbert Hoover. In his
acceptance speech in 1932 when he was a Democratic Party nominee for running president, he made
a promise to the citizens of America that there would be a "new deal for the American people." He
was determined to keep his promise to the citizens of America, that a new deal was coming. He
would later keep that promise and would eventually change the economy for the better. Roosevelt's
"New Deal Programs" were based on helping the economic problems in several different ways. The
programs that he designed were to help; "federal assistance for people who had lost their jobs,
houses, savings, and livelihoods", "job creation for the unemployed through massive public works
projects", "agricultural assistance for troubled farmers", "manufacturing assistance for troubled
industries", "stricter banking regulations to prevent bank failures", "creation of the FDIC to protect
bank customer's deposits"

The Great Depression's Altering of Government Perspective
After the prosperous age of the Golden Twenties, the Great Depression plunged the United States
into the most severe economic downturn in history. Companies went bankrupt, workers were fired in
multitudes, and the nation's money supply all but vanished. During the crisis, one quarter of the
entire nation was unemployed. The New Deal caused Americans to view their government with a
new perspective that has forever changed American politics. How did the Great Depression and
New Deal transform American politics?
The prosperity of the 1920's came to an abrupt halt when the stock market crashed in 1929. The
cause of the Great Depression was triggered by a combination of reasons. Americans had been
assured in their faith of a booming economy that they bought numerous items on credit. Ultimately
the amount of products bought on credit reached an astounding $7 billion(4). With easy access to
credit due to the government's low interest rates, people had bought all of the new automobiles and
radios without actually having the finances to pay for them. Beyond that, billions were poured into
the stock market to make quick profit, which caused problems because it inflated the stocks to
where they were selling for more than they were essentially worth. As if the stock market was not
unstable enough, margin buying added to the danger of the stock market collapse because people
were purchasing stocks with borrowed money. When the stock market collapsed, brokers demanded
but were unable

The Great Depression Of America
America has been around for many years and during those years people of America have
experienced horrible times and fantastic times. There were the world wars, and there were the
roaring twenties when America was the fastest growing. After the roaring twenties the American
economy took a turn for the worse. After such a prosperous decade, when America went into the
depression people were not ready for such a drastic change. Many people didn't understand how it
occurred, but now we have a better understanding of what happened. Imagine coming off of the
highest times in life; Broadway shows every night, everyone dressed up in suits and dresses,
everything going great and within a day all of that changes for the worst. One October day the stock
market crashed which sent the American economy into turmoil. In fact, it was one of the major
causes that led to the Great Depression. Two months after the original crash in October, stockholders
had lost more than $40 billion dollars. Even though the stock market began to regain some of its
losses, by the end of 1930, it just was not enough and America truly entered what is called the Great
Depression (Kelly. M). After the crash the American economy was trying to climb back up to what it
had once been, but it couldn't because of the hardships it had endured. People often put all the blame
on the president that was in office when the great depression occurred. President Hoover has
become somewhat notorious for trying too hard to stop

Objectives Of The New Deal

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Objectives Of The New Deal