Discuss actions taken by the government ,and/or various groups, and/or individuals in an attempt to solve the problems brought about by the Great Depression
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The first attempts to solve the Great Depression were by the Hoover Administration, none of which had much effect on an economy in free fall:
- The Reconstruction Finance Corporation provided emergency loans to banks, railroads, and insurance companies in an attempt to stop large scale bankruptcies.
- The Federal Home Loan Bank Act created Savings and Loan Associations to promote home ownership.
- The Emergency Relief and Construction Act provided funds for state and federal public works.
- The Glass Steagal Act of 1932 released $750 million in gold from the treasury to put more money in circulation.
The Franklin Roosevelt Administration undertook many more programs, commonly grouped as programs to provide Relief, Recovery and Reform. Although they gave people hope and provided some relief, they did not end the Depression. That did not happen until the advent of World War II. Among the actions taken (too numerous to mention them all here:)
- Roosevelt declared a four day "bank holiday" in which all the banks in the nation were closed. This allowed time for people to calm down. In a fireside chat, he assured them that their money was safe in the banks. When banks reopened, there were no runs.
- The Glass-Steagal Banking Act created the Federal Reserve System to regulate banking.
- All gold was ordered into the treasury and the price of gold set at $25.00 per ounce. U.S. citizens were not allowed to own gold except nominal amounts for jewelry and coin collections.
- The Civilian Conservation Corps put young men to work on public projects. Part of their earnings were deposited in savings accounts for them, and some sent home to their parents.
- The Tennessee Valley Authority put people to work building hydro-electric dams and power plants on various rivers in the Tennessee River Valley system.
- The Social Security Act provided a monthly income for elderly people and those who were blind or disabled.
- The Agricultural Adjustment Act encouraged farmers to turn under one fourth of their crops to limit production and thereby bring up farm prices.
These are the major programs. There were many more of disparate importance. I encourage you to read the links below for more information.
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