Government Policies During The 1920s And 1930s

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The government policies of the 1920s and 1930s impacted the economy and the American people in countless ways. The 1920s was a period of growth and prosperity for big business and the wealthy, many me and women sought out jobs with higher wages. In the 1930s, the businesses that were once flourishing crashed,making it one of the worst economic crash in history. Unemployment rates were higher than ever and the economy was going under. This negativly it negativly affected the lower class and many business owners such as farmers.On top of this all, discrimination still continued to negatively affect African Americans. The United States government implemented policies that significantly affected the economy and the American people thoughout the …show more content…

Businesses were booming and the economy was flourishing. One policy that was significant was the reduction of tax rates. This led to increased investing and consumption. This policy helped create a booming ecomomy and many Americans were living a lavish lifestyle buying all they could get their hands on. Americans enjoyed living a high standard of living. However, in 1929 the economy crash lead to the Great Depression. With everyone living very lavish lives, the depression settled in very quickly. The tax reduction lead to the growth of consumers led to demand for agricultural products. However, this demand was only temporary and did not provide a long-term stability for farmers. This increase in industrial then led to overproduction, which caused prices to fall and have many farmers go bankrupt. Accoridng to the textbook, “Some Great Plains farmers managed to hold on to their land, but others were not as lucky. If their land was mortgaged, they had to turn the property over to the banks.” Farmers were barley able to to hold their own and were forced to default on their mortgage. They were forced out of their home and land. Up to a million farmers were in this same …show more content…

President Roosevelt addressed unemployment in one of his radio “fireside chats” saying, “First, we are giving opportunity of employment to one-quarter of a million of the unemployed, especially the young men, to go into forestry and flood prevention work” and, “Congress is about to pass legislation that will greatly ease the mortgage distress among the farmers and the home owners of the nation, by easing the burden of debt now bearing so heavily upon millions of our people.” Roosevelt and the government were finally addressing the big issue in which many people wanted the solution to. The mortgage distress greatly helped the farmers who were forced off of their land. The public took this news greatly as they loved to hear him speak out abou this issue. Many people of the lower class greatly benefited from these new job opportunities as in forestry and flood prevention. Although Roosevelt was trying to create a change, African Americans did not benefit off of his intentions. Racial inequality did not improve one bit. The sharecropping system was were white landowners were hoarding the profits of their black workers time and labor. According to the Digital History online textbook, “White landlords could make money by leaving land untilled than by putting land back into production. As

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