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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During the depression, agricultural product prices continued to drop. When Roosevelt became president, one of the first issues he addressed was the “farm problem.” He would go and visit these poor farmers and promise some type of change. Roosevelt created the Agricultural Adjustment Act of 1933, which brought immediate change and provided crop reduction. This Act paid farmers not to plant, in exchange for cash payments.
1) Describe the economic factors prevalent in the 1920s that led to the crash of 1929 and the Great Depression that followed. The economic structure of the United States following World War I led to a period of economic prosperity that led to a dramatic cultural shift in the United States of the “Roaring Twenties.” Industrial growth and consumerist attitudes changed America’s socioeconomic landscape in many ways during this time. Unfortunately, the economic success of this era eventually led to various political and economic missteps that preluded Black Tuesday and the beginning of the Great Depression.
The 1920s compared to the 1930s were drastically different in many ways. The 1920s were a time of great economic growth and many cultural movements. However, the 1930s were close to the exact opposite, the downfall of the previous growth. The United States experienced rapid growth throughout the 1920s in many different ways. During the 1920s there was an influx of mass production and commercial industries, such as the automobile, radio, cinemas, and many other advanced technologies.
When The great depression struck it hit the economy and the people hard during the Great Depression, The Federal Government took a more active role in the economic, political, and social problems centering around the Great Depression and their new role also developed more effective answers than their past role in inactivity. Americans all over the world were listening to the radio and hearing the news of the crash of the stock market. The Great Depression was important to U.S history because it showed us the flaws in our financial system and now we are able to fix those errors. At first,"Herbert Hoover had bad luck to be president when the great depression hit.
The great depression is an immense tragedy that took millions of people in the United States from work. It marked the beginning of involvement from the government to the country’s economy and also the society as a whole. We still feel and deal with the ramifications from the laws and policies made to get us out of the economic drought and ensure it never happens again. There is a huge contrast between the 1920’s and the 1930’s as the what they call ‘The roaring twenties” was full of prosperity and wealth due to the destruction of Europe and its economy after World War One. The 1920’s were truly crucial for the U.S as it is when it becomes a truly modernized nation.
In the 1920’s, business was booming, normal people were gaining wealth and there was a revolution in the public’s view of women. These advances led the world to believe that life could only get better. When President Hoover was inaugurated he saw a bright future for the country. This belief was sadly only wishful thinking because the next decade experienced woe after woe due to the carelessness of the 1920’s. The Great Depression was caused by multiple issues and many problems arose because of it.
The wealth during the 1920s left Americans unprepared for the economic depression they would face in the 1930s. The Great Depression occurred because of overproduction by farmers and factories, consumption of goods decreased, uneven distribution of wealth, and overexpansion of credit. Hoover was president when the depression first began, and he maintained the government’s laissez-faire attitude in the economy. However, after the election of FDR in 1932, his many alphabet soup programs in his first one hundred days in office addressed the nation’s need for change.
The 1920s and 1930s was a time of dramatic change to the economical, political, and social aspects of the world. Throughout this time period, the world witnessed many ups and downs. However, these events lead to the significant change of the way of life which would affect the world for many years to come. Firstly, the economy in the 1920s and 1930s were complete opposites. The 1920s, also known as the “roaring 20s” was a period of impressive economic growth and prosperity marked by technological advancements and consumerism.
The crash aloe did not cause the depression. Farmers were already in trouble and had never fully recovered from the recession of the early 1920s. European and American farmers contiued to produce more food than consumers could use, so prices fell. With decreased profits, American farmers could not repay their mortgages. And European farmers could not purchase the products that American and Asian industries were trying to export.
The government fiscal policies In the 1920s, made it easier for the wealthy to get even wealthier because they reduced business regulations which allowed the wealthy to keep more of their money. The reduced business regulations and low taxes increased the profits of corporations and made their stocks more valuable. However, the poor and middle-class families couldn't buy products because their wages couldn't afford the products due to the changes in prices. This under-consumption lead to business overproduction and soon caused business profits to drop.
Just by over the next few years, 13 to 15 million people were unemployed and companies started to go downhill; even nearly half of America's banks had failed! Luckily, every problem always have a solution; that's when our President Franklin D. Roosevelt stepped up to the plate and helped our economy to discontinue
The major cultural and societal changes in America, in the 1920s, that paved the way for the Great Depression were the Prohibition (of alcohol) Act, improved transportation, and the changing role of women. By creating the Prohibition (of alcohol) Act, the leaders thought that it would lower the crime rate, but instead, it actively demonstrated an increase in the crime rate. Although the transportation system was significantly improved, it still had some flaws. Likewise, women and men's wage gaps decreased drastically, but they are still not equal to this day. Considering all this, there are both positive and negative reactions to the changes that were made in America, in the 1920s.
The 1920s to the early 1930s was a time of great despair and negatively affected everyone. All the people were in a frantic panic and nobody could think of what to do. The great depression was a period of unemployment and economic shock, there was no motivation to work. People were lazy and had no hope for their economic system or for improving things. Most researchers and historians say the primary cause of the great depression was the crash of the stock market and the failure of the banking system.