Stock Market Crisis Dbq

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The Stock market crash of 1929 was one of the first reasons why the Great Depression began. The stock market crash lasted ten days where the value of stocks quickly dropped as investors sold off their stock in droves. Because the negative components from the Great Depression, President Franklin Roosevelt felt it was his job to cure America’s Great Depression. A small group of intelligent minds from leading American Universities, known as the Brain Trust, were hired by Roosevelt to come up with strategies to deal with the Great Depression crisis. In Roosevelt’s First Inaugural Address, he gave many people hope about lifting America up when he stated, “The only thing we should fear is fear itself” (Roosevelt, Franklin D. “Inaugural Address” Washington, D.C. 4 March 1933). With Roosevelt’s …show more content…

Before the people had viewed that the economy and the government should be completely separate, but Roosevelt believed that it was the federal government’s responsibility to ensure the American economy is running smoothly. He brought upon the New Deal Legislation, in which was a program that enacted the three R’s, Relief, Recover and Reform. It also increased the size and power of the federal government. The Relief measures were short term strategies to help the hold stability until the economy recovered. During the Great Depression, thousands of banks started failing due to people removing their funds because they didn’t trust the banks. As a result of the bank failure, Roosevelt established a Bank Holiday, which closed all banks

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