This act benefits buyers and lenders because it allows the buyers who are looking for housing even low income families to find housing within their budget. While the lenders get their money without having to inflate prices. Also, financial corruption from banks and wall street had influenced the creation of The Great Recession. There was predatory lending in the mortgage markets and banks had knowingly loaned millions of checks on mortgages . This led to a tremendous Economic crash as stated in (document e ).
He did this through Executive Order 6102, in which Americans had to turn in all of their gold. Although this may seem negative, it actually improved the economy through the devaluation of US dollar, which in turn made US exports more cheaper and thus more popular. (Klein) Besides that, the New Deal also created many governmental programs that are still in use today, such as welfare and the Federal Housing Administration. The New Deal was a benefit to the people, as it focused on improving the quality of life and creating jobs. FDR is not the only person to be an advocate for the termination of desolation.
The recent financial crisis is attributed in many ways to financial innovations in the mortgage market that made it easier for people with high risk of default to access credit. Although these financial innovations gave millions of Americans an opportunity to purchase a home, their overall social benefit is questionable (Johnson, Kwak 2012). In his address at the Federal Reserve Bank in Atlanta in March 2007 Ben Bernanke pointed out, that despite "the challenges and the risks that financial innovation may create, we should also always keep in view the enormous economic benefits that flow from a healthy and innovative financial sector" (Bernanke 2007). The goal of financial innovations is to make financial intermediation easier, moving capital to where it is needed most. Bernanke continued to state that financial innovations promoted economic growth, and made the economy more resilient to busts.
The Industrial Revolution brought down the prices of crops produced by farmers, this meant that farmers were not making enough money to pay off their debts. This increasing problem was slowly digging farmers into a hole with what seemed to be no escape. To add on to their everlasting money problems, middlemen and railroad companies were price gouging the farmers. This meant, the companies were asking farmers to pay prices which had been far higher than the actual value of the products needed for the farmers to raise crops. Companies did this, because they knew that farmers could not buy their goods from other businesses due to the fact that there were not any others in sight.
During Westward Expansion farmers fell victims to the low pricing of the crops. Most farmers struggled to make a living due to key issues. There was often a high tax on railroads which had cut a large profit from the farmers. The farmers had no other option other than the railroad since the farmers were often very far off westward in the Great Plains, while the market with a large population was still in eastern cities like New York. Likewise farmers had to pay a middle man in the East to sell their commodities in the East, because the poor farmers were unable to travel all the way to the East to sell their products then come back to start farming for the next year.
With money hard to come by, they were not selling the fruits of their labor (www.history.http://www.history.com/topics/great-depressioncom/topics/great-depression). Thankfully they had food to eat, but without purchases of their crops, the supplies they were going to need for the next harvest were non-existent. This cycle them trickled down to the starving public. Around the early 1930’s severe drought and devastating wind storms known as the dust bowl rushed into the Great Plains region and caused a wide spread massacre of plants and farms, crippling most food resources (www.history.http://www.history.com/topics/great-depressioncom/topics/great-depression). It is a wonder we ever recovered from the grips of the dust
The government gave the people the land they needed to grow their wheat but shortly after both their land and their wheat prices shriveled up. Causing the people to have no food or money and now the environment seemed to be giving them a beating. The land was now being swept away and becoming a part of the storm. It was becoming harder for people to support their families and keep their dignity. These people also had to face the realization of the declining fortunes.
During the “Dirty Thirties,” the Dust Bowl took place and affected farmers across the Midwest, resulting in less money and the collapse of business; however, the president enacted the New Deal which solved a lot of the problems. The market crash caused businesses to close and as a result, people wanted to work for any wage. The 1929 market crash caused the Great Depression and closed factories (Worster 5). When
Such are the challenges the industry is facing that investors are less interested in quarter miss or beat and more on the uncertainty around the pending planting season and all the related worries on fertilizer demand, farm income, planted acreage, etc. Even Mosaic’s CEO acknowledged in the most recent earnings call that markets were relatively uninterested in the company’s quarterly performance relative to the uncertainties facing the fertilizer industry.
In comparing “I” to “we”, Steinbeck comments that “the quality of owning freezes you forever into “I,” and cuts you off forever from the “we” (152). When a person has something, they worry about their personal possessions and consider others needs but neglect to share their wealth and their mindset. They feel owning a job or their home makes them sperate from others in their struggle to stay in positions of wealth.. During the dust bowl many instances of this selfishness show. In the farmland, a few take what they can when losing their homes. They start using tractors which one farmer protests, saying “for your three dollars a day fifteen or twenty families can 't eat at all.
However, when the Reserve was created, a single form of currency was put into use and much simplified they financial system. The Federal Reserve is also important because it provides payments to many banks, in case that bank should run out of money, which also helps to prevent further financial crisis. It also helps to prevent inflation, creating a more stable market so that consumers can continue to make general and long-term purchases without worrying if spending money will eventually cause an economic crisis. These are just a few of the ways that the Reserve helps sustain the US financial market. Overall, the Federal Reserve provides stability and simplicity to the economy, and therefore is an essential part of the United States government.