BY: Joyia Hopkins
Causes and Efffects of the Depression , 1929-1933
During the wall street crash the ever rising stock prices became a symbol and a center of wealth during the prosperous 1920s. "Boom" was in full throttle in the United States and the world economy during the late 1920s. Stock prices continued to go up for a total of 18 months from March of 1928 to September 1929. September 3rd the Jones Industry finally reached a high of 381. Millions invested in the "boom" of 1928 and millions also lost their money when the "boom" collapsed in October 1929. Even though the stock prices collapsed tremendously due to the crash the actual panic didn't start until a Thursday towards the end of October. During this Black Thursday October 24, 1929 there was an unusual amount of selling on Wall Street, and the stock prices rose. On Black Tuesday, October 29, the bottom fell out, as millions ordered their brokers to sell, when there were no buyers to be found. From October 24, 1929 prices on wall street continued to go down. Wages went up only a little bit compared to the big increases in productivity and the corporate profits. The economy's success wasn't shared by all
In June of 1930, the president signed in on a law schedule with tariff rates that were the highest in history. The Hawley Smoot tariff which was passed by the Republican congress helped set tax increases which ranged between 31 to 49 percent on foreign imports. European countries had higher tariff rates of their own against the United States' goods. This effect was only to decrease trade for every nation, both the national economy and the international economy went deeper into depression. By the year of 1931, conditions got even worse in Europe and the United States that the Dawes plan was discontinued. Hoover proposed a suspension on international debt payments. Britain and Germany accepted the suspension, France didn't. President Hoover felt that government action was well needed to help pull the United States out of their doldrums. He even supported law programs that gave assistance to farmers and struggling businesses that were in debt. The farm board was made in 1929 right before the stock market crash, but its power wasn't enlarged until later to meet the economic crisis.
Franklin D. Roosevelts New Deal
Roosevelt was the only child of his rich New York family. Roosevelt admired his cousin Theodore and followed in his footsteps, becoming a New York legislator and later a U.S. assistant secretary of the navy. Franklin was a Democrat. By 1920 he was a Democratic nominee for vice president. Both Franklin and James Cox lost the election. In the middle of Franklin's promising career he became paralyzed by Polio in 1921. Franklin had more than enough money to retire, instead he labored to continue his career in politics and soon got the full power of his upper body back.
The Second New Deal
Harry Hopkins became important with Roosevelt's administration with the newest creation in the year of 1935, which Hopkins was head of. The WPA spent billions of dollars between the years 1935-1940 to get people jobs. After the first year of operation with Hopkins, 3.4 million men were employed . They were paid double the relief rate but less than the wage. Most workers were put to work making new bridges, roads, airports, and public buildings. The (NYA) gave part time jobs to help the young people stay in high school and college until they could get a job. The reform of the second new deal reviewed Roosevelt's belief about the industrial workers and farmers. The major labor law of 1935 replaced labor provisions of the National Industrial Recovery Act. The new agency gave loans for electrical cooperatives. And a revenue act of 1935 increased the income taxes of the wealthy. The Social security act made a federal insurance program based on the automatic collection of taxes from employees and employers through their careers. The social security trust fund would be used to help make monthly payments to people over 65 that retired.