term paper for history

Submitted By sarahochoa21
Words: 1682
Pages: 7

The world’s largest problem is debt, there is no uncertainty about that. Sure, some can debate that there are minor problems that root a big difference in the way the government functions. During the 20 century there was a major crisis in the government’s budget. “All of a sudden, the plug was pulled out of the bathtub.”1 This is known as the Great Depression, which lasted about a decade and a half. World War 1 was what led up to the recession which soon developed and became a depression. Many may know J.P. Morgan well his son tried to help out the economy by lending them thirty billion dollars to stabilize the banks money. The stock market crash was a contribution to Great Depression along with the lack of trade, and weather conditions. Roosevelt claimed that he would come up with “new deals” that would bring the depression to an end. Personally, Roosevelt came to power and gave us hope but his “new deals” didn’t take us out of the Great Depression. There are many factors that contributed to the development of many jobs, schools, roads, rivers, damns, parks and car manufacturing but the new deals were just a spark of hope. Yes, that encouraged their spirits and the citizens tried as well but when they learned in depth, the people started to get a little apprehensive about the “New Deals” and how it affected the government and maybe was it a good choice to get rid of Herbert Hoover and replace him with this Democrat winning over the Republican Party. To many the famous Franklin Delano Roosevelt was following in his cousin, Theodore Roosevelt, footprints by getting into politics and serving as Secretary of the Navy and running for Vice-President but losses. The stock market crash, 1929, was one of the three major foundations for the Great Depression alongside with “The loss of international trade played an enormous role-just as both Hoover and Roosevelt said at different points. If the United States had not raised tariffs at the beginning of the decade and Europe had not collapsed in the 1930’s, the United States would have had a trading partner to help sustain it. Part of the problem was the challenge of transition to industrialization from agriculture. Part was freakish weather: floods on the uncanny Dust Bowl seemed to validate the sense of apocalypse. With money and the weather breaking down, men and women in America felt extraordinarily helpless. They were willing to suspend disbelief. But the deepest problem was the intervention, the lack of faith in the marketplace.”2 The economy was in great shape, during the jazz age, there was a significant amount of money in the banks and everyone was buying stocks on margin. The people were borrowing money like crazy until the banks finally had no money everyone lost their cash, although some saw the warning signs and sold their shares right in the nick of time others lost all their money. Some of the warning signs that proved that the Great Depression was approaching include the decrease in agricultural, heavy industries, and constructing. And on October 29, 1929, Black Tuesday, the stock market finally crashed, corporations were out of business, banks had no money, workers lost their jobs and owners lost their employers, employees, and companies. The stocks were no longer worth anything more than the paper the stocks were written on. During this time president Herbert Hoover had no cure for this but to say “localism” for church charity and government charities. Herbert also tried to cut income tax, this wasn’t very successful considering that the tax was only .0115 percent on yearly pay check which come out to an approximate amount of six dollars. These techniques didn’t benefit the debt or poverty whatsoever, therefore the people of the United States were looking for a better candidate and they turned their heads toward Franklin Delano Roosevelt. This president promised “New Deals” which functioned for a while and gave them hope. The New…