I will be focusing on just a few key areas that have been struck due to the recession for President Obama and the Great Depression for President Roosevelt and how each man either fixed the problem or is attempting to. Here is just a short list of issues: unemployment rate, financial institutions and the stock market. Just like President Roosevelt, President Obama hit the ground running with his uncanny ability to act upon the economic crisis that was yet again effecting the American people. Obama scored major points with the people since within his first hundred days in office he was able to get congress a much needed stimulus package for their approval that would take care of the financial crisis the American people were facing with major businesses and financial institutions declining at a very fast pace. However, Roosevelt was facing a much worse scenario with an unemployment rate of nearly 25% after the stock market crash of 1929.
It did not only affect Americans, but also the whole world. The Great Depression was caused by the crash of the stock market or the lack of real investment opportunities in the 1920’s, product innovation that caused less labor, President Roosevelt believed that it was caused by the structural problems and doubted simulative spending will solve the problem, and some argued it was caused by the shift toward modern employment relation that was made by the Great War. A Depression in the economy can start by raising taxes and dismissing government’s employees and both of these actions can start a depression and both of these were done by the government in 1929. Once this is done, it will have a chain reaction where it will get to the point where the economy will fall and cause its people to live in poverty. The prices of the products will either increase or stay the same but the wages of the people will always decrease.
When Franklin D Roosevelt came to power in 1933, first of all he promised a new deal. Roosevelt was clear that he would use his full power to get the US out of depression. His main objectives was getting Americans back to work, protecting their savings, providing relief for the sick, old and unemployed and also getting American industry and agriculture back on their feet. For Roosevelt’s first 100 days, he worked with a fast pace of activity. In the months between the US elections, the economic state was at a low.
The Modern Presidency What were the key reasons behind FDR being elected the 32th President of the United States? During its year of existence the United States had seen 43 Presidents, governing its citizens created policies with the exception of Barack Obama makes him the 44th President but has not finished his term in office. But nonetheless in 1933 a man with views and a character different than his predecessors won the trust of millions of America in which at a point had no hope. His name was Franklin Delano Roosevelt, his willingness to bring the U.S. out of a financial turmoil and establish it as the most powerful nation on the earth was not only admired by Americans citizens but across the world. Franklin Delano Roosevelt (1882-1945) or just known as FDR was the 32nd President of the United States of America (1933-1945).
Many of our nation’s parks, forests, roads and airports we use today are a result of these programs. He helped save the nation’s economy by first declaring a “bank holiday” in which he closed banks for one day to stop people from withdrawing their money from the banks. He ordered the federal government to inspect all banks, closing ones that could not be supported and reopened only ones that were solvent or that could be saved. In 1933 he enacted the Securities Act that required all banks and investment brokers give accurate and timely information to investors. He also created the Federal Deposit Insurance Corporation (the FDIC) which guarantee’s deposits as well as prevents the commercial banks from investment banking and risking the deposits of its members.
Perhaps the worst economic downturn in the history of the United States occurred from 1930-1939. The Great Depression led to domestic and international crises effecting the poor and wealthy alike. Many financial experts today continue to debate the cause of The Depression, although most agree that several events led to the economic decline. The famous stock market crash on October 29, 1929 is just one of many causes economists believe led to The Great Depression. Known also as Black Tuesday, October 29th left stockholders shattered with recorded losses reaching $40 billion dollars (Kelly, n.d.).
The depression reminded H. Hauser “of the war, of the worst period of starvation in 1917 and 1918, but even then people paid for potatoes”. Nevertheless, there had been major economic problems in Germany before October 1929 and even in 1931 politicians expected the economy to recover naturally. However, in the summer of 1931 a major banking crisis deepened the slump and the government had to resolve to many extremes to rescue Germany. Therefore, as
Then finally on October 29,1929th the stock market crashed, because no one was buying and this directly led to the Great Depression. After the Stock market crashed not even 2 months later, the stock holders had lost more than forty billion dollars. Though the market had once again began to come of its losses back by the end of 1930, it was not enough and America entered what we now know as The Great Depression. After the stock market
Franklin D. Roosevelt and the Success of His New Deal The American economy started weakening by the middle of the1920s. However, over investment and speculating in stocks inflated their prices that contributed to the delusion of a robust economy. Since stocks were the hottest commodity to invest in, people borrowed money and used their stocks as collateral to the banks.The Great Depression was considered started on Black Thursday October 24th, 1929 when the New York Stock Exchange collapsed in the greatest market crash with the Dow closed at 316.38, and the plunge continued until the Dow reached its low of 41.22 in 1932. When the stocks values dropped, people were not able to pay for their debts while the banks just held worthless collaterals. Many banks declared bankruptcies because they could not get back their money from stock investors.
The Great Depression was triggered by a sudden, total collapse in the stock market. This day, October 29, 1929, came to be known as Black Tuesday. There were many probable causes of this devastating time, such as massive bank failures, and the stock market crash. Others, such as economists, such as Peter Termin and Barry Eichengreen, believe the blame lies on Britain’s decision to return to the Gold Standard. According to many sources, recession cycles are a normal phenomenon.