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Solutions To The Great Depression

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After the stock market crash of 1929, the United States went into a period of economic crisis known as the Great Depression. The stocks crashed because the market was overvalued. The stocks were priced higher than their true value so when they came down, people panicked and sold their stock. Some problems that came from the crash was the banks collapsing, unemployment and loss of life savings. Actions by the government, various groups and individuals made attempts to solve these problems. Some of the solutions were FDR’s New Deal, kitchens opening to the starving, government jobs and the townshed plan.

“On October 24, 1929, also known as Black Thursday was the day that the American Dream turned into a nightmare as The Wall Street Stock Market …show more content…

Franklin Roosevelt made smart choices in how he was going to help. He created the bank holiday and the FDIC which would help to preserve the banks. The bank holiday was when the banks closed for a period of time so that people wouldn't withdraw their money. The FDIC was a corporation which insured savings accounts in something called sound banks. Many people believed that this was a good idea and that their money would be safe (document 5). FDR’s “New Deal” plan was to provide relief. He created programs such as the Public Works Administration (PWA) and the Social Security Act (SSA). The PWA gave billions of dollars to create jobs. It created jobs like building highways, dams and other public buildings. The SSA provided retirement funds (pensions), welfare aid to those who are in need, and unemployment payments. The SSA helped many elderly people by providing retirement after the age of 60, with 200 dollars a month for life (document 7). Kitchens soon started to open up to the unemployed and served them free food and drinks. There would be lines of unemployed people waiting to get food and drinks (document 6). FDR and various other groups assisted in creating solutions that helped solve some of the major problems during the Great …show more content…

The great depression went on for 10 years and ended in 1939. In the end there needed to be many different solutions in order to save America from this horrible and depressing

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