The Federal Reserve Board was created in 1913, it was to act as the lender of last resort to prevent bank panics. It was supposedly the watchdog over these banks. Throughout the years preceding the Stock Market crash The Federal Reserve Board set market interest rates and low reserve requirements that all favored the big banks. The money supply actual increased during this time. It was in 1929 that the Federal Reserve Board realized that it could not sustain it's current policy to be the watchdog. When it started to raise in interest rates they were allowing people to pay 10% now and the other 90% later. The Federal Reseve Board was not receving enough money to keep these stocks going, to much money was going out and not enough going in. The Stock Market finally crashed and the bank panics began. Bank failure was another cause for the Great Depression. Banks deposits were uninsured and thus as banks failed people simply lost their savings. Then with the stock market crash and the fears of further economic woes, people from all classes stopped purchasing items. This then led to a reduction in the number of items produced and thus a reduction in the employment. Unemployment became so popular during the Depression that it rose up to 25%. Usually a president like Hoover was suspected to do nothing and let the market depression find it's own way out of the depression, instead Hoover intervened. He introduced the Hawley-Smoot Tariff , which could have been the worst idea ever in this situation. This only raised tariffs which was not really wise on his part, yet lowering tariffs would have been the best plan for Hoover. The Great Depression alter the American social fabric in the 1930's with unemployment, use of new technologies (radio) more often, new administrations, and industrialization.
The Great Depression was a time of hysteria and panic. Although there were many economic changes, the Great Depression also greatly altered the American social society. A new way of life was brought about by many of FDR's new administrations, they lessen many burdens faced by Americans. Artistic programs were set up and the use of radio also significantly changed lifestyles, many people began to use these radios to broadcast how they felt about the presidents( one was Father Coughlin). Under Roosevelt, many new administrations were created in order to help the many jobless starving Americans. The Civilian Conservation Corps (CCC) was made up of young boys who were sent off to work. These boys worked and parts of their paychecks were often sent home to their parents, this employed millions of young men. The Tennessee Valley Association (TVA) was another agency. The TVA was criticized by many as being built on socialistic lines and as a waste of money towards the economy. A hydro electric plant was set up to produce power and the surrounding areas were employed by the plant. It helped create dams in the Tennessee Valley area, and cleared trees from some forests.
Nationalism and cooperation was seen among many Americans during the Great Depression. The National Industry Recovery Agency was created and many companies joined its works. This did often upset Americans yet, Roosevelt would use his wonderful communication skills to calm and soothe the unhappy public by talking to them through the radio. Roosevelt urged them to help each other and to work together during their time of need. The living condition in America were horrible during the Great Depression. Many people who invested in the stock market were now left without homes and jobs. Businesses were closing rapidly leaving an unemployment rate of about 25%. Many people were starving and working hard just to survive. Many were angered by the actions of the Agricultural Adjustment Administration (AAA) when they destroyed food and paid farmers not to use land in order to raise farm product prices. Artistic programs were set up under Roosevelt's New Deal during the Great Depression. Artists were hired to paint murals and musicians performed in public places. These programs provided for entertainment for people who were continually faced with unhappiness. During the Great Depression, the conditions of blacks stayed the same or worsened. Many blacks were tenant farmers and sharecroppers so when the AAA (found unconstitutional) paid farmers to take land out of production, they were kicked off of their land and left homeless. There were no significant advancements for blacks during the depression, the social status of blacks was only being poor.
The Great Depression was so broad that it affected all directly and indirectly,the rich,the poor, even the middle class. The change in the social status of America in contrast to the 1920s was totally different. The 1920s were so highly prosperous and wonderful. There were many cultural advancements. Then in the 1930s it left Americans feeling horrible, poor, weak,and unhappy. Many were unemployed and starving. While there were administrations created in order to relieve many problems, many were insufficient and inadequate of relieving the horrible status of American society while others seemed to work during that time period. One was the Public Works Administration (PWA) which was a government administration that FDR and Congress formed in 1933 to create new jobs, improve the nation’s infrastructure, and provide unemployment relief. The Works Progress Administration (WPA) similar to the PWA hired over 10 million American men to construct public works projects such as roads, bridges, and public buildings. The National Recovery Administration (NRA) was the keystone of the early new deal program launched by Roosevelt. NRA permitted businesses to decide what they wanted to do either, regulate prices, wages, working conditions, and even credit terms.
There were also significant Acts established during the depression that contributed to the American social fabric. The Wagner Act legalized labor unions’ right to organize and bargain collectively. Social Security Act established pensions for the elderly, handicapped, and unemployed. National Industrial Recovery Act brought on by the Public Works Administration (PWA), and was designed to stimulate U.S industrial recovery by putting federal funds into large-scale construction projects. The Fair Labor Standards Act established a federal Minimum Wage and maximum-hours policy. This act was intended to prevent competitive wage cutting by employers during the Depression so wages eventually did go up.
The Great Depression was the worst economic slump ever in U.S. history, and one which spread throughout all of the industrialized part of the world. The depression began in late 1929 and lasted for about a decade. Caused on by numerous of issues the stock market crash, over production, bank failure, and low income into these banks. The social fabric of America was greatly altered by the Great Depression. Many of Roosevelt's administrations and Acts greatly changed American life. There was also nationalism and cooperation within the people. Many artistic programs were created and blacks were treated unfairly. There existed many changes brought forth in the 1930s due to the Great Depression. Social fabric was indeed altered during the great depression unemployment, money cuts, industrialization, and radio began to be used more.
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