The Great Depression: Relief, Recovery, And Reform

Great depression is considered to be such an important event in American economic and political history because it showed how our economy collapsed and our president at the time find a way to fixed our economy backed up. Great depression was the longest downturn for our economy. It had lasted about ten years and started when our stock market crash of October 1929.

President Franklin D. Roosevelt our president at the time had made a lot of programs to help the economy be better. One of the most famous programs is the New Deal. The New Deal had three programs. They are Relief, Recovery, and Reform. Relief is immediate action taken to halt the economies deterioration . Recovery was made for permanent programs to restart the flow of consumer demand. Reform is permanent programs to avoid another depression and insure citizens against economic disaster.
Roosevelt made the three Rs. Relief is immediate action taken to halt the economies deterioration. In Relief, Bank Holiday was Declared so that the panic would be stopped. Emergency Banking Act was made to closed the insolvent banks and only reopened the solvent ones. Also, Federal Emergency Relief Act (FERA) was made to give immediate help to those that needed it in the form of cash payments. On the other hand, Recovery was made for permanent programs to restart the flow of consumer demand. An Example of Recovery was Agricultural Adjustment Act (AAA). It was made to taxed food processors and gave the money directly to farmers as a payment for not growing food. This decreased supply so price would go up. Lastly, Reform is permanent programs to avoid another depression and insure citizens against economic disasters. An example of Reform is Securities & Exchange Commission (SEC). It is Permanent Agency set up to monitor stock market activity and ensure that no fraud or insider trading was taking