Poverty Of The Great Depression - 2381 Words

Poverty in the Great Depression Do you want to live in a dictatorship? During the Great Depression President Franklin D. Roosevelt said â€Å"True individual freedom cannot exist without economic security and independence. People who are hungry and out of a job are the stuff of which dictatorships are made of†. The Great Depression in the United States began after the stock market crash of October 1929 because Americans gambled on the stock market with money they didn’t really have and when the prices of stocks started to drop panicked investors tried to bail out. Investors dumped shares. A record 12.9 million shares was traded on October 24, 1929, â€Å"Black Thursday†, then five days later on October 29, 1929, â€Å"Black Tuesday†, 16 million†¦show more content†¦The New Deal stabilized banking, created employment and created a support system for the needy. The New Deal also created Federal agencies which gave Americans hope and faith in a government of social justice. From the New Deal came the Banking Act of 1933, which stabilized banks by guaranteeing Americans that their deposits were safe as the Federal government would insure it via the FDIC (Federal Deposit Insurance Corporation). Agencies to protect employment was created, such as: the Works Progress Administration, the Civilian Conservation Corps, and the Agricultural Adjustment Administration; along with regulatory agencies like the Securities Exchange Commission, the Federal Housing Administration, the National Labor Relations Board, the Civil Aeronautics Authority, and the Federal Communications Commission. The New Deal created the Social Security Act, giving rise to the Social Security Administration which provided pensions to the old, and support to dependent children and the disabled. The Great Depression brought about the need for leadership because of the widespread poverty being experienced by the American people. People were unemployed, hungry and homeless, with many also l osing their life savings due to the large number of banks that failed. Millions of people across the United States lost their jobs, leading to losses of homes. It was estimated that 20%-25% (1 in 4) persons