5 jul 1933 año - LTA #3

Descripción:

Causes:
- The banks were failing:
* The Banks didn’t have any insurance for
the money that they held
* People were getting all of their money
out at the same time and since the bank
used it for loans they didn’t have it and
were going out of business
* People saw that some banks were
failing and panicked and went to go get
all of their money out which cause more
banks to fail which lead to more panic
and so on and so forth.
- The stock market crashed:
* Because there was a lot of deflation
people were trading their stocks for the
money
* This caused the stock market to crash
thus leading to the banking fails.
- Deflation:
* This caused people to have to be layed
off or fired because the drop in prices
caused employers to have less money
to employ people
* Also since people didn’t have as much
money they weren’t buying as many
goods which also caused employer’s
income to drop
Ways it affected people:
- Loss of jobs:
* Because people couldn’t afford to pay
so many workers many employees lost
their jobs
* Since during that time period many
households only had one source of
income they lost their only source of
income
* This lead to people going hungry,
becoming homeless, and many other
things
- Lower incomes:
* The workers who didn’t lose their job
most likely lost part of their income
* Though the people who did manage to
keep a job were better off, they still
suffered. Some still couldn’t afford to
pay their mortgage or had to seriously
cut down on spending.
Reforms AKA the New Deal:
- Bank Holidays
* They were created to help prevent lots
of people from getting all of their
money out of the banks on the same or
just in the same time frame
- The Three R’s
* RELIEF: Civil Works Administration,
Farm Security Administration, Federal
Emergency Relief Admin and National
Youth Administration
* REFORM: Rural Electrification
Administration , Securities And
Exchange Commission , Social Security
Administration, Indian Reorganization
Act, Tennessee Valley Authority, Federal
Deposit Insurance Corp. and the
National Labor Relations Act
* RECOVERY: National Recovery
Administration, Agricultural Adjustment
Act, Federal Housing Administration,
Public Works Administration
Source….. http://www.american-historama.org/1929-1945-depression-ww2-era/relief-recovery-reform.htm

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