The Great Depression By Franklin D. Roosevelt s New Deal...

What do you think about when you hear The Great Depression? Some might say the worst economic time in the United States of America. The Great Depression was one of the longest and innermost economic downturn in the world of history between the years of 1929 and 1939. Also, The Great Depression led to the Federal Government having a more involved role in America s economy, this was done through the creation of Franklin D. Roosevelt s New Deal Legislation, which turned out to be effective because, he helped the American people find more jobs, he created social security, and many more beneficial acts. On the other hand, The Great Depression had many issues and conditions. For example the concentration of overproduction and the over†¦show more content†¦Many Americans went wild investing beyond their needs. They were investing with money they didn’t have. Investors had to pay ten percent of the total value of stocks at the time of buying. The rest they could pay in insta llments. The stock market could not be stabilized. There were huge amount of money being borrowed out of the stock market. There were huge number of new banks that were cropping up every single day. They didn’t have any rules telling them the amount of reserves that was allowed to be loaned out. They also didn’t have any regulations to determine the minimum capital required to start up a bank. The banks were closing faster than they were opening. The situations became worse when the stock market crashed in 1929. It loss around fourteen billion dollars of wealth. After the crash, the Securities and Exchange Commission (SEC) was set up. The purpose of the SEC was to protect investors from dangerous or illegal financial practices or fraud, by requiring full and accurate financial disclosure by companies offering stocks, bonds, mutual funds, and other securities to the public. After the crash there were temporary improvement in the market. The 1929 stock market crash was l ike a petty crash that led to a bigger market crash in 1932. Another cause of The Great Depression was drought conditions. The first sign that warned them was in the agricultural sector. Farm prices dropped because of production. Technology was