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Great Depression
-when panicked sellers traded nearly 60 mil shares on new york stock exchange
-corporations could no longer raise funds
-in 1940 15% was the lowest employment rate
-people had fought for their daily survival banks failed and many people were out of work
-the money supply growth caused by huge international gold influence was a crucial source of the recovery in the US economy
-people were hungry & went homeless -
The Gold Standard
-gold & silver were traded
-use of the gold standard came to an end in 1933 when president Roosevelt issued an executive order outlawing the ship to gold, but Roosevelt wanted people to rely on paper money (fiat money)
-to expand to money supply & stimulate economic activity -
21st amendment
-in the 1933 , the 21st amendment to the Constitution was passed and ratified ending national prohibition
-after the repeal of the 18th amendment some states continued prohibition by maintaining statewide temperance laws -
Tennessee valley authority
-built a government owned dams along the river
-control floods and produced electricity
-some feared it as a form of socialism -
federal deposit insurance corporation
-the FDIC provided federal insurance for individual bank accounts of up to $5,000 reassuring millions of banks customers that their money was safe
-congress & the president also worked to regulate the stock market in which people had lost faith because of the crash of 1929
-the FDIC was part of Roosevelt's new deal in the 3 r's relief, recovery, & reform