The Great Depression Was An Economic Catastrophe Essay
Few would argue that the Great Depression was an economic catastrophe. Americans had never experienced such an extensive series of economic setbacks. Immediately after his inauguration, President Franklin D. Roosevelt (FDR) attempted to calm the citizens, reestablish, and revitalize the domestic economy. In doing so FDR’s New Deal programs provided government sponsored employment to millions of citizens and stabilized personal and business’s financial security.
FDR’s first action was to secure the banking industry. Many American’s lost most of their money in the stock market crash of 1929. In order to survive, they needed access to the money they previously deposited in their local bank. What the public failed to realize was banks do not keep large sums of depositor’s money in their vaults. Bank management invests deposited funds it in an effort to generate more wealth for the bank. Regretfully, many banks made bad investment and were insolvent; they did not have the funds to give to their customers.