President Roosevelt and the New Deal.

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History Coursework                10/05/2007

President Roosevelt and the New Deal

In the 1920’s or the ‘Roaring Twenties’ as they were then referred to, there was a great deal of money, crime and corruption floating around in the American economy and stock market. A lot of people were buying on credit and getting out loans to invest on the stock market. This was encouraged by President Hoover and his Republican government. The reason for their doing of this was partly to gain a lot of money for themselves and to make America look good for any visitors. It was a time of conservatism, it was a time great social change. From the world of fashion to the world to politics, forces clashed to produce the most explosive decade of the century. In music, the sound of the age was jazz. The Jazz Age came about with artist like Bessie Smith and Duke Ellington. Youth ruled everything. From the young styles of dress to the latest celebrities. If it was young, it was the thing. The new age ladies of this time were young ladies who would go out wearing loose clothing and loads of make up (flappers) and this was unseen before in the States. It was the age of prohibition, it was the age of prosperity, and it was the age of downfall. The Government encouraged the people to buy lots of goods and to invest in the stock market. The poorer people looked at the rich people and thought that they could be as rich as them if they took out a loan, but the bank manager would see these people as unreliable in the terms of the people paying back the money. The bank managers therefore charged the poorer person maybe 15% interest where as if a person with a nice car and a large house came in to take out a loan then the manager would think that they are more likely to pay back the money so they would only put 5% interest on their loan. This in fact put the poorer person in even more debt as they had to pay back a lot more than the richer person. It was also a time of great racism in America with the Ku Klux Klan operating in their most vicious period killing a lot of people and the police hardly took any notice of their actions. Most city officials were owned by the Mafia and they did whatever the Mafia wanted them to do. This greatly increased the rate of crime in most parts of America and because this was the time of prohibition the Mafia brought lots of alcohol into the country.

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His party was a very relaxed with the economy and with the way it was run and they had adopted a policy of ‘laissez faire’. They said that they would not govern and guide the American economy but they would let it take its way down its own path and see where it ends up. Obviously they did not completely abandon it however they did not keep the right amount of watch on it as they should have done. This irregular regulation the economy led to an major imbalance in the products which America had been selling to their population. ...

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