During following the inauguration of Roosevelt, Congress steadily passed

During the span of the 1920s stock prices rose continuously and in 1928, took a sharp upward trend as more people invested. Investors borrowed up to 75% of the needed money from lenders and banks, only needing to use a small amount of their own money to reap a large sum. In 1929, the market continued to grow and skyrocket, with more people turning to investing and companies growing larger. The market peaked the day after Labor Day and following a small downturn in late 1929, investors started to worry as stock prices to drop as investors started to sell their shares. Black Tuesday, October, 29, 1929, the stock exchange crashed and and stock prices continued to fall for years. Soon after the crash, a recession began just before the transfer of office of president to Franklin Roosevelt. The new executive administration, along with legislation from Congress, passed programs and acts to rebuild the economy as the New Deal for Americans. In his inauguration address, Roosevelt promised to rebuild the economy and the people were willing to give him a chance, as the Depression started during the term of the previous administration under Hoover, who believed the economy could repair itself without intervention from the federal government. The Emergency Banking Act passed by Congress closed all banks as they underwent inspections to determine the safety of money kept within each bank to convince the population to keep money in banks rather than withdrawing their wealth. All banks determined to be safe remained opened while the weakest were liquidated. To further ensure the public trust in banks and to keep savings safe, Congress passed the Glass-Steagall Act the same year to form the FDIC which insured banks to guarantee deposits in the event they close. The 100 days following the inauguration of Roosevelt, Congress steadily passed new legislation to expand the president’s power to cut government spending. Awaiting the repeal of the 18th amendment by the 21st amendment on Prohibition, the Volstead Act legalized the sale and consumption of beer in the country which brought in millions of tax dollars into the economy. In April of 1933, the country was taken off the gold standard and the United States Dollar became fiat money; without the physical requirement of gold to back the value of the Dollar, money was ¬†introduced into the economy to be distributed and used. The signing of the Federal Emergency Relief Act allowed those in the nation without an income to be provided grants without the need of paying the money ¬†back. As agriculture provided one-third of the jobs for Americans, the Agricultural Adjustment Act led to the destruction of over 10 million acres of cotton and the killing of 6 million pigs; a controversial act as the population was starving, but the price of farm stocks needed to be driven up. The economy required jobs to be rebuilt and as predicted by Roger Babson before the Depression started, much of the working population was out of jobs. To created jobs and to build infrastructure, Congress created agencies such as the Tennessee Valley Authority to build dams on the Tennessee River to control floods, provide electricity to rural communities, and most importantly to created the much needed jobs the population was desperate for. Congress continued to pass laws to create administrations that would lead to large scale construction projects across the country from constructing bridges to laying down railroads. As the Depression continued, long term financial security became the main focus for the government as the New Deal shifted its goals while continuing to rebuild the economy and provide employment for Americans. The country, wanting to convince older people to leave jobs into the hands of the younger population lined up with the shift with the New Deal. In January of 1935, Roosevelt announced plans to start a Social Security program that would ensure the wellbeing of the older population. In August, Congress passed the Social Security Act that founded the Social Security Administration; a program that required workers and employers to pay a federal tax that would fund the retirement system. By guaranteeing a continued state of pensions after retirement, older workers retired, allowing the young population to take over. The New Deal’s effects on the Depression continue to affect today’s world as continued acts and programs such as the Social Security Administration encourage people to retire knowing they will receive a pension from the federal government. The FDIC continues to insure banks in the event they close by providing up to $250,000 for each depositor in each bank. While the New Deal didn’t bring the United States out of recession as it was intended, it did prevent the economy from getting any worse as it was slowly rebuilding. The desired effects of the New Deal to fully bring the economy back to where it was wouldn’t happen until the declaration of war for World War 2, where industry and the manufacturing of weapons and equipment led to the United States having the largest economy in the world.