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Herbert Hoover became president. While he was president his economic policies stopped the depression. He lowered the take income to 25 to 24%, he did this because he thought a free market economy would all forces of capitalism to to fix any economic downturn.
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Hoover signed the Smooth-Hawley Tariff Act, which had raised prices on 900 imports. This act was originally supposed to help farmers, but ended up imposing tariff on many other products. When this had happened many countries sat off a trade war, which caused the international trade to collapse.
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In Minneapolis a drought had occurred causing many people causing food riots in many grocery stores. This drought had hit eight Southern states and it was the worst drought in the 20th century for Arkansas. With this happening the economy shrank 6.4% and unemployment rate rose 15.9%, this always caused prices to fall 9.3$ because no one had money to buy anything.
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FDR began his third term. The drought ended as near-normal rainfall returned. The United States sent war supplies to England. Germany sank a U.S. Navy destroyer.
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Franklin Roosevelt launched the New Deal with the Emergency Banking Act. This act closed all the banks to help stop all of the devastating failures.
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The Gold Reserve Act prohibited private ownership of gold and doubled its price. The act changed gold price history forever.
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The securities and exchange commission regulated the stock market. The FCC consolidated all federal regulation of telephone, telegraph, and radio communications.
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The Supreme Court declared the National Industrial Recovery Act unconstitutional. FDR launched more programs focused on the poor, the unemployed, and farmers.
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Texas experienced record-breaking temperatures of 120 degrees. Throughout the year, the heat wave directly killed 1,693 people.
Another 3,500 people drowned while trying to cool off. FDR raised the top tax rate to 79%. The economy grew 12.9%. Unemployment shrank to 16.9%. Prices rose 1.4%. The debt grew to $34 billion. -
FDR began his second term. He launched a third New Deal. The Wagner-Steagall Act funded state-run public housing projects. The Bonneville Power Administration delivered and sold power from the Bonneville Dam. The Farm Tenancy Act provided loans for tenant farmers to buy farms. The Farm Security Administration replaced the Resettlement Administration.
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In 1938, FDR abolished mark to market accounting. Some experts believed it forced many banks out of business. The rule forced banks to write down their real estate as values fell. FDR's new rule allowed them to keep these assets on their books at historical prices. The economy started to grow again. The Great Depression was over.
For the year, the economy shrank 3.3%. Unemployment rose to 19%. Prices fell 2.8%. The debt remained steady at $37 billion. -
The drought returned. Louisiana experienced record temperatures.
The Federal Security Agency was launched to administer Social Security, federal education funding, and food and drug safety.
