Third, he increased taxes. In the first days of his administration, they passed 15 major pieces of legislation. Three things stand out as the worst that could be done.
The first day on the job, he declared a bank holiday and closed the banks. To prevent runs on banks supposedly. Many never reopened and millions lost their life savings. There was no money available. Imagine what would have happened to our economy had Bush done that during the housing crisis or Trump with the advent of the COVID pandemic. They could instead, have limited withdrawals as banks did during the panic of the late s. Canadian depression bank failures?
If fewer commodities were raised and sold, then prices would go up they thought. The solution? Government would decide how much farmers could raise. Third, there was the National Industrial Recovery Act NIRA with a National Recovery Administration NRA that essentially eliminated the free market and created government- controlled cartels to fixed prices and production while restricting competition.
They established codes affecting 22 million workers. Mussolini was impressed. Roosevelt wanted more compliant judges and tried to pack the Supreme Court. People have sure asked many questions about alternate history, but If you have then shut up! I'm here arguing you haven't and therefore you haven't. In this series of blogs I'll go over what I think would have happened if the Great Depression never happened on a global scale.
Let me first introduce to you how more or less the Great Depression is avoided. We find ourselves in The economic recession is almost here and the events continue as they did in our timeline. The London Exchange crashes as does the Wall Street. The Federal Reserve, unlike in our timeline, starts to watch over the banks as in this timeline the directors eventually listen to economists and other advisors. The New York Stock Exchange crashes. No major action is taken by world governments at this point.
Now we're in early and we reach our first problem in this alternate history narrative. That being US politics. We need to make sure that somehow the Smoot-Hawley Act doesn't pass.
This happens thanks to Hoover vetoing this act and standing by his ideals and pledges. This is, however, more of a stop to Hoover's legacy or career for the foreseeable future. The veto, although a safeguard against stupid tarrif policy, is sustained, but Hoover's Cabinet, just like it had threatened to do, resigned. His party becomes more hostile to him, this leads Hoover to appoint a Cabinet of in favour of more correct of an intervention than the one in our timeline. The Federal Reserve is mobilized to ensure the money supply does not shrink in this timeline, holding banks afloat.
The markets begin to rise again as international trade, while smaller than in , is still fairly concrete. Hoover, however, also makes many wrong decisions and bad interventions during his presidency. This singular veto, however, is able to sustain the US economy just enough below the waterline that it's occasionally able to breathe. This, however, doesn't mean everything is great now in the world. Many economies are hit harsh.
The British economy, while doing a bit better than the US economy, is not doing great either. Neither is the French or the German one. In addition the world enters a global recession that effects every country differently, but is destructive only to the biggest countries.
Thanks to the lack of teriffs the countries around the world continue to trade with each other and as a result the export-based economies are able to get through the recession within 1 to 2 years time. Our first destination is of course Weimar Republic. This is going to be a tough one indeed. Germany was falling into a recession already by Up to German history continues as it had continued in our timeline. American investments disappear overnight and the republic enters another era of further political turmoil.
Even though the recession quickly spread to Germany, the US also rescued the Germans, sort of, by allowing them to witness the Federal Reserve's moves that led to the rescue of banks, which were able to stay afloat at that point and limited recession's reach. This, however, doesn't change Germany's political stance for the foreseeable future.
His appointment happens just like it happened in our timeline. He was open to social questions, had financial and economic acumen and served as a front officer. This made him acceptable to all parties, including Hindenburg. Within his cabinet's first month he discloses to his allies in the German Labour Federation that his chief aim as Reichskanzler would be to liberate the German economy of the burden of paying reparation and foreign debt.
As he did in our timeline he becomes very unpopular with the policies required to help the country. Tight credit and rollback of wage and salary increases, internal devaluation, all of this is rejected by the Reichstag.
Therefore, President Hindenburg calls new elections in which the Grand Coalition loses majority. In this timeline, while Germany is in a terrible economic place, it's better than it was in our timeline. Hoover memorandum happens as does Lausanne Conference. We are now in The Austrian bank, Credit-Anstalt does not fall in this timeline as it is rescued sooner in this timeline by the Austrian government as a result of American handling of the situation.
This limited the reach of the recession further and Austria only narrowly avoided slipping into the deep recession, only experiencing a soft one. We're at the point of the presidential election. This also resulted in two major things. First one was Hindenburg's insistance on not running again, despite the Kamarilla's arguments. As he was leaving Hindenburg had one final request. Hindenburg agreed. NSDAP now embraced the government to an extend in their newspaper, however, Hitler kept running for the presidency.
While the entire government campaigned for Marx, Schacht, who had to keep quiet, was instead working to secure his independence of the NSDAP and he would do this by pulling Germany out of the recession. This law is in fact a change of policy in Easterner Aid. This distributed bunkrupt land to the unemployed and began to exterminate unemployment.
Prussian Junkers wealthy landowners were enraged. At this point the government was ruling by emergency decree for almost 3 years and Marx, while he disliked this policy, wanted to avoid a Nazi victory enough to keep excersizing this power. The communist paramillitaries and the SA remained banned in this timeline and thus violence did not escalate. Hindenburg's camarilla is over and the army is once again more or less powerless.
Roosevelt that aimed to restore prosperity to Americans. When Roosevelt took office in , he acted swiftly to stabilize the economy and provide jobs and relief The stock market crash of —considered the worst economic event in world history—began on Thursday, October 24, , with skittish investors trading a record A woman in ragged clothing holds a baby as two more children huddle close, hiding their faces behind her shoulders.
The mother squints into the distance, one hand lifted to her mouth and anxiety etched deep in the lines on The Great Depression was the worst economic downturn in modern history. As the economy boomed, new innovations allowed for more leisure The Dust Bowl was the name given to the drought-stricken Southern Plains region of the United States, which suffered severe dust storms during a dry period in the s.
As high winds and choking dust swept the region from Texas to Nebraska, people and livestock were killed and During the Great Depression, with much of the United States mired in grinding poverty and unemployment, some Americans found increased opportunities in criminal activities like bootlegging, robbing banks, loan-sharking—even murder. Organized Crime in the Prohibition Era The Lasting from to , the Great Depression was the worst economic downtown in the industrialized world. While no group escaped the economic devastation of the Great Depression, few suffered more than African Americans.
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Dust Bowl The Dust Bowl was the name given to the drought-stricken Southern Plains region of the United States, which suffered severe dust storms during a dry period in the s.
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