history responses 6

Instructions: For response 1-2, respond thoughtfully. Just saying “I agree” or “I disagree” does not constitute a thoughtful response. They need to be substantive to promote further discussion, new ideas, or questions and are approximately 150-200 words (1 paragraph) in length. Short comments, such as “Good point,” information not applicable to the historical context of the assigned topic, and non-topic personal interactions do not apply.

RESPONSE 1

One of the fifteen major laws enacted during the first one hundred days of President Franklin Roosevelt’s administration was the Civil Works Administration, also known as the CWA. The Civil Works Administration was created to provide a “temporary job relief program” for the people at the time in order to reduce the significant unemployment rate in the United States of America during his time in office (Corbett, 2014, p 766). After the stock market crash in 1929 and President Hoover’s presidency, the United States of America was in a major economic crisis. Millions of people lost their jobs because small, medium and large companies were all closing down. The Civil Works Administration, created by President Franklin Roosevelt, was a short-lived program during the winter of the year 1933 to the year 1934. The United States government created a lot of job opportunities for unemployed workers to work on. Those jobs were mainly consisting of construction works from constructing bridges, buildings, railroads, and other works. This temporary program only held for a couple of months but helped a couple of million people to get back on their feet, and have a job that can support themselves and their family. The Civil Works Administration helped to alleviate the hardships faced by the nation of the United States of America because it provided jobs for people, although they are just temporary. However, temporary jobs gave people sufficient money, and when everyone regained some of the money that they had lost over the years of the Great Depression, everything was moving back to the state of a stable economy. During a time of economic crisis, the average citizens of a country will lose out on a lot of money. At those times, the country’s government will have to be able to provide sufficient incomes for those who lack the resources. Otherwise, a lot of people will be broke and have a diminished lifestyle afterward.

RESPONSE 2

Government mortgages that allow homeowners to keep their homes. Per Roosevelts orders, starting in 1933 the HOLC or Home Owners Loan Corporation was put in place to rescue home owners from losing their homes and forced into foreclosures due to the 1929 crash. Because of the great increase of unemployment, so many were unable to maintain their home payments. This act was put into place to stop the abundance of home foreclosures and to stop the demise of the housing industry. There were stipulations in order to qualify for this program, they were: it could not be farmland, there could not be more than four families in a home and was not greater than $20,000. “the HOLC would buy old mortgages from banks with government bonds that were financed by the Treasury and capital markets. By the HOLC’s final year in 1936, it had provided just over a million new mortgages, had lent out approximately $350 billion ($750 billion today), and by 1934 about one in five mortgages in America were owned by the corporation. (Blog Economy and Growth) Now that this act was put into place instead of mortgages having a high interest rate and not being able to pay it over an extended period of time, interest rates were lower and loans were paid over a 15 year amortization loan. The HOLC was authorized to make loans from June 13, 1933 through June 12, 1936. It is an estimated more than one million of these loans were generated costing up to$3.1 billion. Something that I found very interesting was, the average loan during this time was estimated at $3,039 which equates to about $52,00 today. Roosevelt’s new act allowed many homeowners to remain in their homes and establish new home loans. This as well allowed banks who originally owned these home loans relief. They were not going to lose money on their end. Shortly after this act, a 30 year home loan was implemented which promoted the housing boom.