What were 3 long term effects the Great Depression?

Answer 1

Answer given in a bullet list so it can be amended:

• Fractal Monetary (currency/money) System: The government removed gold back currency because of market manipulation that caused the Federal Reserve Note to devalue (inflation). The Parity act made all money the same value, in the United States, even though the Federal Reserve Note (FRN) only held 1/2 of that value upon issue in a world market. Foreign investors would redeem FRN's in their country for 1/2 of its face value, then bring the money to the USA in the form of a "loan" and require its repayment in Gold backed currency; essentially making 4 times their original investment. This caused "inflation" (currency devaluation) as the FRN lost its value in the world market.
• Social Welfare Systems: These systems included: Welfare, Social Security Retirement, Unemployment, Workers Compensation, Medicare, etc. All "Title 42" programs (military benefits, house / property loans).

  Under the US Constitution the Government cannot take anything of value without paying for it. At the time the US Government admitted it was "broke" (IE: had no money, see FDR's speech c.1932) but they took everyone's gold. Banks held the gold but US Citizens held the deposit notes (gold backed bearer bonds). So as a simple translation, the public held all the gold, the banks just stored it for us.

  Because of this the government had to give the american public value in kind for the money it took, and "Title 42" is how they did it, IE: Social Welfare Systems.

• [The] Federal Deposit Insurance Corporation (FDIC): This quasi government corporation was created to restore public confidence in banks. Because of the market manipulation mentioned above, banks failed and common investors as well as deposit holders lost their money (gold). The FDIC ensures, insures, deposits in banks so that depositors will not loose that deposit.

  Understanding the banks is complicated but I will attempt to show a simplified example. If you go to the bank and want to borrow $100 dollars, the bank cannot loan you "my" $100 dollars because it is mine and I may want to use it at any time, so they have to loan you the money from investors; people who give the bank money specifically for loans (this is the Federal Reserve in 99% of all cases). This rule is enforced by the FDIC who "Insures" the loan at apx. 94% of its face value (so investors are repaid from this insurance if the loan fails).

• "Public Works:" such as the Army Corp. of Engineers (all rivers, lakes and waterways), National Parks Service, National Highway Service (DOT, department of transportation). The Internal Revenue Service (the former IRS was temporary agency until 1929).