Compare And Contrast The Great Depression And The New Deal

Better Essays
The Great Depression and the New Deal
The Great Depression of 1929 to 1940 began and centered in the United States, but spread quickly throughout the industrial world. The economic catastrophe and its impact defied the description of the grim words that described the Great Depression. This was a severe blow to the United States economy. President Roosevelt’s New Deal is what helped reshape the economy and even the structure of the United States. The programs that the New Deal had helped employ and gave financial security to several Americans. The New Deals programs would prove to be effective and beneficial to the American society.
The Smoot Hawley Tariff Act was a United States law that was enacted in June 1930. It caused an ffs in all sectors
…show more content…
The shares values had fallen and this left people panicking. Many businesses closed and several of the banks did not last because of the businesses collapsing. Many people lost their jobs because of this factor. Congress passed Roosevelt’s Emergency Banking Act, which helped reorganize the banks and closed the ones that were insolvent. Then three days later he urged Americans to put their savings back in their banks and by the end of the month basically three quarters of them reopened. Many people refer to the Banking Act as the Glass Steagall Act that ended up prohibiting commercial banks from engaging in the investment business and created the Federal Deposit Insurance Corporation. The purpose of this was to get rid of the speculations in securities making banking safer than before. The demand for goods were declining, so the value of the money was…show more content…
This made the government spend a lot of their money on programs to help recover all the lost jobs and to give businesses the confidence to spend money also. When the businesses saw that the government was actually willing to spend money it gave the business owners confidence to spend their money. Once the money started circulating around the economy would start slowly growing. The New Deal Programs were diverse relief schemes such as the Tennessee Valley Authority (TVA), Public Works Administration (PWA), Civil Works Administration and the National Recovery Administration (NRA).
One step for people with unemployment came called the Civilian Conservation Corps (CCC). This was a program that was enacted by Congress to help bring relief to young men between the ages of 18 and 25. The CCC had somewhat of a military style that enrolled the jobless young men in work camps across the country. In the 1930s there was approximately 2 million men who took part in this program. These young men participated in a wide variety of conservation projects. They received clothing and food and they paychecks that they received were sent home to their
Get Access