The Great Depression

882 Words2 Pages
bulb-icon

Recommended: Great depression of the 1920's

The Great Depression in the United States began on October 29, 1929 when the American stock market crashed after it had been steadily rising for nearly a decade. It took the nation into its worst economic state yet. Trust in banks failed, and the country’s money supply was depleted; companies went bankrupt, and as a result, began terminating many workers. By 1932, at least 25% of America’s workforce was unemployed. Since President Herbert Hoover (1929-1933) refused to believe it was the federal government’s problem to handle, it was pushed onto President Franklin Roosevelt when he took office in 1933. He acted quickly on the matter by creating the “New Deal”. The New Deal was a series of programs created in the United States between 1933 and 1936. It was created to stabilize the economy and provide jobs to those who were suffering. They included laws passed by congress and presidential orders during President Roosevelt’s first term. The programs focused on relief, recovery, and reform. Relief was for the unemployed, recovery of the economy to normal levels, and reform of the financial system to prevent another depression.
The Economy Act was passed on March 14, 1933. It was supposed to balance the “non-emergency” federal budget by cutting government employee salaries and pensions to veterans by 15%. It saved America $500 million per year and reassured the People that President Roosevelt was fiscally conservative. Roosevelt said there were two budgets: the “regular” federal budget, which he balanced himself, and the “emergency” budget, which was needed to get out of the depression; it was constantly imbalanced. He was originally in favor of balancing the budget, but he had to start running spending deficits in order to fund all t...

... middle of paper ...

...It set the framework for the current United States welfare system. President Roosevelt insisted that it should be funded by payroll taxes contrary to the general fund. This was the first time that the federal government took responsibility for the fiscal security of the elderly, the temporarily unemployed, subordinate children and the maimed.
All of the programs President Roosevelt created were great, but I find the Social Security Act to be the most important. It reached out to EVERYONE, not a specific group of individuals. Also, it made good use of the money that citizens had to pay. So, with the nation being in such a pit, the People could feel more assured that none of its money was being wasted on frivolous things. However, the Economy Act of 1933 also insured this. Some of the programs worked better than others, but in the end, it all worked out for the best.

Show More
Related

  • FDR Election DBQ Essay

    524 Words  | 2 Pages

    In the Roaring Twenties, people started buying household materials and stocks that they could not pay for in credit. Farmers, textile workers, and miners all got low wages. In 1929, the stock market crashed. All of these events started the Great Depression. During the beginning of the Great Depression, 9000 banks were closed, ending nine million savings accounts. This lead to the closing of eighty-six thousand businesses, a European depression, an overproduction of food, and a lowering of prices. It also led to more people going hungry, more homeless people, and much lower job wages. There was a 28% increase in the amount of homeless people from 1929 to 1933. And in the midst of the beginning of the Great Depression, President Hoover did nothing to improve the condition of the nation. In 1932, people decided that America needed a change. For the first time in twelve years, they elected a democratic president, President Franklin D. Roosevelt. Immediately he began to work on fixing the American economy. He closed all banks and began a series of laws called the New Laws. L...

    Read More

  • Franklin Delano Roosevelt's Impact On American Society

    1672 Words  | 4 Pages

    When he took office, 'the nation was in the fourth year of a disastrous economic crisis' and 'a quarter of the labor force was out of work [and] the banks had been closed in thirty-eight states' (Greenstein 16). In order to remedy these problems and restore trust in the government, FDR enacted the New Deal in the Hundred Days legislation. Many of the programs created in the legislation are still around today in some form, continuing to show FDR's influence on the modern presidency. Such programs as the Works Progress Administration and The Tennessee Valley Authority helped poor Americans unable to get jobs or afford the luxury of electricity. These programs were some of the major reasons FDR was so popular during his terms in office. Also created was the Federal Deposit Insurance Corporation, which insured the money in banks. This helped because then in the case of another bank crisis, people's money would not be lost. The FDIC was another reason, along with FDR's rhetoric, that people began to trust the banks and government again. One major policy FDR began was social security, which is still around today. When creating this idea of social security, it is clear he meant it to help the people, but also that he meant it to be permanent. FDR wanted, and received, a lasting effect on the government. By designing and implementing so many new programs and policies to help Americans, FDR showed what

    Read More

  • FDR: The Greatest President

    1171 Words  | 3 Pages

    President Roosevelt initiated the only program that could pull the U.S. out of the Great Depression. Roosevelt’s New Deal got the country through one of the worst financial catastrophe the U.S. has ever been through. Diggerhistory.info biography on FDR states,” In March 13 million people were unemployed… In his first “Hundred Days”, he proposed, and Congress enacted, a sweeping program to bring recovery to business and agriculture, relief to the unemployed and those in danger of losing their farms and homes”(Digger History Biography 1). Roosevelt’s first hundred days brought relief to the unemployed. He opened the AAA (Agriculture Adjustment Administration) and the CCC (Civilian Conservation Corps.). The administration employed many young men in need of jobs all around the country. Roosevelt knew that the economy’s biggest problem was the widespread unemployment. Because of Roosevelt’s many acts and agencies, lots of young men and women around the country were getting jobs so the economy was healing. According to Roosevelt’s biography from the FDR Presidential Library and Museum, “Another Flurry of New Deal Legislation followed in 1935, including the WPA (Work Projects Admi...

    Read More

  • Assessment of the Success of the New Deal

    1112 Words  | 3 Pages

    After the depression America was in a state mass hysteria as the Wall Street crash had caused a massive crisis among the American public because the impact of the wall street crash caused 12 million people out of work, it also caused 20,000 companies to go bankrupt and there were 23,000 suicides in one year because of the wall street crash this was the highest amount of suicides in a year ever. The main aims of the new deal were Relief, Recovery and Reform, Relief was for the Homeless and Unemployed, recovery was for Industry, Agriculture and Banks and Reform was to prevent the depression form happening again. The structure of The New Deal was the First Hundred Days (1933) where he would focus on relief by helping the homeless and unemployed and recovery by helping industry, agriculture and banks, there was also the Second New Deal where he would focus on Reform, preventing the depression from happening again. Roosevelt believed that the government should help those people worst affected by the depression, this is why he created over 50 alphabet agencies to deal with the problems caused by the depression, this is why he introduced the new deal because he wanted to ease the pressure

    Read More

  • Roosevelt's Three Influential Speeches

    997 Words  | 2 Pages

    As the president of the United States, Franklin D. Roosevelt worked hard to provide safe, happy, and affluent life to American people. Many problems such as unemployment, poor banking and systems were caused by the Depression. In order to approach the resumption of the nation, Roosevelt planed to make changes. Some changes took place in the New Deal’s goals between the time of Franklin D. Roosevelt’s inaugural address in 1933, his campaign speech at Madison Square Garden in 1936, and his proposal for an Economic Bill of Right in 1944 did effectively bring people better conditions for their life, reformation of their welfare (for vulnerable people), and hope for freedom.

    Read More

  • The Main Causes Of The Roosevelt New Deal And The Social Security Act

    825 Words  | 2 Pages

    Roosevelt attempted to stop the depression was to present a bill to the Congress called the New Deal. In the New Deal there were different types of programs in which to help Americans from getting jobs and also getting financial assistance from the government. The Social Security Act was the main element for Roosevelt New Deal bill. The Social Security Act was made for helping the elderly, to give people money when they are unemployed, and to give grants to states to provide people with health care. There was a great support for the Social Security Act that it was able to be passed by the Congress and the House of Representatives and it was later signed into law at August 14, 1935 by the President Roosevelt. One of the main reasons this law was popular was because of its immediate support that it would give to people who are in need and would help from avoiding another economic depression. While some people were against the law because they think this act was a socialist program and people would stop working because they are getting support from the government.

    Read More

  • Argumentative Essay On The New Deal

    946 Words  | 2 Pages

    In response to the Great Depression, the New Deal was a series of efforts put forth by Franklin D. Roosevelt during his first term as United States’ President. The Great Depression was a cataclysmic economic event starting in the late 1920s that had an international effect. Starting in 1929 the economy started to contract, but it wasn’t until Wall Street started to crash that the pace quickened and its effects were being felt worldwide. What followed was nearly a decade of high unemployment, extreme poverty, and an uncertainty that the economy would ever recover.

    Read More

  • The Great Depression

    944 Words  | 2 Pages

    Great Depression was one of the most severe economic situation the world had ever seen. It all started during late 1929 and lasted till 1939. Although, the origin of depression was United Sattes but with US Economy being highly correlated with global economy, the ill efffects were seen in the whole world with high unemployment, low production and deflation. Overall it was the most severe depression ever faced by western industrialized world. Stock Market Crashes, Bank Failures and a lot more, left the governments ineffective and this lead the global economy to what we call today- ‘’Great Depression’’.(Rockoff). As for the cause and what lead to Great Depression, the issue is still in debate among eminent economists, but the crux provides evidence that the worst ever depression ever expereinced by Global Economy stemed from multiple causes which are as follows:

    Read More

  • The Great Depression

    915 Words  | 2 Pages

    October 29th, 1929 marked the beginning of the Great Depression, a depression that forever changed the United States of America. The Stock Market collapse was unavoidable considering the lavish life style of the 1920’s. Some of the ominous signs leading up to the crash was that there was a high unemployment rate, automobile sales were down, and many farms were failing. Consumerism played a key role in the Stock Market Crash of 1929 because Americans speculated on the stocks hoping they would grow in their favor. They would invest in these stocks at a low rate which gave them a false sense of wealth causing them to invest in even more stocks at the same low rate. When they purchased these stocks at this low rate they never made enough money to pay it all back, therefore contributing to the crash of 1929. Also contributing to the crash was the over production of consumer goods. When companies began to mass produce goods they did not not need as many workers so they fired them. Even though there was an abundance of goods mass produced and at a cheap price because of that, so many people now had no jobs so the goods were not being purchased. Even though, from 1920 to 1929, consumerism and overproduction partially caused the Great Depression, the unequal distribution of wealth and income was the most significant catalyst.

    Read More

  • The Great Depression

    1204 Words  | 3 Pages

    The Great Depression was a period, which seemed to go out of control. The crashing of the stock markets left most Canadians unemployed and in debt, prairie farmers suffered immensely with the inability to produce valuable crops, and the Canadian Government and World War II became influential factors in the ending of the Great Depression.

    Read More

  • New Deal Dbq

    1545 Words  | 4 Pages

    Coming into the 1930’s, the United States underwent a severe economic recession, referred to as the Great Depression. Resulting in high unemployment and poverty rates, deflation, and an unstable economy, the Great Depression considerably hindered American society. In 1932, Franklin Roosevelt was nominated to succeed the spot of presidency, making his main priority to revamp and rebuild the United States, telling American citizens “I pledge you, I pledge myself, to a new deal for the American people," (“New” 2). The purpose of the New Deal was to expand the Federal Government, implementing authority over big businesses, the banking system, the stock market, and agricultural production. Through the New Deal, acts were passed to stimulate the economy, aid banks, alleviate environmental problems, eliminate poverty, and create a stronger central government (“New”1).

    Read More

  • FDR DBQ

    1167 Words  | 3 Pages

    The Great Depression was one of the greatest challenges that the United States faced during the twentieth century. It sidelined not only the economy of America, but also that of the entire world. The Depression was unlike anything that had been seen before. It was more prolonged and influential than any economic downturn in the history of the United States. The Depression struck fear in the government and the American people because it was so different. Calvin Coolidge even said, "In other periods of depression, it has always been possible to see some things which were solid and upon which you could base hope, but as I look about, I now see nothing to give ground to hope—nothing of man." People were scared and did not know what to do to address the looming economic crash. As a result of the Depression’s seriousness and severity, it took unconventional methods to fix the economy and get it going again. Franklin D. Roosevelt and his administration had to think outside the box to fix the economy. The administration changed the role of the government in the lives of the people, the economy, and the world. As a result of the abnormal nature of the Depression, the FDR administration had to experiment with different programs and approaches to the issue, as stated by William Lloyd Garrison when he describes the new deal as both assisting and slowing the recovery. Some of the programs, such as the FDIC and works programs, were successful; however, others like the NIRA did little to address the economic issue. Additionally, the FDR administration also created a role for the federal government in the everyday lives of the American people by providing jobs through the works program and establishing the precedent of Social Security...

    Read More

  • Was the New Deal a Good Deal for America?

    609 Words  | 2 Pages

    In his presidential acceptance speech in 1932, Franklin D. Roosevelt addressed to the citizens of the United States, “I pledge you, I pledge myself, to a new deal for the American people.” The New Deal, beginning in 1933, was a series of federal programs designed to provide relief, recovery, and reform to the fragile nation. The U.S. had been both economically and psychologically buffeted by the Great Depression. Many citizens looked up to FDR and his New Deal for help. However, there is much skepticism and controversy on whether these work projects significantly abated the dangerously high employment rates and pulled the U.S. out of the Great Depression. The New Deal was a bad deal for America because it only provided opportunities for a few and required too much government spending.

    Read More

  • The Pros and Cons of Roosevelt's New Deal

    1214 Words  | 3 Pages

    The era of the Great Depression was by far the worst shape the United States had ever been in, both economically and physically. Franklin Roosevelt was elected in 1932 and began to bring relief with his New Deal. In his first 100 days as President, sixteen pieces of legislation were passed by Congress, the most to be passed in a short amount of time. Roosevelt was re-elected twice, and quickly gained the trust of the American people. Many of the New Deal policies helped the United States economy greatly, but some did not. One particularly contradictory act was the Agricultural Adjustment Act, which was later declared unconstitutional by Congress. Many things also stayed very consistent in the New Deal. For example, the Civilian Conservation Corps, and Social Security, since Americans were looking for any help they could get, these acts weren't seen as a detrimental at first. Overall, Roosevelt's New Deal was a success, but it also hit its stumbling points.

    Read More

  • Compare And Contrast Hoover And Fdr

    1036 Words  | 3 Pages

    As a result, the Federal Government had/has never been more powerful, and we are more socialistic today than ever.   One of the most potent changes that came was the Social Security Act of 1935, and still lives today . 10  Essentially many of today current welfare programs would either sprout from the new deal or as inspiration later on.   It may not have ended the depression directly, however it did indeed secure a safer life for everyone who would come after.  Perhaps these policies can be credited to stopping  our great recession from turning into another

    Read More

More about The Great Depression

Open Document