The Great Depression and the New Deal

1000 Words4 Pages
Following WW I in the 1920’s, there was a decade of an economical explosion. The post-war era brought about many changes. Businesses showed great profits, migration to big cities of industrial companies occurred with the hopes of making a better life, people were given the opportunity to purchase things on credit, while others borrowed money making poor decisions buying high priced stocks with the intention of selling stocks for a profits to repay lenders. When Black Tuesday occurred on October 29, 1929, this marked the beginning of the Great Depression that left devastating economic hardships for the American people. Although it was always my belief that the stock market crash was the sole contributor of the Great Depression, there was actually a number of contributing factors that ultimately led to the great crash. The economic boom after the war made it possible for companies to become more efficient with manufacturing goods. The wealthy were buying up the new technologies and began stockpiling the goods, once this occurred companies had to cut back on production. Then the wealthy eventually stopped buying which led to further stockpiling. The working class started losing jobs because of the decrease in production and soon there was a decrease in buying, which started a vicious cycle of further job cuts. The banking industry made just as many mistakes with lending money freely, especially to foreign countries in an attempt to rebuild after the war. To make matters worse, the U. S. and other countries that had industries charged high import taxes on good that were offered for sale. These taxes prevented counties from selling the goods they needed to earn the money to repay loans to the U.S. banks... ... middle of paper ... ... enthusiasm restored confidence in the American people and in 1933 he was nominated the 32nd President of the United States. FDR got straight to work calling a session with congress to begin drafting his Dew Deal legislation in his first one hundred days of office. As businesses started to fail the government attempted to protect them by creating the Smoot-Hawley Tariff, but this led to less trading between countries. New deal programs included five major farm laws to get farmers back on their feet. The agricultural adjustment act, civilian conservation corm, farm security administration, soil conservation services and rural electrification act. Works Cited Unfinished Nation, page 556
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