Franklin D. Roosevelt 's New Deal

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The Great Depression began very soon after the stock market crashed in October of 1929. It was an event that shook the entire world economically and would take many years to recover from. Many Americans were left unemployed and in debt. Even farmers could not afford to harvest their crops and food was left to rot while there were people starving. It was worldwide chaos. People did not trust in banks or the paper dollar. It was Franklin D. Roosevelt’s New Deal that would begin to pull the economy from the pits. A second New Deal and pre-war production would also aide in the regrowth of the American economy. In the summer of 1929, America was in a post-war recession following WWI. Consumer spending began to decrease and production of goods began to slow down as well. Historically known as Black Thursday, October 24, 1929, stocks in the U.S. market began to plummet. Investors frantically traded 12.9 million shares that day. On October 29th, Black Tuesday, investors traded an additional 16 million shares. Many shares lost their value and investors who invested with borrowed money were left with nothing. Stock prices remained in a continuous decline for the next three years in the United States. By 1932, stock prices were at 20% of the value that they were at in 1929. The lack of consumer spending eventually led to decreased production. In turn, many companies began to lay-off their employees. For many employees that still had a job, their wages were cut. Americans were in a position where they had to make purchases on credit, pushing them deeper and deeper into debt. There was an increase in home foreclosures and other repossessions. The condition of the American economy continued to deteriorate. Banks continued to... ... middle of paper ... ...rmany and Italy then declared war on the U.S. The preparation for war, production of war materials, and necessity for more troops opened the door to many jobs and increased production. The U.S. was on its way back to a financial boom. The Great Depression was an era of worldwide panic which started in the U.S. due to decreased production. There was a chain of reactions starting with the stock crash of 1929. Banks went under and people lost jobs and went further into debt. President Hoover unsuccessfully attempted to fund banks in order to fund companies so they could re-hire employees. Ultimately, in order to pull away from the recession, it took a new president that could create programs that would create new jobs and restore the public’s faith in the federal government. It also took mass production to gear up for a new war against Japan, Germany, and Italy.
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