How Did The Great Depression Affect The Economy

The American economy had been greatly affected by this depression because of the decrease in wealth and resources of the country. This later led to massive setbacks within each portion of society. For example, “drastic declines in output, severe unemployment and acute deflation” (“Great Depression”). The Great Depression led to the extreme downfall in not only the American economy but also every other country who relied on American goods. This shows how it affected the economy significantly. Next, the nation also was in a considerable amount of debt due to the market crash. “The United States experienced widespread banking panics” (“Great Depression”). A banking panic happens when many depositors all lose confidence in the banks wealthiness

To start, President Hoover did little to try and bring the nation back together. He is well known to Americans as the man who let the citizens starve and suffer during the Depression. However when Franklin Delano Roosevelt took office, he wanted to help this country out of his own will. FDR started with creating many resourceful ideas. For example, “New Deal policies and programs arose out of a desire to meet the "the R's": relief, recovery, and reform” (Michon). As Hoover seceded from office, Franklin D. Roosevelt had entered with great ambition and positive concepts. The first thought was this support program to help the United States get back on its feet. Next, the New Deal was an important part to rebuilding the nation. Some of its goals were to first help the people most in need, then to support economic growth, and finally, to remake the system to protect average Americans from economic hardship in the future (Michon). This plan had many important aspects that would later on, help bring America out of the Depression. Lastly, when the nation had entered the World War, the mobilization of immense military forces around the world provided a profitable market for war material. The markets contained anything from weapons to planes, battleships and uniforms and bullets (Michon). The involvement of the United States in World War II had ultimately led to the reunification of America, because most American

Franklin D. Roosevelt’s New Deal did include a number of new federal programs aimed at generating recovery. For example, “Roosevelt’s first goal was to end the banking crisis” (Rung). President FDR later passed laws to close banks, allowing the government investigators to check every single bank’s records and to reopen only those banks that were in strong financial condition. Next, another law was passed to take a step further and help the farmers produce more. “The Agricultural Adjustment Administration (AAA) created in May 1933, was a centerpiece of the Hundred Days” (Rung). The AAA looked to raise farm prices by limiting production. This important law gave farmers “benefit payments” so they would not produce as much agriculture as they had before the great depression. Lastly, the government officials passed an act protecting the investments made into stock markets. For instance, “Congress passed the Securities Act of 1933” (Rung). This new law helped regulate the stock market. It required firm issuing new stocks to give investors full and accurate financial information. As one can see, many Americans valued the attempt of getting the nation running sufficiently as it had