New Deal Dbq

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The Great Depression was a period in which the economy was not doing well. It left many people unemployed and struggling to meet their needs. It began with the stock market crash of October 1929 which caused a rapid decline in stock prices and caused panic across the United States. While the stock market crash only affected a small portion of Americans who owned stock, it also signaled an economic crisis in the future. During this, there was a significant drop in production, and millions of citizens lost their jobs and homes. This was a difficult time for families to live comfortably and it also had a big impact on the global economy. In response to this, President Franklin D. Roosevelt presented the New Deal, which was a series of policies that aimed to eliminate the issues that the Great Depression brought upon citizens. The New Deal …show more content…

The large creation of jobs for citizens also resulted in more people having their spending money back. In the article it states, “It encouraged recovery by helping resolve the imbalance between underconsumption and overproduction that was, in the eyes of New Dealers, one of the main causes of the depression” (Fasulo). Employment would create solutions to many of the issues that people believed were the root causes of the Great Depression. The creation of jobs almost created a domino effect due to employment generating income for people which also increased consumer spending. It helped stabilize the uneven balance between consumption and production, which helped provide aid to the economy in terms of the depression. Employment ultimately aided the economy in returning back to its former state by reducing unemployment steadily and settling the imbalance the Great Depression generated. In addition, the New Deal’s vast creation of jobs helped end the Great Depression by fixing the issues that were the main causes of the

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