Causes Of The Great Depression

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Home The Great Depression:A Conflict Over An Economic Downfall THE GREAT DEPRESSION CAUSED EXTREME POVERTY AND JOB LOSS THROUGHOUT AMERICA DURING THE 1930'S. THIS ECONOMIC DOWNFALL LED TO THE ABANDONMENT OF THE GOLD STANDARD, FDR'S NEW DEAL PROGRAMS, AND AN INCREASED SIZE OF THE FEDERAL GOVERNMENT. ALTHOUGH THESE METHODS HELPED COMBAT THE DEPRESSION THE UNITED STATES WOULD NOT GET OUT OF THE DEPRESSION UNTIL WWII.Sophia Bosi Junior Division Individual Website Total Words On Website:1,035 words Process Paper: 367 words Before the Depression The government before the Depression Before the Great Depression, the average American had little contact with the federal government besides the post office. The policies and actions of the Federal government…show more content…
The Great Depression was an economic slump in the 30's. During the Depression the unemployment rate was extremely high, a lot of America was in poverty and many banks were failing. This conflict affected almost everyone in some way. throughout the Depression around 9,000 banks failed and in the year 1933, which was the worst year for the Depression, around $140 Billion dollars were lost through bank failures. Many things were done to help combat the Depression such as abandonment of the gold standard, FDR's New Deal programs and and increased size of the Federal government. Events that led to the Great Depression The main event people think of is the Stock Market crash of 1929. The stock market crash was one of the major causes of the Depression. Within two months of the crash stockholders lost more than $40 billion dollars. During the 1930s over 9,000 banks failed. People lost their savings due to the bank deposits being uninsured. Banks that hadn’t failed almost completely stopped giving out loans. One event that led to the Great Depression that was not a direct cause was the Dust Bowl that occurred in the Mississippi Valley was so large that people could not pay their taxes or other debt they had, which caused them to have to sell their farms for no profit for themselves. People also stopped purchasing items which led to a reduction in the number of items being made and a cutback on staff. The unemployment rate rose 25% which…show more content…
He was elected because of his New Deal programs and how he presented them to Americans. Although his plans were discussed briefly Americans had to make a choice to elect either Herbert Hoover, whose attempts to get out of the depression were unsuccessful or Franklin Roosevelt, who made it clear what his programs would do and how they would help the people. Roosevelt was elected and the New Deal began to fall into place. The New Deal received quite a bit of criticism from both democrats and republicans. This was because they believed in the conservation of the federal government. Around 1938 the New Deal lost quite a lot of steam due to political mistakes. They were trying to expand the membership of the Supreme Court this was one reason it lost steam. The other reasons include that funding was reduced in 1937 which cause the economy to fall into another recession and in 1938 more money was paid to what was happening overseas. Two important New Deal programs were the FDIC and the SEC. The FDIC was stands for Federal Deposit Insurance Corporation. The FDIC's job was to prevent people from losing money if their bank was to fail. The SEC stands for Securities and Exchange Commission. The job of the SEC was to regulate the stock market and protect investors against
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