Great Depression Dbq

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The Great Depression was caused by various flaws in the economy, but was eventually ameliorated by Franklin D. Roosevelt and the government taking action in multiple programs and other solutions that are still around today. The United States had switched to a consumer economy; therefore, there was a drastic increase in buying. People bought consumer goods, such as makeup, refrigerators, etc. Consequently, the United States had a secure economy, in addition to the strong stock market due to people buying shares in stocks within companies, as well as banks and other corporations investing in them. The U.S. government was allowing this to occur because Calvin Coolidge, the previous president before President Herbert Hoover, was pro-laissez faire …show more content…

People could go into stores, not having cash; hence, they could purchase anything they desired on credit. Their mindsets were “buy now, pay later”. The United States’ consumer economy and the introduction of installment plans led to the economy’s massive crash. People took out loans and relied on credit to purchase products. When people did not have money, they took out loans. Although, people could not pay these loans back, which caused banks to run out of money and eventually thousands of banks to go bankrupt. Buyers did not demand as many consumer goods after inflation, which is when money is no longer worth its value, because they were not being paid decently. People buying on credit did not have the money on them at the time of their purchases. It was easy for people to buy products and not think about having to pay the prices later. Therefore, people who did not have the money to pay for the goods they bought went into massive amounts of debt. Overproduction was also a major economic problem. Products were being overproduced because people were buying on credit and reading advertisements. Companies had to sell products for less than they were worth making because the supply was very high. Also, companies were making less money than they were …show more content…

World War II helped to end the United State’s economic problems. Fundamentally, preparing for the war helped to end the U.S.’s financial troubles. In 2008, the United States almost experienced financial ruin again, as the economy was failing once again. Had it not been for the programs that lasted, the U.S. could have went into another depression. The government played a vital role in the economy, which helped to end the Depression. Withal, the government attempted to put more money into the economy, examine the supply and demand on products in the economy, and decrease labor strikes. One of the programs that persevered was the Federal Deposit Insurance Corporation; it remained in order to protect money and keep trust in banks. The government also continued to protect workers rights and enforce the Social Security Administration. The Social Security Administration endured, as it helped the elderly and those hurt on the job; they could put money into the fund while working, and then when retired or injured, they could collect money. Likewise, the Wagner Act prevailed, as it legalized collective bargaining and closed shops. Also, the Fair Labor Standards Act lasted, as it limited discrimination and increased wages. Similarly, the National Labor Relations Board persisted, as it watched labor unions and

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