How Did President Roosevelt's New Deal Prevent The Great Depression?

383 Words2 Pages

he Great Depression was one of the hardest times in American history. It began on October 29, 1929, which was the year of the Stock Market Crash. At this time stock prices were rising, banks were failing, unemployment was beginning, and so much more. The depression caused 13 to 15 million Americans to be unemployed! As the stock market crashed, a lot of consumers' confidence began to vanished. The downturn in spending and investment led factories and other businesses to slow down production and construction and begin firing their employees. Much of the devastation during the depression was caused by the Dust Bowl in the western states. The dust storms destroyed a lot of produce and harvest from the farmers. Without the produce from the farmers, a lot of businesses in the cities lost their incomes and ended up losing their jobs. Not only did factory workers lose their …show more content…

This deal included ways to stop the decrease of jobs, and to make bank deposits safer and so much more. Many new companies evolved during the New Deal. Companies such as the Tennessee Valley Authority (TVA), which built dams and hydroelectric projects to control flooding, and provide electric power to the Tennessee Valley region of the South. The Works Project Administration, a permanent jobs program that employed 8.5 million people from 1935 to 1943. After showing early signs of recovery in the spring of 1933, the economy continued to improve throughout the next three years, during which real GDP (adjusted for inflation) grew at an average rate of 9 percent per year. But in 1937, a sharp recession hit, caused in part by the Federal Reserve's decision to increase its requirements for money in reserve. Though the economy began improving again in 1938, this second severe contraction reversed many of the gains in production and employment and prolonged the effects of the Great Depression through the end of the

Open Document