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How Did The New Deal Lead Up To The Great Depression

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The Great Depression was the longest economic downturn in the western industrialized world. It began on October 29th, 1929 (also know as Black Tuesday) due to the stock market crash, ending the “Roaring Twenties” and beginning the Great Depression. The stock market crash created panic on Wall Street and destroyed most people’s life savings. The stock market crash was a very unexpected occurrence. The Roaring Twenties being a time of economic prosperity, many people had a ton of money invested in stocks. Since so many people invested their money, the loss of money on October 29th was horrendous and totally abrupt. People gathered on the street in shock that soon turned to complete panic as the banks collapsed. In the thirties…show more content…
Roosevelt. Unlike Hoover, Roosevelt acted quickly to resolve the disaster at hand. The government issued a series of programs called the New Deal to try to end suffering throughout America quickly. First, he issued a four-day bank holiday to stop people from taking their money out of banks. He told citizens to put their money back in the bank and within a month almost three quarters of the banks reopened. Next, the president issued an act allowing the government to build dams to produce cheap hydroelectric for families. Then, congress passed a bill paying farmers to keep their fields uncultivated so there would not be extra produce and in order allow prices to rise. Although the efforts to stop the depression were great, unemployment was still consistent. The Second New Deal was passed and it created the Works Progress Administration that gave jobs to the unemployed. After, the Social Security Act was passed so people could set up unemployment insurance. FDR became the only president to be elected for office four times because of his tremendous programs and policies set up to solve the great depression. The Depression ended in the early 40’s and in 1941 America entered into World War
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