Economic Recovery Post-Depression: The New Deal

Only available on StudyMode
  • Download(s) : 530
  • Published : March 30, 2013
Open Document
Text Preview
Roosevelt's New Deal
The Great Depression started in the United states but spread into a worldwide economic down-turn. The stock market crash of 1929 caused Billions of dollars to be lost along with thousands of investors. It was the “deepest and longest-lasting economic downturn in the history of the Western industrialized world up to that time”(Stock Market Crash). Some say that this was a starting cause of the Great Depression. Over 20,000 banks failed. On average “one out of four”(Living New Deal) of Americans were out of work by 1933. If people aren't working families go hungry. Some had it harder in the Dust Bowl. In Colorado, Kansas, Oklahoma, New Mexico, and Texas kids wore dusk masks and farmers watched their crops blow away. Years of drought and poor farming technique created these problems and the dust that blew in to homes. In 1933 Franklin D. Roosevelt after his election put in place reforms for economic recovery, job creation, and civic uplift to reverse the effects of the Dust Bowl and the Great Depression called the New Deal. The New Deal offered economic recovery through the Securities and Exchange Commission(SEC) and several other programs. These programs aided the bankrupt local and state governments and “injected a huge amount of federal spending to bolster aggregate incomes and demand”(Living New Deal) . This program helped refinance mortgages so people could stay in their homes. The SEC provided emergency relief to families to help support them when many Americans couldn't support themselves. The agricultural and industry prices where stabilized. The National Industrial Recovery Act (NRA) introduced codes for fair competition and guaranteed labor rights. On the other hand the Agricultural Adjustment Act (AAA) provided funding to farmers to supplement their crop production. President Roosevelt's New Deal created new jobs through the “ground work” (Kelber) created by the American Federation of Labor (AFL) .Through the instability...
tracking img