How Did The Great Depression Affect The Economy

It was the longest period of tragedy that ever hit the United States from 1929 to 1941. This led to a devastated US economy, thus termed as “.the most severe and long-standing recession in world history” (Segal, 2024). There are even those that died from hunger or couldn’t make ends meet from the inability to secure a job as “In some cities unemployment reaches 75 percent”( Winkler, 2009). 100 percent the Great Depression became the worst global economic downturn that would last years for Americans and has still reigned supreme as one of the greatest catastrophes of the economy in the twenties. The beginning of this tragedy began with the stock market crashing in August, 1929, signaling the start of the Great Depression, which is also known
President Roosevelt's new deal helped create an environment for individuals who may be suffering greatly due to this crisis and made sure to put certain measures in place. However, despite its best efforts to try and provide some sort of relief to people from their suffering during the depression and somewhat aid in recovering America from the depression that plagued our country, the only thing that really saved America and helped us overcome this economic tragedy, was its entrance into World War I. The United States decided to enter World War I after the attack on Pearl Harbor, and it had to be one of the smartest decisions to make. Without a war world, it may have been nearly impossible for America to recover from the Great Depression. The war allowed for the mobilization of the economy as many men and women joined the army to fight in the war and many more went to work in other defense related jobs. “The war brought full employment.” (Goodwin, 1992), giving millions of Americans a job which allowed for an increase in productivity resulting in real wages, wage increases, etc. Though, once again, the new deal also played a part in getting America back on its
There were many programs under the New Deal aimed at alleviating suffering among jobless persons, boosting the economy and controlling financial institutions. Some other important programs and policies that were included were the creation of the Works Progress Administration which provided jobs for millions of people who had no work, Civilian Conservation Corps which engaged young men in projects related to environmental conservation and Social Security Act that gave aid to older people and physically impaired ones. Moreover, it introduced the Glass-Steagall Act that separated commercial from investment banks and formed Federal Deposit Insurance Corporation with the aim of insuring deposits in banks in order to prevent rushing out of money by depositors. First off, the new deal first began around 1933, just after Roosevelt came into power. Before the first policy was signed, President Roosevelt “declared a four-day banking holiday that shut down the banking system, including the Federal Reserve”(federal, 2013), basically aiming to start over the banking system and to check it before reopening. The emergency banking act was signed soon