Solutions To The Great Depression

The Great Depression struck the United States in 1929, caused by overproduction and weak banks. Overproduction was caused by people manufacturing more than people could buy, this forced wages to drop, closed businesses and allowed debts to rise. Banks became weak because they gave loans to unsteady sources and gave loans to people who invested in the stock market, yet when the stock market crashed, the investors could not pay back their loan and took on debt. This forced banks to close and fire workers. Both of these issues, unemployment rates raised to an unheard level. For example, according to the u-s-history.com, in 1929 1.5 million people were unemployed. Yet, four years later, in 1933 12 million people were unemployed. Also, since the
These businesses couldn’t grow because there no was investor or bank to get money from. To fix these issues Franklin D. Roosevelt came in and created the New Deal, which consisted of helping the jobless and the economy. The New Deal was good because it gave jobs to the jobless, recovered the damages caused by the Great Depression and prevented another economical disaster. The New Deal created to solutions to many of the problems that were created by the Great Depression. For Example, reviving the banks, helping the unemployment problem, preventing another Great Depression and rebuilding the economy. The New Deal created the Emergency Banking Relief Act, that forced all banks to close for four days and only the banks that were stable to hold money could reopen. This allowed for people to trust their banks, and permitted more people to put their money in banks. Also, for more of a flow of money, stabilizing the economy. The New Deal created many programs to revive the unemployed from unemployment. It did this by creating the CCC, FERA and the WPA, these were all programs that offered jobs and improved public areas. According to the textbook, the CCC, the Civilian Conservation