There were many causes that let into the Great Depression.
Some of the most major causes came from the departments of agriculture and major corporations. Agriculture had been depressed before the 1920s and they had not recovered before the start of the Great Depression. Also the corporate profits were high, however the workers wages were low. This caused overproduction of crops in the states as well as lack of cash, bad banking, tariffs and trade policies, and government monetary policies. By 1929 housing, automobile textile, tire and other industries were overextended meaning there was an over abundance of each of these items in there production. This was also topped with the stock market crash in October of 1929, which led the United States into the Great Depression.
Production was then cut in half, food prices decreased, many banks were closed, and unemployment rate rose. Most Americans were affected greatly by this event. Many people lost their job, homes, and money. Jobs were lost due to the increasing unemployment rate. This affected most families, some harder than others. Money became scarce and many banks closed, causing people to lose their money that was once in the bank. People also lost their homes because they couldn’t afford to pay for it.
Hoovervilles were created, this is where people made houses out of whatever they could find like cardboard, sheets, and any time of metal like tin they could find. These places had terrible living conditions, but it was the best some people could do at times. Farms also suffered from the Depression. Many farms were foreclosed, became very poor, or were repossessed to others. This was bad for food and crop production, and affected the whole US negatively. In 1932 there was an election for the president. The republicans renominated past president Hoover.
The democrats however chose Franklin D. Roosevelt. Roosevelt proposed an idea called the new deal. While he was running for president he promised basically the opposite of what Hoover had done, saying he would help the people at the bottom of the economic pyramid. He was also not Hoover so many people voted for him to be elected. In the hard time of the depression the people looked for someone who would help them get out of the low economy.
One way FDR planned to combat the depression was with what he called the New Deal. The New Deal was made up of three major recovery plans. The plans were industrial recovery through business and government help, agriculture recovery through crop reduction, and emergency relief whether it be locally, state or government level.
The first hundred days were when many legislations were passed to help the goals of the New Deal. One of the early relief programs was called the Civilian Conservation Corps which employed younger citizens into government projects. This helped half a million men in the US. Another relief program was the Federal Emergency Relief Act. This act gave 500 million dollars for state and local relief agencies.
The second major agency that was created was the Agricultural Adjustment Administration. This administration was in charge of the program that created a tax to give to the producers of major farm products. The Public Works Administration was in charge of the National Industrial Recovery Act that gave 3.3 billion dollars for public works programs. The last major organization was the National Recovery Administration.
The group made draft codes that made “fair competition”, by setting production limits to avoid overextending in factories. It also made set wages and working conditions, helping the workers have a better working environment. Later on in the New Deal a Social Security Act was enacted in 1935. This act helped greatly in the social-welfare programs for many years to come. Overall the New Deal was greatly successful due to all the legislations that were passed.
These legislations helped America in a time of suffering, known as the Great Depression. Without the help of Franklin D Roosevelt the New deal would have never came to be. Even though the New Deal did not get the US out of the Depression it provided short term relief to many and temporary jobs.
Some might say just because the New Deal didn’t get the US out of the depression and that it was only temporary, the New Deal was a failure, however at the time it felt like a success to the people who received the relief, and it helped with the hopes of the US. Without the new found hope the US would not have been able to push through the years of the Great Depression.