The Great Depression & The New Deal
Causes & Effects Of The Depression 1929-1939
The stock market crashed in October of 1929. Panic didn't start until a later day in October. The stock market crash wasn't the only cause of The Great Depression. There was excessive us of credit and uneven distribution of income. Because of the crash, banks closed, 13 million people became unemployed, and 10 million savings accounts were wiped out.
Wall Street's consequences were even in Europe. Hoover tried to come up with the Hawley-Smoot Tarriff but only deepened the depression. Eventually the president felt the government needed to get involved. He started by trying to give the farmers assistance. Farmers started getting together to stop banks from foreclosing and evicting them from their property.
Franklin D Roosevelt's New Deal
Now there is a new president named Franklin D. Roosevelt who is apart of a wealthy family. He wanted to follow in the footsteps of his cousin Theodore Roosevelt. Roosevelt didn't have a plan to end the depression but he had hope. He wanted to restore the banks' confidence so he ordered the banks to close on the bank holiday. Other programs included WPA, AAA, CCC, and NRA.
The Second New Deal
Roosevelt's first two years were focused on recovery. So in the summer of 1935 the 2nd new deal was launched. President Roosevelt thought the industrial workers and farmers needed more assistance than the rest of everybody else.