The Great Depression and New Deal

KazKaz presentation

Stock crisis in New York

The great depression was the worst economic depression in 20th century. The Dow Jones fell 89 percent. And many people rushed for selling their stocks. Moreover many people suffered from the high unemployment that was 25 percent at worst.

Excess supply

Unsustainable economy that kept high standard of manufacture after few years of the recovery in the European countries.

Mistake in government policies

Required unsustainable labor control for the companies, and raise the trade taxes that exacerbated most of the buisiness.

Franklin.D.Roosevelt

The economy was obvious that it was not sustainable. Therefore this man, Franklin Roosevelt attempted to change the way of the government with New Deal. In particular, he started to step in companies and markets more and adjusted the economy by themselves. However, the war began before those policies are affected obviously.

New Deal

First the federal government tried to lower the unemployment by giving jobs to those who lost their jobs, for example making the dam in Tennessee Valley. And next, he instituted the act that government can limit the industry produced by companies, so that they cannot produce too much products to sell. These programs were implemented very quickly in first 100 days after Roosevelt took office in 1933. However, there are some arguments that suspect the effect of the New Deal. After the New Deal started, the GNP and the rate of unemployment seemed improving, but before the effect got obviously visible, the World War II began. As the war began, war industries became big rapidly, and the business recovered very soon and the great depression in the U.S. was over.