Great Depression & The New Deal
Causes & Effects of the Great Depression
Wall Street Crash was a "boom" that was in full force both in the U.S. & in the world economy in the late 1920's. On the stock exchange on Wall Street, stock prices had kept going up & up for 18 months from March 1928 to September 1929. Causes of the crash was uneven distribution of income, stock market speculation, excessive use of credit, overproduction of consumer goods, weak farm economy, government policies, & global economic problems. The social effects of the depression were felt by all classes. People searched for work while poverty & homelessness increased.
Hoover's first major decision concerning the international situation was one of the worst mistakes of his presidency. In 1930 the president signed a law of schedule of tariff rates that was the highest in history. In 1931 conditions became so bad both in Europe & the U.S. That the Dawes Plan for collecting war debts could no longer continue. Hoover was convinced that some government action was needed to pull the U.S. economy out of its doldrums. In 1932 millions of unemployed workers & impoverished farmers were in a state bordering on desperation. Also a thousand of employed WWI veterans marched to Washington D.C. To demand immediate payment of the bonuses promised them in later date of 19457. 1932 was the worst year because of the presidential election. Republicans denominated Hoover who warned that a democratic victory would result in worst economic problems.
Franklin D. Roosevelt's New Deal
Of a wealthy family in New York Franklin was the only child. As he grew older he looked up to his cousin Theodore & was planning to follow in footstep which he did as a New York State legislator & then as U.S. assistant of the navy. 1928 he was campaigning from a car to a wheelchair, Roosevelt was elected governor of New York. He provided a number of welfare & relief programs to help the people that was jobless. He did not have a thought out plan for ending the depression. After being sworn into the office he called Congress into a hundred-day-long special session. Congress was adjourned briefly after it's extraordinary legislative record in the first Hundred Days of the New Deal.
The Second New Deal
WPA was a large agencies of the First New Deal, it spent billions of dollars between 1935 & 1940 to provide people with jobs. The reform legislation of the Second New Deal reflected Roosevelt's that industrial workers & farmers needed to receive more government than members of business & also classes that have privileges. The Social Security was created to a federal insurance program based upon the automatic collection of taxes from employees & throughout people's working careers. In the Election of 1936 the economy was improved but still weak & unstable in 1936 when the Democrats nominated Roosevelt for a second term.