The New Deal: How did the New Deal affect the workers that were impacted by the Great Depression?
The Great Depression was one of the lowest time periods in American history. Contrary to popular belief, it was a chain of unfortunate events, not solely the stock market crash, that led to great depression. Between the years of 1929-1939, the Unites States faced a devastating economic downturn never seen before. The stock market crash of 1929, which sent Wall Street into a frenzy and decimated millions of investors, marked the onset of the Great Depression. The economy first entered an ordinary recession because consumer spending decreased and production was slowed due to the limited amount of goods being sold. Simultaneously, bank failures were occurring across the nation-over 9,000 in total.[1] A decrease in customer spending led to some unemployment and wage reductions. People who could not afford certain products began purchasing them on credit. Bank deposits were uninsured, so when the banks failed people lost their savings and had no way of getting it back. The people who had bought goods on credit were now unable to keep up with their installment plans, and victims who were worse off had their homes repossessed. The extreme loss of income added to the decline of goods being bought, which eventually led to the immense reduction in the workforce. At one point, 25% of all workers, 13-15 million people nationwide, were unemployed.[2] The agricultural sector suffered because farmers were producing more than they could sell, and as food process fell, farmers received lower profits. The international sector and US foreign trade suffered because foreign exports exceeded imports. The US would accept loans, instead of direct payment, for goods purchased from the United States by outside countries. Many lost their jobs, houses, and starved. Soup kitchens, bread lines, and a rising number of homeless people became commonplace in American cities. The US economy had been going downhill and now had hit its lowest point. It was time for President Franklin D. Roosevelt to step in and take action to address the country's economy, by way of the New Deal. The New Deal affected the workers positively by increasing employment and improving conditions.
1929: The stock market crashes on October 29 and causes a national panic; start of Great Depression
1930-1935: The Dust Bowl occurs
1932: President Roosevelt is elected on his campaign focused on the New Deal
1933: Over 10,000 banks close. The Federal Deposit Insurance Corporation and Civil Works Administration are formed
1935: Social Security Act is formed
1940-1941: Roosevelt is elected to a third term in 1940. Increased industry from WW11 pulls America out of depression.[3]
[1] City-data forum, "What events led to the Great Depression?" February 10, 2010. http://www.city-data.com/forum/politics-other-controversies/892699-what-events-led-great-depression.html
[2] History, "The Great Depression" Accessed November 5, 2013. http://www.history.com/topics/great-depression
[3]Archives, "Great Depression Newspapers" Accessed November 5, 2013. http://www.archives.com/genealogy/newspaper-genealogy-great-depression.html
1929: The stock market crashes on October 29 and causes a national panic; start of Great Depression
1930-1935: The Dust Bowl occurs
1932: President Roosevelt is elected on his campaign focused on the New Deal
1933: Over 10,000 banks close. The Federal Deposit Insurance Corporation and Civil Works Administration are formed
1935: Social Security Act is formed
1940-1941: Roosevelt is elected to a third term in 1940. Increased industry from WW11 pulls America out of depression.[3]
[1] City-data forum, "What events led to the Great Depression?" February 10, 2010. http://www.city-data.com/forum/politics-other-controversies/892699-what-events-led-great-depression.html
[2] History, "The Great Depression" Accessed November 5, 2013. http://www.history.com/topics/great-depression
[3]Archives, "Great Depression Newspapers" Accessed November 5, 2013. http://www.archives.com/genealogy/newspaper-genealogy-great-depression.html