Franklin D. Roosevelt: The Root Cause Of The Great Depression

Improved Essays
On the infamous Black Tuesday in 1929, the United States was plunged into a depression that only seemed to worsen as the years drew on. The prosperous and riveting years before were forgotten as the country struggled in economic disparity. The country faced high unemployment rates, devaluation of the dollar, and bank failures along with a general sense of hopelessness. As Franklin Delano Roosevelt entered the presidential office, he promised the people relief from the Great Depression, recovery from the major economic collapse, and reform to avoid similar situations in years to come. All of this was encompassed under his New Deal programs. In his first hundred days in office, FDR enacted dozens of bills and programs in hopes of lifting the people of the United States out of the Depression. However, these efforts proved futile, as the economic standing of the United States did not improve. Higher taxes, lack of wage increases, and lack of industrial production caused by the programs of Franklin Roosevelt’s New Deal helped plunge the United States into a deeper economic recession. President Roosevelt believed that some of the root causes of the Great Depression was the excessive competition; competing businesses lowered prices of their products which …show more content…
The period immediately following the repealing of the NIRA was filled with corruption; antitrust enforcement had become very lenient and businesses had become accustomed to price fixing. In one case, the Interior Department had reported that steel corporations had set the price for steel at fifty percent higher than that of other countries (Cole 785). Although while it was in practice, the National Industrial Recovery Act seemed to be benefitting the country, after it was ruled unconstitutional, corruption became rampant in the United

Related Documents

  • Improved Essays

    The Great Depression was a time of sadness. Many people lost their jobs, and lost all of the money that they had in the bank. They were bankrupt. 25 percent of the people in America were unemployed. This had skyrocketed from 3 percent.…

    • 781 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Starting in late 1929, the cruelest and longest depression of the 20th century arose. Caused by the collision of the stock market. This was what is now known as the Great Depression. During this time, the economy was severely poor in the United States and also all around the world. During this time of profound crisis, two different presidents got the opportunity to serve the country, President Franklin D. Roosevelt and President Herbert Hoover.…

    • 816 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    The Great Depression was a dreary time in American History and took a toll on much of the nation in a negative way. Black Thursday was the beginning of the depression, and it was on this day that “investors were made nervous by the rising interest rates, and suddenly sold their shares. This jolted investor confidence, and caused…

    • 1060 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    Franklin Delano Roosevelt stepped in as leader during a dark time in American history. Although some of his policies were unsuccessful, many of them helped pull America out of the Great Depression. There were a multitude of causes for the Depression, it was a culmination of many smaller problems resulting in one very big problem. There were also many reason as to why it lasted so long and was so cruel. FDR’s policies and programs were somewhat controversial and debated by many, but most of them proved to be successful.…

    • 1120 Words
    • 5 Pages
    Great Essays
  • Superior Essays

    New Deal Dbq Analysis

    • 1239 Words
    • 5 Pages

    During the late 1920s to the late 1930s, the United States was impacted by the Great Depression, in which the US economy reduced the amount of job opportunities and increased the amount of poverty in the nation. The Great Depression was an economic depression that affected the US economy severely during the 1930s. The Stock Market Crash of 1929, Overproduction in farms and factories, Conflicts with the international economy and the Inequality of income in the US were all key parts that caused the Great Depression. The Depression took place at the end of Herbert Hoover’s presidency and carried into Franklin D. Roosevelt’s presidency. FDR stepped into office with several problems that affected everyone in the nation.…

    • 1239 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    The era of the roaring 1920s could not stay spontaneous forever as the economy of the United States collapsed in 1929, sending the nation into the Great Depression. The Great Depression left millions of Americans unemployed, homeless or living in poverty, unable to support their families, and the permanent feeling of hopelessness. The 31st President of the United States, President Herbert Hoover failed to help the United States out of the Great Depression. However, his successor, Franklin D. Roosevelt, was determined to end the Great Depression with his policies called the New Deal. Franklin D. Roosevelt’s administration was effective with relief and recovery, ineffective regarding the power of the federal government, and was able to change…

    • 1111 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    The Great Depression was a dark time for America that had disastrous economic, political and social effects. The collapse of the financial market led to the continual downwards spiral of the Depression. American banks gave out loans to those investing in the stocks using speculation, with many hoping to sell their shares for more than they purchased it for, paying off the bank and making a profit. Prices however began to fall quickly as investors tried to sell their stocks, unable to sell with the increasing numbers of shares. Companies were not selling as many goods, company profits fell and people became less willing to buy.…

    • 975 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Franklin D. Roosevelt introduced the New Deal in response to the beginning of the Great Depression, the Great Depression started on October 29, 1929. The Stock Market crashed and millions of Americans lost their jobs and had to live on the streets desperately searching for jobs with little hope of being accepted into a new job. Nearly 15 million Americans were unemployed and almost half of the country’s banks have failed. Franklin D. Roosevelt helped ease the matter of the Great Depression in the 1930’s by his administration passing legislation that aimed to stabilize industrial and agricultural production. It helped create jobs and stimulate recovery of the nation so the people would not have to live in poverty.…

    • 1142 Words
    • 5 Pages
    Improved Essays
  • Superior Essays

    In the words of President Calvin Coolidge, “The country can regard the present with satisfaction and anticipate the future with optimism,” (Doc B). Despite being President of the country, Coolidge was incredibly mistaken. Coolidge had no clue as to how far down their economy would plummet from 1929 to 1939. Coolidge had no clue that there would be thousands of homeless families and failing businesses in America’s not-so-distant future. Even John T. Raskob could not see this happening as he wrote in Everybody Ought to be Rich, “...anyone not only can be rich, but ought to be rich” (Doc C).…

    • 1825 Words
    • 8 Pages
    Superior Essays
  • Improved Essays

    These plans and reforms were a contagion that caused citizens to be joyful about one thing, but complain about another. FDR expound a more combative series of plans and reforms that helped stabilize the economy and create jobs for the people. Despite all of this, the depression consistently dragged on and eventually the reforms caused workers to go on strike for their rights. Even though the New Deal did help the economy and lives of millions, the beginning of World War II ultimately extinguished the depression because of serious industry growth. Some programs that Roosevelt created are still intact today (History.com Staff “New Deal”).…

    • 1119 Words
    • 5 Pages
    Improved Essays
  • Superior Essays

    Hoover DBQ

    • 1291 Words
    • 6 Pages

    When the Great Depression hit America in 1929, the nation sprawled into a time of immense poverty and destitution. President Hoover failed to respond effectively to the economic troubles relying on his philosophies of rugged individualism and the business cycle. While Hoover failed to take action, the nation continued its downward spiral into hardship. In 1932 Hoover lost to Franklin D. Roosevelt, who immediately took action towards the nation’s struggles. The people’s confidence in the government increased with the jobs that were created and Roosevelt’s actions, but the confidence also allowed the government to expand its power.…

    • 1291 Words
    • 6 Pages
    Superior Essays
  • Improved Essays

    During the 20th century (1929), the United States was hit with a huge Stock Market crash and this basically started events that would drag the US into a large depression. President Herbert Hoover was the unlucky president to have been in power when the crash took launch . Hoover believed the cause of this depression was international, and he solely believed that restoring the gold standard would drag the US out of depression by restoring international trade. He initiated many domestic works programs aimed at creating new jobs, but it seemed to have had no effect as the unemployment rate continued to rise more and more. During the election of 1932, the Democrats chose Franklin D. Roosevelt as their candidate for president against Hoover.…

    • 1775 Words
    • 8 Pages
    Improved Essays
  • Improved Essays

    Franklin D Roosevelt Dbq

    • 635 Words
    • 3 Pages

    Franklin D. Roosevelt is considered one of America’s greatest presidents along with George Washington and Abraham Lincoln. He was America’s president from 1932-1945 where he died in office and is the only president to have had more than 2 terms as president. He was known for his recovery of America’s economy during the Great Depression by giving jobs and reducing government spending and aiding America through World War 2 with strategic plans. In 1932, the American population was not happy with President Hoover’s effect on the economy, so they chose Democrat Franklin D. Roosevelt as their new president.…

    • 635 Words
    • 3 Pages
    Improved Essays
  • Superior Essays

    The Great Depression, starting in 1929 on Black Tuesday, was the crash of the United States economy. During that time, 25% of Americans were unemployed, and millions lost their savings due to bank failure, leaving them poor and frustrated with the government. Causes of the Great Depression include the overproduction of crops and the deduction of consumer spending. After WWI, the demand for crops dropped 40%, lowering the prices of food, and forcing farmers to produce more to meet their budget. They tore up roots that had been holding the land in place to make room for crops, and combined with a drought and high winds, started the Dust Bowl.…

    • 1026 Words
    • 5 Pages
    Superior Essays
  • Great Essays

    He promised to balance the federal budget, which Herbert Hoover had been unable to do. When FDR came into office, the national deficit was nearly $3,000,000,000 and America was struggling. (ushistory.org).The Great Depression began on October 29, 1929, a day known forever after as “Black Tuesday,” The Great Depression lasted from 1929 to the early 1940s, and “was the deepest and longest-lasting economic downturn in the history of the Western industrialized world.” (history.com).The depression was caused by an over-extended stock market and a drought that struck and crippled the South. The economy was inflated as money was worth virtually nothing and Roosevelt started with bringing together the work force.…

    • 1344 Words
    • 6 Pages
    Great Essays