Great Depression Effect

Improved Essays
The Great Depression left many people without economic labor. It had occurred when the stock market had crashed which left investors and employees in panic mode. The overall causes of this downturn was because of overproduction, uneven distribution of income, consumer debt, and stock market frenzy. Franklin Roosevelt was president at the time of the depression. He had circled many ideas including his impactful New Deal. When the stock market had crashed and Roosevelt became president he had promised to experiment with new government programs for economic and social reforms. During this time period, Herbert Hoover believed in “rugged individualism.” This phrase meant that everyone could accomplish through themselves; without the help from …show more content…
It wanted to protect manufacturers from foreign competition but instead it harmed American sales abroad. At this time people could not find ways to pay their mortgage or pay their rent for their houses. This created people to build shacks in shantytowns, which they were called “Hooverville.” It was named after president Hoover because people blamed him for all their financial problems. Due to the Dust Bowl many farmers left their fields uncultivated. It started when a terrible drought occurred in the Great Plains. It caused people to lose their farms or move to find a better life elsewhere. Many people who moved were from Oklahoma, and they were known as “Oakies.” Severe dust storms were constantly appearing destructing many crops and prevented crops to be grown. Because of the Dust Bowl crop prices were lowered so people could buy, but it still was not enough to cover all of the failure of growing crops. To recover from the harsh weather and destruction Hoover increased public works. Hoover asked governors and mayors to increase public works spending. Although he refused to increase government spending because he feared that deficit spending would detain an economic recovery. Hoover had successfully built and constructed the Boulder Dam which is now called Hoover Dam. It provides electricity, flood control, and water for 7 western states. Farmers often destroyed their crops …show more content…
It set up pensions for retirees and it gave money to states to aid dependent children, and it established unemployment insurance through payroll, and deduction. Also human rehabilitation established the principle that government has responsibility for the health, welfare, and security. It also protected and educated citizens of the country. It supported housing, social security, and public health. It helped people resettle with their farms and planting crops. After the new deal, politics were getting better. The executive branch got a long stronger with power. The Great Depression and Roosevelt’s New Deal impacted many people over the years it happened. It left people with nothing. They had lost everything due to the stock market crash. Roosevelt was the one that had ideas to rebuild and prevent the same thing to happen again. He came up with his new deal which before becoming president he had promised to make the economy

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