How Did The New Deal Strengthen Or Weaken The Usa Capitalism

Roosevelt's New Deal One of Roosevelt' s new deal was the Great Depression. The Great Depression was severe economic depressionin the 1930's. Most countries started in 1929 and lasted until the 1930's. It was the longest and deepest depression in the 20th century. In the 21st century the Great Depression was used as an example of how far the economy can decline. The depression originated in the United States,after the fall in stock prices which began September 4,1929. Then it became worldwide news with the stock market crash on October 29,1929 (known as Black Tuesday). The Great Depression had effects in countries that included the rich and the poor. Personal income, taxes, profits and prices dropped while international trade plunged by more than 50%. Unemployment in the United States rose to 25% and some countries rose as high as 33%. Cities around the world were hit hard especially the one depending on heavy industry. Construction was halted in many countries. Farming communities and rural areas suffered as crop prices fell by approximately 60%. Some areas were dependent on primary sector industries such as mining and logging suffered the most. Some economics started to recover by the mid-1930's. By late 1930 a steady decline in the worlds economy had set in and which did not reach bottom until 1933. …show more content…
These are various heterodox theories that downplay or reject the explanationsof the Keynesians and the Monetarists. The consensus among demand driven theories that is a large scale of loss of confidence that led to a sudden reduction in consumption and investment spending. Then panic and deflation set in. People believed that they could avoid further losses by keeping clear of the markets. Holding money became profitable as prices dropped lower and a given amount of money bought eeven more