After nearly a decade of prosperity, the United States’ economy took a turn for the worst with both the stock market crash and bank failures through the 1930s, the US was the first major industrial nation to enter the Great Depression. Consumption and hours worked per week were both down during the Depression, which was a trend that persisted through the 1930s. There, were multiple factors, including Franklin D. Roosevelt’s New Deal that caused the United States to be the last of the major industrial nation to leave the Great Depression.
The National Industrial Recovery Act, which was passed in 1933, caused in imbalance economically for businesses. Passing the National Industrial Recovery Act, or the NIRA, the government programs such as the …show more content…
Starting agencies and programs that spent money to create jobs for citizens who were looking for work caused money to be spent without earning any of it back. The goal was to lower unemployment to an acceptable level, but there was very little to be done for inflation. Prices had still risen as a result of the National Recovery Administration, making it difficult for businesses to keep people under employment, subsequently making it difficult for people to find work without the help of the federal government. The citizens who worked under these programs needed to continue to working for them or would never be able to afford the goods that they needed. They could never reach economic independence from the government. Roosevelt’s New Deal was creating groups of Americans who would be dependent on the government. Government programs, such as the Civil Works Association, were designed to supply work to citizens. The government was spending taxpayer money by creating government jobs for unemployed citizens. After much government spending, the citizens working for the government made jobs weren’t getting any closer to economic independence and with growing complaints, President Roosevelt dissolved the Civil Works …show more content…
Because citizens weren’t receiving the income that they had grown accustomed to, prior to the Great Depression, they weren’t buying from companies that had raised prices due to the National Recovery Administration. Because these businesses weren’t making as much money and needed to lay off more workers, they’re was less money circulating. Also, with a nationwide distrust for the banks as well as the stock market, investment was at an all-time low. Without money being put into the banks, there was less money in the system to be spent. Private investment in the stock market was nearly nonexistent, making it difficult for businesses to revive their profits. Without money being circulating, the economy had no chance at ever reviving back to what was expected. Businesses that chose to opt out of joining the National Recovery Administration didn’t display the Blue Eagle symbol on their shop windows or products and were subsequently boycotted and lost
The National Industrial Recovery Act, which was passed in 1933, caused in imbalance economically for businesses. Passing the National Industrial Recovery Act, or the NIRA, the government programs such as the …show more content…
Starting agencies and programs that spent money to create jobs for citizens who were looking for work caused money to be spent without earning any of it back. The goal was to lower unemployment to an acceptable level, but there was very little to be done for inflation. Prices had still risen as a result of the National Recovery Administration, making it difficult for businesses to keep people under employment, subsequently making it difficult for people to find work without the help of the federal government. The citizens who worked under these programs needed to continue to working for them or would never be able to afford the goods that they needed. They could never reach economic independence from the government. Roosevelt’s New Deal was creating groups of Americans who would be dependent on the government. Government programs, such as the Civil Works Association, were designed to supply work to citizens. The government was spending taxpayer money by creating government jobs for unemployed citizens. After much government spending, the citizens working for the government made jobs weren’t getting any closer to economic independence and with growing complaints, President Roosevelt dissolved the Civil Works …show more content…
Because citizens weren’t receiving the income that they had grown accustomed to, prior to the Great Depression, they weren’t buying from companies that had raised prices due to the National Recovery Administration. Because these businesses weren’t making as much money and needed to lay off more workers, they’re was less money circulating. Also, with a nationwide distrust for the banks as well as the stock market, investment was at an all-time low. Without money being put into the banks, there was less money in the system to be spent. Private investment in the stock market was nearly nonexistent, making it difficult for businesses to revive their profits. Without money being circulating, the economy had no chance at ever reviving back to what was expected. Businesses that chose to opt out of joining the National Recovery Administration didn’t display the Blue Eagle symbol on their shop windows or products and were subsequently boycotted and lost