The Causes Of The Great Depression

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The Great Depression began on October 29, 1929 when the the stock market crashed and lasted until the late 1930s. During the depression, Banks failed, businesses went bankrupt, and workers lost their jobs. The first cause of the Great Depression was farming crisis. During War War I, the American farmer overproduced crops to dded the soldiers in Europe and many farmer took out loan to expand their land and buy farming equipments. After the war, the demand for crop drop almost 40 percent, which caused the crop price to drop. Farmers could make enough money to support their families and pay their debt, so they were forced to leave their land and go elsewhere to find work. The banks could not get their money back and the flow of consumer demand …show more content…
Hoover was elected president in 1928. He supported rugged individualism, which meant that the government should not interfere with business and people’s economic life. Individuals should be responsible for their own success and failure. Hoover also advocated for voluntary cooperation. Furthermore, Hoover also believed that the economy has a natural cycle and it would eventually become better without much government interference. Roosevelt run for president against Hoover in 1932 and won the election in a landslide. In contrast to Hoover, Roosevelt believed in direct federal relief and the “try anything” approach, which meant that the federal government should do everything it can to improve the economy. The New Deal was FDR’s plan to end the Great Depression. It included three R’s --- reform, relief, and recovery. The New Deal was a success because it provided relief to minorities, reform the country’s economy, and restored the people’s confidence in the …show more content…
The new deal was a failure because it cause the national debt to increase dramatically every year. Document 3 showed that the expenditures increased from 3.125 billion dollars in 1929, before the Great Depression, to 9.589 billions in 1940, at the end of the Great Depression. The total government debt also increased from 16.9 billion in 1929 to 43.0 billion in 1940. Thi proved the New Deal was a failure because although the government spent enormous amount of money on the New Deal programs to provide jobs and direct relieves to the people and The Great Depression did not end until U.S. entered the World War II in 1941. The high unemployment rate was another reason why the New Deal was a failure. Even though New Deal program such as the CCC and the WPA created a lot of jobs for the unemployed workers, the employment rate did not return to the “normal” value, which was about 5 percent. According to Document 5, the unemployment rate even increased from 9.1 percent in 1937 to 12.5 percent in 1938. This showed that the programs were not effective in helping the unemployment workers to find jobs. Majority of them were still homeless and had no income to support their families, which meant that the Great Depression did not end. In addition, the New Deal was a failure because it did not provide relief to the black Americans. According to Document 7, the National Recovery

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