The Great Depression By Franklin D. Roosevelt Essay

1456 Words May 2nd, 2016 6 Pages
Great Depression was one of the most severe economic situation the world had ever seen. It all started during late 1929 and lasted till 1939. Although, the origin of depression was United States but with US Economy being highly correlated with global economy, the terrible effects were seen in the whole world with high unemployment, low production and deflation. Overall it was the most severe depression ever faced by western industrialized world. The Great Depression, a turning point in America 's history, led to a greater interaction between federal government and the America 's economy; this became very effective in creating more jobs, social security, and many more beneficial acts known as the New Deal which was created by Franklin D. Roosevelt.
In 1928, Herbert Hoover was elected into office as the president of the US and the citizens remained optimistic and confident in the American economy. They foresaw a national prosperity as Hoover declared that the nation was finally winning the battle against poverty than in any other time of history (Irwin 11).This fueled the optimism of the American citizens as the economy continued to prosper. One way to fight poverty was to invest in the stock market. Prior to 1929, the stock market had increasing prices and a bull market existed. Investing in the market was as a result of rising dividends, personal savings, banks loans, firms overproduction, non-regulated stock market and the consumption psychology. The crash was initiated as…

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