Causes Of The Great Depression Dbq

1192 Words 5 Pages
The Great Depression, spanning from 1929-1939, was a period of great turmoil in the United States. A depression is a sustained, long term period in which the economy is failing. The Great Depression was caused by the collapse of the Stock Market and the failure of the Banks. The reason why the crash of the Stock Market was so impactful to our economy was because of the speculative nature of the Market. Many people bought stocks on margin, which meant that they only paid 10% for the stock while loaning the rest from the bank. This method of investing with the bank’s money became very popular and many people bought stocks on margin without debating the consequences. Finally, on Black Thursday, the stock market crashed, and many lost their life …show more content…
According to Document 1, the National Youth Administration allowed teenagers to obtain jobs to make money. Teenagers worked long hours, but were able to help support their families and provided enough money for them to stay in school. The National Youth Administration provided much needed relief to entire families as teenagers were able to find jobs to boost family incomes and to receive an education. Another example of the relief provided by the New Deal is found in Document 6, where evidence is given on how the Works Progress Administration provided well-balanced meals for schoolchildren throughout the country. Many children have to travel many miles in order to reach school, and for most of these children, the Works Progress Administration provides the only hot meal of the day. This program of the New Deal was able to provide a much needed nourishment for the children as well as jobs for women to prepare the food. Lastly, in Document 8, the elderly and people with disabilities were provided welfare under the name of Social Security. Before the New Deal, the elderly were stuck with no income and were unable to retire if they wanted to make a living for themselves. This new welfare program allowed for the elderly to retire, and make way for the young adults looking for a job. This was a big reason for the success of the New …show more content…
According to Document 2, the New Deal was a huge step towards both Socialism and Communism. The New Deal contained many programs which allowed the government to exert its control over corporations and is continually promoting labor troubles, highers wages, shorter hours, and less profit for business. If the government continues executing the New Deal, it will ultimately fail and would end in disaster for the entire country. Not only would the New Deal end in disaster, it also costed the U.S. government billions of dollars. As shown in Document 3, the government started with only 16.9 billion dollars in debt in 1929, but ended with 44 billion dollars in debt in 1941. In just 12 years, there was a 260% increase in the American debt, Even if the New Deal allowed the american citizens to climb out of the Depression, the government would still have to spend decades to try to climb out of its debt. The New Deal claimed that it would provide relief, reform. and recovery to all its citizens, but it blatantly excluded its benefits from minorities such as the African Americans. For example,The National Recovery Administration offered better jobs to the whites as well as gave the blacks separate and lower pay scales for blacks. This made it extremely hard for African Americans to recover from the Great

Related Documents