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The Great Depression was a severe economic and social crisis in the US and the world economy after the stock market crash in 1929. President Roosevelt’s New Deal policies helped the country recover, but the economy did not fully recover until World War II. The causes of the Great Depression are still debated by historians and economists.
The Great Depression is a common term for the social and economic situation in the United States (USA) after a dramatic financial disaster in 1929. Prompted by a variety of factors, the recovery from the Depression lasted nearly a decade in the United States, and had devastating to the world economy. The President of the United States, Franklin Delano Roosevelt, is widely credited with pursuing policies that allowed both the economy and the country to recover by the end of the 1930s.
What caused the Great Depression is a matter of considerable debate between historians and economists. Due to the failure of the markets and the convergence of several unfavorable economic factors, the US stock market collapsed dramatically in late October 1929 and continued to plunge until 1932. According to financial experts, the market has not recovered to pre -depression until the mid-1950s.
While the Wall Street Crash did not cause the Great Depression, the enormity of the event highlighted the grave threat to the American economic system. Furthermore, the massive costs of the recently ended World War I left the global economy unable to respond quickly to the crisis. Unemployment soared as surviving stock businesses were forced to shrink or close altogether. Unlimited numbers of individuals lost their invested life savings and jobs, forcing many families from a comfortable existence into poverty in a matter of months, weeks, or even days.
Despite his initial popularity, US President Herbert Hoover was accused of failing to prevent or prepare for the Great Depression, leading to the election of Franklin Roosevelt in 1932. Although some historians point out that Hoover could not have prevented the disaster, the Roosevelt’s election is seen by many as a turning point in the depression. Roosevelt responded quickly with new policies intended to boost employment and save the economy. These policies quickly gained popularity, becoming known as the New Deal.
The New Deal included temporary relief programs for the unemployed and focused on rewriting federal law to improve the way banks and corporations were run. One major program was the Works Progress Administration (WPA), which created millions of government jobs dedicated to public projects such as road and bridge construction. The WPA has also created thousands of jobs for artists through government programs geared towards supporting the arts, such as the Federal Theater Project. The New Deal also very favorably repealed Prohibition, the constitutional amendment banning alcohol in the United States.
Although the economy did not begin its full recovery until World War II created the need for vast wartime industries, the election of President Roosevelt and his tremendous response to the crisis are often attributed to the changing mood of the country and to the restoration of hope for millions of unemployed and suddenly destitute citizens. Some have compared US President Barack Obama’s 2008 election to Roosevelt’s, citing that both had an unprecedented message of change during a time of severe economic downturn. While most economists believe that the 2008 recession will not create a crisis as severe as the Great Depression, President Obama’s government’s ability to reverse the declining economic trend will no doubt constantly have to contend with President Obama’s inspirational and historic work. Roosevelt.
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