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Depression And New Deal

Submitted by aznmiy on April 20, 2008

Category: American History
Words: 1199 | Pages: 5
Views: 47
Popularity Rank: 95,203
Average Member Grade: N/A (Add a Comment / Grade this Paper)

Great Depression and New Deal
The Great Depression first started as early as 1928, but did not affect the United States until 1929. The Great Stock Market crash started the event of the Depression here in America, but was not the main cause to why it happened. During the early stages of the depression, President Hoover failed to help the economy and continued with his belief system of giving people the least help they needed, so they can earn themselves a rightful spot with pride, not with government’s help. The Great Depression was a very intense experience for us, even until today, the results still affects us.
During the 20s, the economy of the US was rising at such a steady pace, that many were able to gain from the era known as the Booming Twenties. One major industry that brought many Americans to have a pleasant comfortable life was in playing the stock market. 9 million Americans invested in the market, which made quick profits, but with money borrowed. Stock buyers were naïve and believed the bull marketing will still continue to increase, but Federal Reserve warns the people of an economic distress will occur soon. Of course, no one listens as they continue to swim in their money. On October 24, 1929, shareholders panicked as they rushed to sell their stocks and led to the downfall of the stocks.
Although the stock market crash did mark the Depression Era, it was not the main cause, but rather it was more of a social problem that caused this disaster. The misdistribution of wealth between the rich and the poor was too large, with no middle class, or working class, to balance the too sides. As the poor became poorer, they could no longer afford luxury items, and the rich no longer needed so many cheap items. So overproduction was a great impact on the production industry, as well as on agriculture, where the decline of farm prices was great, and since the industrial revolution and World War 1, had not been benefited....

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