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The Great Depression And The New Deal

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The Great depression and the New Deal

The Great Depression began in October 1929, when the stock market in the United States dropped rapidly. Thousands of investors lost lots of money and many were wiped out, lost everything. The crash led us into the Great Depression. The ensuing period ranked as the longest and worst period of high unemployment and low business activity in modern times. Banks, stores, and factories were closed and left millions of Americans jobless and homeless. Many people came to depend on the government or charity to provide them with food.

The Depression became a worldwide business slump of the 1930’s that affected almost all nations. It led to a sharp decrease in world trade as each country tried to protect their own industries and products by raising tariffs on imported goods. Some nations changed their leader and their type of government. In Germany, poor economic conditions led to the rise to power of Adolf Hitler. The Japanese invaded China, developing industries and mines in Manchuria. Japan claimed this economic growth would relieve the depression. This militarism of the Germans and Japanese eventually led to World War II.

In the United States, President Herbert Hoover held office when the Great Depression began. The economy continued to slump almost every month. Franklin D. Roosevelt was elected President in 1932. Roosevelt’s new deal reforms gave the government more power and helped ease the depression. The Great Depression ended as nations increased their production of war materials at the start of World War II. This increased production made more jobs and put a bunch of money back into circulation.




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