The New Deal

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Poor management of America's resources is one of the main reasons we went in to a depression. The economy of the United States kept expanding and when the expansion peaked, supply passed demand. What goes up must come down and it, the economy, came down hard.

Nothing at this time was government regulated so businesses kept getting bigger and increasing their output which eventually lead to a surplus of goods on the market once it crashed. These surpluses lead to depressions, but in this case it was the longest depression ever in the United States.

The huge surplus led into one thing after another. Prices began to fall and employees started losing their jobs. With people losing their jobs, they had no money to spend on anything so the inventories where not being used up. This made the depression last for over 10 years.

The New Deal brought about a few new agencies and acts to help regulate the economy so this didn't happen again. The Securities Exchange Commission set up rules and regulation for the stock market because at this time it was a free market and the government was not involved. NIRA was also started and this act set minimum wage rates and developed rules for companies and banks.

In the end, World War II got us out of the Great Depression not the New Deal by providing new jobs to make things for the war and using up inventories. It also provided jobs for the employed; they enlisted in the Army. The New Deal only did two things: it helped people through the depression and got Franklin D. Roosevelt into office.





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