How Did The New Deal Respond To The Great Depression

The 1920’s were in full roar in 1929, and the majority people were expecting it to last a long time. However, there were many underlying issues in the economy. Basic industry was falling apart due to a serious supply and demand problems. Surplus was abundant, but most people couldn’t buy them. A lot of people didn’t have very much money and often used credit to buy things, especially stocks to increase their money quickly. Because of this, they had incredible amounts of debt. Quite a few relied on stocks to earn their money back to pay their debt from credit. In October of 1929, the stock market plummeted marking the beginning of the Great Depression. People lost their entire life savings in a matter of hours. The worst day of the crash, “Black Tuesday” was October 24, 1929.
Companies were losing money, so they laid off employees. All of this cumulated into the biggest economic depression in the history of the world. In 1932, President Franklin Delano Roosevelt (FDR) was elected. He wasted no time in trying to help. He created the First New Deal in 1933. He ended it in 1935, only to replace it with the Second New Deal at the same time which would last until 1937. Both New Deals focused on Relief for those that need it, Recovery from the Depression, and Reform to prevent anything like the Depression from ever happening again. The New Deal accomplished what it set out to do because it provided relief in the form of employment, recovery through the Agricultural Adjustment Administration (AAA), National Industrial Recovery Act (NRA), and new corporations, and reform by way of the Federal Deposit Insurance Corps (FDIC) and the banking