The Negative Effects Of The Great Depression

Throughout the era of the Great Depression came many positive effects as well as negative effects. The Great Depression was known for being one of the worse moments for our nation’s economy. The Depression occurred in the 1920s and it was very difficult to rebuild the economy. The “Great Depression” originates from the term economic depression. Economic Depression is defined as a period of drastic decline in the national economy, characterized by decreasing business activity, falling prices, and unemployment. The rising of the economic depression was blamed on president Herbert Hoover because of his “dolittle” approach. The approach was his way of waiting it out for things to get better. Hoover was also blamed because the state of the economy
The AAA paid farmers not to grow certain crops. The purpose was to reduce supply and thereby raise farm prices. Reducing crop surplus would raise the value of the crops that were still being produced. This agency promoted soil conservation. The act controlled the supply of seven “basic crops” which were corn, cotton, rice, peanuts, tobacco, milk, and wheat (1938). Another one of the New Deal programs was FDIC or the Federal Deposit Insurance Corporation. The FDIC insured savings accounts in banks approved by the government protected the money of depositors in insured banks (1933). The establishment of New Deal also came along with many supporters and critics as well. The critics claimed that FDR “was a president, not a king”, the deal was not doing enough, doing too much, and many critics often spoke out about the negative effects of this deal such as Charles Coughlin and Huey Long. But, even though there were critics, there was many supporters. The supporters believed that the New Deal was better than the “hands-off” approach and that it created many jobs, which stimulated the
She claimed that my Grandaddy was “a genuinely happy man because he was alive, he was happy to learn and grow as a nation from such a hard time for everyone”. Lastly, I asked her as a closing question, how would you summarize your Great Depression experiences?, and she responded with, “this is a lesson for everyone, I witnessed people jumping off of buildings because they had nothing, no food, no money, no home. It really makes you understand just how delicate the balance of our economy