What Was The Main Cause Of The Great Depression

The Great Depression was a worldwide economic downturn that began in 1929 and lasted up until about 1939. It was a period of unprecedented decline in economic activity. After the stock market crash and the collapse of American banks, strict trading and banking regulations were put in place because of some economic challenges, such as poverty. Although, there were a few significant figures, like Huey Long, Francis Townsend, and Charles Coughlan whose ideas helped influence the decisions made by FDR during that period. His decisions, particularly ones of the New Deal, aimed at provision of relief as well as employment opportunities, which helped to initiate economic recovery.
Unemployment heightened as factories closed due to overproduction, causing people to lose their source of income, and the government provided no unemployment insurance. Not to mention people lost their savings due to numerous banks closing. Therefore, this caused great poverty. Endless number of American people were homeless, didn’t have jobs, were hungry, and had inadequate housing. Many individuals believed it was wrong for the government to allow Americans to suffer in poverty
when in reality food, clothing, and shelter existed. Some important individuals such as, Huey Long believed this and had ideas to help with this economic crisis, poverty.
Huey Long blamed the economic collapse on the substantial income imbalance in the country. He wanted to help by improving education, medical care, and public services. Specifically, Long advocated for a free higher education, pensions for the elderly, veteran benefits, health care, and a yearly stipend for all families earning less than the national average income. He proposed the “Share the Wealth” program for redistribution of wealth. It would provide a decent standard living to all Americans by spreading the nation's wealth. For instance, having a minimum annual income of $5,000 for every American family which would be paid for by taxing the wealthy. This program was intended to end poverty since people would have at least some source of income.
Francis Townsend was another significant figure of the time.
He had a proposal for a state-funded pension which was eventually called the Townsend plan. It promised to end the Great Depression by opening up jobs for younger workers, while forcing seniors to spend more money in the consumer economy. His idea was to end economic crisis through consumer spending by a way of ending poverty among the elderly. It would have awarded $200 monthly to individuals over sixty years old who were no longer employed. Roosevelt eventually adapted his ideas of the Townsend Plan into what is now called the Social Security program, which has more restricted benefits. Although, his plan had a great deal of effect on Roosevelt's ideas, other individuals influenced FDR and this period of time not by any specific ideas, but simply
opinions.
Charles Coughlin was one of America’s most influential opinion makers through radio. He believed Roosevelt could pull the United States out of the Depression and, at the same time protect the country. When FDR realized how many people listen to Coughlin on the radio, he began using his influence to help garner public support for the New Deal. As he did, Coughlin used his radio program to support the New Deal and to strike those that opposed it. However, after repeatedly trying to get the President to notice him, and failing, he began to change his ways. When he realized he was not going to be part of FDR’s presidency, Coughlin then used the radio to attack both FDR and the New Deal.
Roosevelt took office during a horrible and debilitating economic depression, however, his creation of the New Deal helped with America's recovery. The purpose of it was to create programs and organizations that offered relief to the nation after the Great Depression. For instance, the Works Progress Administration program was made, which created jobs on government projects, such as, construction of roads, bridges, public parks, also paid for federal art, theater, and writing programs. Additionally, the social security act that provided aid to elderly, individuals temporarily unemployed, disability insurance, and child welfare benefits. It can be looked at as a success because it restored confidence in the American people, people were given work in government projects, valuable work was carried out by the in building schools, roads and hospitals, and FDR rescued the banking system from collapse.
Not only did FDR’s confidence and optimism help the United States through it all, but also some significant figures like, Huey Long, Francis Townsend, and Charles Coughlin influenced his ideas, as well as many future decisions. Ultimately, Roosevelt created economic and social programs of the New Deal, which helped bring about the beginnings of a national recovery.