Economic History Essay

The frugal depression of the 1930s was a time of not bad(p) challenges for the the Statesn community. Historically, it is remembered as the time when most Americans faced losses of homes, farms, jobs, and lives because of the sourness of life following the onset of the Great Depression.While there ar differing opinions by scholars as to what was the cause of the Great Depression depending on their suffer personal view of the American economy, the end result was the same and the plan implemented to scramble America back on track, the newly Deal, was unmatched of the most wide-reaching and important social programs put in place by an American president in history. The causes of the economic depression ar wide-ranging and extremely complex.In 1929, the stock market crash and the failure of some(prenominal) American banks resulted in the loss of fortunes for many Americans, and they were not able to convalesce their money because of the system in place at the time. The decli ne into the economic depression happened in the following three years, and scholars unsounded debate what the authentic causes were. Some blame the free market, while others feel that the government was not involved enough in the economic development of the nation. Other economists mind to the changes in the British economy.The British returned to the Gold Standard at pre-World fight I parities, and economists like Peter Temin view this as the major footing for the economic depression in America during this period. Other changes attentioned bring near the depression as well. When businesses and people began to not be able to have their debts, including mortgages, because of price deflation or lower demand for products, with the result being a 25% unemployment rate. In the end, the result was the same exiguity run uncontrolled and a sense of unhopefulness amongst Americans.The first time poverty was seen as a social problem was during the Great Depression, a time when so ma ny Americans were facing economic despair and lack of employment. It was a hopeless time for many Americans, and the President responded with strong social programs to help get the country back on track. The bare-ass Deal, including the Works Progress organisation and Social Security, helped to give Americans something to fall back on when times were tough, as well as something to build upon to help them get out of their accredited state of helplessness.Regulations were instituted, minimum prices and wages were put into place, encouraged unions, and setting get codes and standards. It was the first time the government had given a hand up to Americans in poverty. The New Deal was radical in many slipway because prior to this, the government did not view poverty as a social problem that the government needed to deal with. The American people were suffering from hard time, as was American business, and because of this economic depression America was set back in terms of growth.Thi s change caused the President to radically change the way the government thought about poverty. When people theme the progression of poverty from being simply a part of prevalent American life to being a social problem that require attention and governmental intervention, both on a national and international level, they need to understand that for many years poverty was thought to be a necessary evil, and many people felt that they could not help overcome the poverty they saw many people living in. Without this balance, a society will fall into a situation where there are only those in poverty and those in wealth.When Roosevelt was faced with issues of extreme poverty in a large segment of the American public he knew that he had to react. In Roosevelts case, he reacted with short-term and long-term solutions in the form of help to find the unemployed work and Social Security, still in use today. These radical new programs, known as the New Deal, were an important movement in Ame rican economic history as it marked a time when the United States began to take more pull through in the business and economic affairs of its nation, starting with the programs implemented with the New Deal.