The Great Depression and The New Deal - Admission/Application Essay Example

Download file to see previous pages... The US had never before experienced such a blow on its economy. The New Deal that was introduced by Roosevelt played a crucial role with respect to reshaping and structuring the US. However, in order to bring an end the prevailing poverty in the nation, the programs that were introduced were supposed to employ as well as offer millions of Americans with financial security. This way, the programs would prove as effective as well as beneficial to the entire American society. Some of the programs that were implemented still play a vital role in the country with respect to providing the people in America with economic benefits and security (Ickes 111) The Great Depression The failure of the stock market that took place in 24th October, 1929 is the one that offset the Great Depression. During this time, approximately 13 million shares were traded. This damage extended to October 29th when approximately 16 million shares got sold, and thus making this day to be declared as Black Tuesday (Merrill 703). The value associated with most of the shares that dominated the market fell sharply, which later led to financial ruin and panic. There had never before been witnessed a collapse that led to such devastating effects to the US economy. These effects were also long-term in nature. Businesses were closed and bans failed to undertake their operations in an efficient manner, and this made mane people to be jobless. The wages of the people who were able to secure their jobs fell by sharp margins (Merrill 703). The value of money went down significantly while the demand for goods went down sharply. During this time, the industrial production had gone down by more than half, and the bottom had gone outside the stock market (Zimand 326). By the year 1932, the number of people who did not have jobs went up by 13 million, and most people lived in primitive conditions that were associated with a preindustrial society that had suffered the impacts of a famine (Roosevelt 647). The agricultural sector in the economy remained in a state of devastation for many years. The onset of the depression almost brought an end to the agricultural sector whereas the drought that generated the Great Plains Dust Bowl elevated the damage further. The government also lacked sufficient income since the taxes that were paid to it fell in a dramatic manner. During this time, the government did not have sufficient ability to allow it to respond to the economic crisis. The structure of the international world trade also went down, and every nation around the world imposed high tariffs on goods that were being imported to help them protect their industrial base (Ickes 111). However, this initiative only made the conditions to become worse. Part 2 The Great Depression and the New Deal The stock market crash that took place in the late 1920s devastated the American economy leaving approximately 13 million Americans without jobs. According to Merrill (703), budget cuts, wage reduction and retrenchment occurred during this time leaving many disgruntled people. It was during ...Download file to see next pagesRead More