Question 1: What caused the Great Depression? Answer: While the immediate trigger of the Great Depression was when the Stock Market crashed on October 9, 1929 (“Black Tuesday”), there were other underlying issues that attributed to the weakness in the U.S. economy. Other factors: Overproduction in industry, “by 1920 the booming construction and automobile industries began to lose vitality as demand sagged. In fact, increases in consumer spending for all goods and services slowed to a lethargic 1.5 percent for 1928 – 1929.” Concentration of wealth in the hands of the few, “by 1929, 1% of the population owned 36 % of al personal wealth. The wealthy had more money than they could possibly spend and saved too much. The working and middle classes …show more content…
Question 2: How did the Great Depression affect Americans and American society? {Include employment, marriage and family, as well as psychological impact}. Answer: The Great Depression was difficult for thousands of people. “Between 1929 and 1932, an average of 100,000 people lost their jobs…at least one worker in four could find no employment.” Millions of Americans found themselves homeless, as they were evicted from their homes because they were unable to pay their mortgages or rent. They struggled to find places to live. “Marriages and births…plummeted.” Low self-esteem was commonly see among fathers in the family unit. Being unable to provide adequate shelter, food, and other necessities was truly burdensome, and over time, took a toll on the self-worth of these men. The hardships of the Great Depression had a huge psychological impact. The drastic change in living conditions compounded by the fellings of shame and self-doubt left long –lasting invisible scars. “I would go stand on the relief line and bend my head low so nobody would recognize me.” Some of the depressed population were truly desparate and committed …show more content…
This agency ensured Americans of bank deposits of up to $2,500.00. The FDIC guaranteed a specific amount of checking and saving s deposits for its bank members. Question 4: Was the New Deal a success in restoring American prosperity? Answer: Determining whether the New Deal was a success is difficult to answer. If we look at the unemployment rates between 1925 and 1945, the unemployment rates do not drop until the outbreak of WWII (1945). However, FDR and his New Deal programs did accomplish many things. The New Deal created economic stabilizers which would regulate swings in the business cycle, federal insurance for bank deposits, unemplymet assiatnce, and greater control over money and banking.” FDR acted as a ‘political broker.” He was concerned about the welfare for all Americans. Lastly, under the New Deal FDR was successful in revitalizing democracy, “African Americans came into the party, joining workers and farmers. Political attention shifted to from cultural battles over Prhibition and immigration restriction to bread and butter issues of economic