How Did The Great Depression Affect The Economy

The Great Depression was the largest economic downturn in the history of the United States. It lasted for about ten years and changed economic policies in the U.S. greatly. While it may have originated in the U.S., it spread to many other countries causing unemployment and deflation in these places too. This period of economic turmoil affected the social and cultural aspects of American’s lives and its cause is still debated today. The American Stock Market suffered a crippling crash right before the beginning of the Great Depression. While this could have been an influence on the depression, it was not the cause. Many economists believe that the weak banks were to blame for the Great Depression. During this period of history, banks were still

Some Americans received welfare aid during this time, but they did so reluctantly. They believed that they needed to work hard for what they got instead of receiving free aid. They feared being called freeloaders and being criticized for the help they were given. Because of this, they would “hide their problems, acting as if they were doing well” so that their neighbors would be oblivious (Psychological Impact of the Great Depression). Family life also changed for the worse during this time. Many couples wanted to get divorced but could not afford it. Children had to grow up significantly faster and abandon their educations so that they could work. Tensions were always high in the home because of arguments that often occurred over things like food, finances, and lack of basic necessities. Because everyone in the households were fairly high-strung, domestic violence and child abuse increased greatly during this time. Also, before the Great Depression, someones worth had begun to be associated with their material possessions. This meant that people of all classes struggled with their self-worth during this time and saw themselves as worthless. Suicide rates increased and reached an all-time

Roosevelt was elected president, he had a lot of work to do. He needed to help find a way to rebuild the economy and also find a way to instill confidence in the Americans. In his first inaugural address, he stated that there is “nothing to fear but fear itself”. He hoped this would help to calm the economic fear of Americans. He went straight to work developing policies to bring America out of the depression. They later became known as the New Deal. These New Deals focused on “relief for the needy, economic recovery, and financial reform” (FDR's Fireside Chat on the Recovery Program). They put many new acts into place that helped to stabilize the economy and prevent future downturns. In combination with his New Deals, he would talk on the radio to calm people’s fears. This was very effective as almost every family had a radio at this point. His radio talks became known as “Fireside Chats” because they were very informal and relaxed making the listeners feel like they were sitting around a fire with the