Economical Aspect: The New Deal

When the Great Depression started, the U. S. economy broke down rapidly. Although the president Herbert Hoover was an optimist, the majority of people blamed him for this disaster.

After a couple of years in crisis, presidential elections came up in 1932. Obviously Hoover didn’t have a chance for a reelection, so Franklin Delano Roosevelt won.

President Franklin Delano Roosevelt

U. S. citizens had high expectations on President Roosevelt; they had hopes that he could solve all their difficulties. They deeply believed that he cared for the common best and he would end the depression.

As soon as Roosevelt took control he established several programs that became known as the New Deal. This New Deal programs were commonly called by their initials. For example AAA, Agricultural Adjustment Administration; CCC, Civilian Conservation Corps; WPA, Works Progress Administration and many others. These  project main objective was t reduce unemployment in the country.  

WPA, Works Progress Administration

Another measure Roosevelt took was to close all banks until they were stabilized enough to open. He introduced major changes in U. S. economy, using increased government regulations and massive public projects.  

For many, Roosevelt was a real hero, because his “New Deal” gave the government power and helped ease the Great Depression.

Looking at the big picture, it’s really uncertain to know how much Roosevelt plan helped to end the big economic crisis.  It is true that the “New Deal” relieve the lack of money of the crisis, however the economy in the U. S. by the end of the 1930s still extremely bad.

The major turn for the U.S. economy occurred after the bombing of Pearl Harbor and the entrance into World War II. Once the U.S. was involved in the war, both people and industry became essential to the war effort. Weapons, artillery, ships, and airplanes were needed quickly.

Men were trained to become soldiers and the women keep the factories going. Food was needed to grow for both, home front and overseas in war.

Despite this active intervention, mass unemployment and economic crisis continue. In 1939 at the World War II outbreak it started reducing in some way.

The Great Depression ended as nations increased their production of war materials at the start of World War II. This increased production provided jobs and put large amounts of money back into circulation.

 That is the reason why unemployment dropped rapidly as factories were busy with orders from overseas for armaments and munitions, needed for war.

The Great Depression officially ended completely in 1941.