Analyze The Impact Of Social And Economic Effects On The Economy

It’s obvious to put into perspective of the stock market downfall as a singular element of the Great Depression. Even though the causes included bank failures, economic policies, and reduction of supply production, etc…in addition to the workforce, an economy that was in great condition can still recover from such deflation. Interestingly, before the economic collapse, the wealthiest of Americans possessed about a third of products and resources (U.S. History, 2008). However, it created barriers and limited economic growth. For example, those that obtained great wealth seldom distributed their investments back into the economy because they focused more on large profits. It would have been significant if such investments were carefully dispersed and circulated amongst the middle and lower class individuals. Even though the United States (U.S.) had a fundamental economic structure, the system began to weaken provided that supply and prices were considerable with less demand, numerous unreasonable loans from banks or other sources, and low wages followed by substantial business profits. Likewise, individuals failed to recognized the signs that lead to a recession followed by an economic collapse months later. In 1928 President Hoover, Republican, was elected President. He was allegedly responsible for the Great Depression, and he also allowed the disorganized excesses of the market, enabling things to worsen after the 1929 crash (Scaliger, 2008). Therefore, his approach to government intervention barely created a positive outcome on the economy. During his fiscal years, he inclined spending to $3.3 billion in 1930, $3.6 billion in 1931, and $4.7 billion and $4.6 billion in 1932 and 1933, which is a 48% increase during his four years in office (Horwitz, 2008). The government’s role on various circumstances was inefficient. Policies implemented worsen and extended the Depression. For instance, there was a bill that increased prices of natural produced and consumer products leaving farmers in debt, additionally; it also decreased importing and made it difficult for countries such as Britain and France to restore from their debt (Shi & Tindall, 2016). Currently, the government including many Americans can learn from difficult ordeals in the past. Great understanding can increase the satisfaction on the economy by the American people. In fact, more Americans are not happy with the economy and the direction in which the country is going. However, the government must make the efforts to improve it. According to the Pew Research Center 74 percent of people reported that they were either angry or unhappy with the government, and 73 percent disagree of the policies Congress is implementing (Allen, 2010). Conversely, Franklin Roosevelt, Democrat, was nominated as presidential candidate. Later he addressed the issues regarding the problems of the Depression. He won the election in which the results were significant in his victory. Pertaining to the results, Roosevelt had approximately 22 million votes and Hoover estimated with 15 million votes. Such results exhibited the need for change in America and its economy. Therefore, The New Deal was needed to get the country back on track. The New Deal focused on banking laws, working and emergency relief programs, agricultural policies, Social Security Act, and programs to render farmers and immigrant workers. Supposedly, before, President Hoover had offered a new proposal to Congress of a program that would help banks, businesses, and institutions financially; legalize immigration, increasing and expanding employment, and enforcement of laws to manage a variety of industrial competition, etc…(Horwitz, 2008). Although, it is claimed that Roosevelt, when inaugurated in office, modified Hoover’s proposal in …show more content…
In other words, the government made the effort to minimize their involvement in many issues unless such circumstances will greatly affect the economy. Nonetheless, there’s a message that today’s American people can understand from previous events. Perhaps, the social programs and the financial and economic systems that were produced by the New Deal contributed to economic and financial growth for a while. Significantly, Americans’ confidence and faith in the country was strong against the challenges of another recession. Even though there was a recession in 2008, many Americans recovered some way. For example, Americans had enough to live on emergency funds, family support, and welfare programs that allowed time for