AP U.S. History Ch. 33 Explained - The Great Depression and New Deal

Let's explore the causes and initial impact of the Great Depression with Spark.E!The stock market crash of October 1929 marked the beginning of the Great Depression, but the problems started much earlier.Several underlying causes contributed to the economic collapse. These included overproduction of goods, uneven distribution of wealth, excessive speculation in the stock market, and a weak banking system.As the crisis deepened, unemployment rose dramatically, reaching an unprecedented twenty-five percent by 1933.The banking system collapsed under the weight of the crisis. Thousands of banks failed each year, wiping out people's savings.President Herbert Hoover's response to the crisis was limited, reflecting his belief in 'rugged individualism' and minimal government intervention.His main initiative, the Reconstruction Finance Corporation, provided loans to banks and businesses, but did little to help ordinary Americans.In March 1933, Franklin D. Roosevelt took office and immediately began his ambitious First New Deal program.His first action was the Emergency Banking Act, which temporarily closed all banks for inspection and reorganization.The creation of the FDIC helped restore confidence in the banking system by insuring deposits up to five thousand dollars.The Agricultural Adjustment Act addressed the farming crisis by paying farmers to reduce crop production and raise prices.The National Recovery Administration established codes of fair competition and labor standards across industries.The Tennessee Valley Authority was an ambitious project to modernize the rural South through electrification and flood control.The Civilian Conservation Corps provided jobs and education for young men while improving America's natural resources.These programs became known as the 'alphabet soup' agencies, as Americans tried to keep track of all the new government initiatives.In 1935, FDR launched the Second New Deal with even more ambitious programs.The Works Progress Administration employed millions, building infrastructure and supporting the arts across America.The Social Security Act created a safety net for elderly Americans, the unemployed, and dependent children.The Wagner Act established fundamental labor rights and protections for American workers.The New Deal faced strong opposition from both conservatives and populists.Conservatives argued it gave too much power to the federal government and hurt business.Populists like Huey Long believed it didn't go far enough in redistributing wealth.The New Deal's impact on American society has been profound and long-lasting.It established the modern welfare state, protected labor rights, and fundamentally changed the relationship between citizens and their government.The Second New Deal's legacy continues to shape American society, with many of its programs and protections remaining cornerstones of our nation.