The Great Depression: Causes and Effects

In the American history, the Great Depression was one of the most significant setbacks to the nation’s economy. The event lasted for a decade (1929 to 1939), whereby it began as a result of the stock market crash (DiNunzio, 2014). The failure of the stock market resulted in a panic on the Wall Street that affected the number of investors. Notably, one year after the commencement of the event, a considerable number of banks had failed in their operations. Also, the people lost their money during the period because there was no precedent for federal deposit insurance.

Furthermore, savings and investment at this time were worthless, and the credit ceased to exist (McElvaine, 2010). History reveals that the Great Depression resulted in a significant drop in investments and computer spending as many companies unemployed their workers. In 1933, the depression reached at its lowest point with more than 15 million Americans unemployed (DiNunzio, 2014). As the situation continued, the reduced rate of expenditure aided in the alleviation of the economic situation.

            Another factor that led to the Great Depression id the government. During the period, the administration implemented measures to protect the nation’s industries from external competitors in the overseas by passing the Tariff Act of 1930 (McElvaine, 2010). The new regulation imposed a significant rate of tax on a wide-ranging number of import goods. Consequently, the nation faced retaliation from the trading partners through tariffs on products made from the U.S. Hence, the enactment of the Tariff Act exacerbated the event between the year 1929 and 1934 by reducing world trade to a significant proportion (DiNunzio, 2014). Environmental deterioration was also pivotal to the heightening of the Great Depression. The event of drought from Colorado to Texas for a year combined with poor farming practices decreased the level of economic growth substantially (McElvaine, 2010).

B

            The Great Depression amounted to many problems which prompted the New Deal to address them through the implementation of several strategies. The first way was the introduction of the Emergency Banking Act of 1933, major legislation initiated by President Franklin Roosevelt (DiNunzio, 2014). The above was notable following Roosevelt’s inauguration whereby he chaired a special Congressional meeting that eventually declared a four-day holiday that ascertained shutting down of the entire banking system. The Act was unanimously approved and signed to the law that provided the banks with financial security an opportunity to resume operations. Roosevelt urged the Citizens to save in the new banks, attracting the confidence of investors. The legislation was a success, and the banking situation began stabilizing (McElvaine, 2010).

            The New Deal also created organizations to help the nation recover from the adversities of the Great Depression. Also, the government also implemented safeguards that would limit future occurrences or imminence of such a catastrophe. The government created the Civilian Conservation Corps to address unemployment, and the initiative was successful as many Americans acquired jobs (McElvaine, 2010). Another organization called the Civil Works Administration addressed the challenges of the economic depression by creating new opportunities for employment for the unemployed, but the organization did not meet its expectations and became discontinued in 1934. The Federal Housing Administration (1934) was pivotal in curbing the housing crisis through the regulation of housing conditions and mortgages (DiNunzio, 2014). Notably, most of the organizations created during the time remain in existence to-date and provide significant benefits to the American society.

            The New Deal foresaw the implementation of relief programs to counteract the effects of the Great Depression. Roosevelt believed that implementing the strategy would protect the nation from future occurrences of economic depression by ensuring the stability of the country (McElvaine, 2010). Federal Emergency Relief Act is an example of the program created with the aim of providing relief to State governments and employ qualified individuals in different sectors. More so, the initiatives directed the employment of unskilled laborers to develop the nation through an infrastructural upgrade on roads, bridges, pipelines, and airports (DiNunzio, 2014).

C

C1

            The arms race significantly contributed to the rise of Cold War tensions. In 1945, the U.S created an atomic bomb with the objective of ending the World War II and control foreign policy. Also, the government effortlessly pursued the combat against the global spread of Communism. Therefore, the nation authorized assistance to countries such as Greece that was anti-Communists. However, Russia ended the U.S monopoly of nuclear power in 1949 when the country acquired the secret blueprints of the weapon’s original design and detonated an atomic bomb (Westad, 2017). Hence, the end of the above monopoly commenced the Cold War.

C2

            The emergence of differing ideologies following the end of World War II increased the tensions of Cold War. Russia and the United States had opposing counts on government policies. The above is explainable by the context that the U.S is a democratic nation where citizens have wide-ranging rights and freedoms, whereas Russia is a Communist country that operates with an authoritarian and dictatorial form of governance, thus limited freedom. Also, the U.S was a capitalist nation, a representation that Stalin significantly opposed. Russian ambition to spread Communism in Europe and American effort to stop these occurrences sparked diversity that amplified the Cold War tensions (Westad, 2017).

C3

            The tensions of Cold War had a considerable outcome on the Domestic policies of the nation and its culture. During the 1950s and 1960s, the literature created a reflection of fear that the Soviet Union would take over the world through its influence. Also, books explored the possible nature of Soviet rule should it succeed in global domination (Westad, 2017). Such speculations led to the production of anti-communist media to promote American patriotism. The suspicions of Communist activities in the U.S ruined many lives through unsubstantiated claims and accusations while uprooting Communism. Racial inequality also became apparent during the period as the Africans were treated as minor citizens of the country despite the abolishment of slavery many decades ago (Westad, 2017).

D

            The Feminist movement is one of the significant historical events that resulted in changes in legislation and cultural shifts. In the early 20th century, feminism focused primarily on women rights such as voting. The ratification of the nineteenth Constitutional Amendment declared the entitlement of American women to all the rights and responsibilities of a citizen. In the 1960s, the feminist movement principally focused on the lives of women entailing their sexuality, families, and work (Horner, Notman, & Nadelson, 2013).

            The end of World War II saw a significant improvement in the lives of women through simplification of house-making tasks by household technologies and change in the life expectancy. However, despite the significant increments in the rights of women, sexual inequality still existed because of varying cultural views and legal precedents. Publication of editorials that promoted gender equality was pivotal to the movement’s progression (Horner et al., 2013). The movement also lobbied for employment discrimination protection and equal pay.

            The rise of the feminist movement sought to push for laws that provided indiscriminate educational opportunities, child care expense tax deductions, banned employment discrimination, and granted maternity leave rights. Consequently, legislation called the Equal Rights Amendment was created, and abortion and contraception became liberalized (Horner et al., 2013). Therefore, the history of feminist movements reveals that the organization faced challenges and failures and successes, but eventually, the movement attained its goals.

References

DiNunzio, M. R. (2014). The Great depression and new deal: Documents decoded. ABC-CLIO.

Horner, M. S., Notman, M. T., & Nadelson, C. C. (2013). The challenge of change: Perspectives on family, work, and education. Springer Science & Business Media.

McElvaine, R. S. (2010). The Great Depression: America 1929-1941. Crown/Archetype.

Westad, O. A. (2017). The Cold War: A world history. Basic Books.