American Great depression

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Kenyatta University *

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ECONOMIC H

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Economics

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Nov 24, 2024

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Last Name 1 American Great Depression Students Name Institution Affiliation Date The Great Depression was one of the hardest times in American history, creating a need for multiple policies to help resolve economic issues Yawp, Chapter 23). The first approach to resolving the Great Depression was comprised of Herbert Hoover policies. Hoover was majorly linked to a hands-off, free-market stance. His policies advocated for minimal government intervention, instead favoring voluntary collaboration among businesses and individuals. He also established the Reconstruction Finance Corporation (RFC), which issued loans to struggling banks and businesses, and these were relatively modest as compared to other interventions. Another approach to resolve the great depression issue was by adopting Franklin D. Roosevelt (FDR) policies (Yawp, Chapter 24). FDR's New Deal comprised policies and initiatives aimed at countering the Great Depression by leveraging government intervention and economic stimulus. It aligned with Keynesian principles, emphasizing heightened government expenditure, job creation efforts, and the establishment of social safety nets. Key programs included the CCC, Social Security Act, and WPA. Lastly, one can consider Huey Long’s approach to addressing the Great Depression menace. Huey Long was regarded as a populist and occasionally socialist for his policy decisions, which comprised the distribution of wealth, raising taxation on the wealthy, and having universal access to healthcare and education. His policy on ‘sharing our wealth’ focused on accumulating resources to guarantee economic security for all citizens.
Last Name 2 Among the three approaches, I would support Franklin D. Roosevelt’s New Deal Approach in addressing the Great Depression issue in America. This choice is based on a belief that the New Deal offered a more comprehensive and proactive response to the economic crisis by acknowledging the role of government in resolving the widespread suffering and economic instability during the great depression era. The New Deal of Franklin D. Roosevelt was a more forceful and innovative approach to combating the Great Depression. In reaction to the severe economic crisis, it recognized the importance of government engagement and economic revival. The New Deal included a wide range of initiatives and programs meant to provide aid right away and foster long-term recovery. Aspect job creation was the key pillar of the New Deal as presented by Franklin D. Roosevelt. Jobs were created through different initiatives such as the Civilian Conservation Corps (CCC) and the Works Progress Administration (WPA), whose focus was on offering gainful employment to millions of Americans who were struggling with unemployment during the Great Depression. These programs not only provided individuals with essential income but also instilled in them a sense of purpose and hope during a dire period in American history. Moreover, the infusion of wages into households through these employment opportunities had a broader economic impact. It bolstered consumer spending power, which, in turn, stimulated demand for goods and services, ultimately contributing to the nation's economic recovery. Furthermore, the social aspect of the New Deal was also crucial as it contributed to the wellness of the Americans during the harsh and difficult times of the great depression. The deal was associated with the introduction of the safety net that enhanced financial security for the disabled and elderly people in the community. This helped in reducing the risk of poverty in old age since the elderly shall be guaranteed some funds from the program. The program also helped address
Last Name 3 the critical needs for both social welfare and economic stability during the hard period of economic uncertainty. The New Deal was also primarily focused on government support with the aim of helping the Americans recover from the great depression. It was regarded as the government’s comprehensive strategy focused on the intervention of the great depression and economic support to the citizens. Some of the reporters, like Martha Gellhorn, were sent by the government to observe and report on the struggles the ordinary citizens were going through during the harsh economic time. It was clear that the commitment of the government could help in identifying, understanding, and addressing the needs of the citizens during the economic hardship period. According to Johnson's (425) discussion on the New Deal Experiment, it is clear that the policy helped in addressing discrimination and labor issues during the hard economic conditions. The report presented in the chapter points out the unequal treatment endured by Southern workers, especially those working in the textile sector. After labor strikes, many mills stayed closed, and those that resumed operations usually adopted restricted schedules, resulting in fewer hours worked by employees. Labor union leaders discovered that they had no work options, and mill villages faced imminent eviction threats (Johnson,430). The New Deal aimed to address labor- related issues and defend workers' rights, intending to eliminate inequalities and enhance working conditions, particularly in sectors like textiles, where workers endured suffering as a result of strikes, unemployment, and housing difficulties. The New Deal was also associated with infrastructure development projects in the country, such as the construction of bridges, roads, and public buildings. Such developments not only create jobs for Americans but also create a conducive investment environment for investors. Furthermore, there was the introduction of financial reforms by the New Deal that focused on the
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Last Name 4 regulation and stabilization of the banking sector and also preventing the economic crisis. These comprehensive measures aimed to restore confidence in the financial system and also prevent the widespread bank failures as exhibited during the Great Depression. While the New Deal was not without its criticisms and controversies, it represented a concerted effort by the government to address the multifaceted challenges of the Great Depression comprehensively. It recognized that the economic crisis was not merely a result of market forces but also a failure of the financial system and a crisis of confidence. This was in contrast with Hoover’s Laissez-faire approach, which was mainly focused on the voluntary cooperation of the business and among people. The Great Depression demanded a comprehensive initiative like the New Deal to help save the economic uncertainty of the country. Therefore, my support for the New Deal is that it provided a comprehensive, proactive, and effective response to the economic crisis as compared to Huey Long and Hoover’s laissez-faire policies.
Last Name 5 Work Cited Michael P. Johnson (n. d). Reading the American past: Eighth Edition . Selected Historical Documents Volume 2: From 1865 M P. J Johns Hopkins University The American Chapter 24 Yawp . (n.d.). Www.americanyawp.com. https://www.americanyawp.com/index.html