United States History since 1877

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The Great Depression and the New Deal Student’s Name Institutional Affiliation Course Name and Number Professor’s Name Date

The Great Depression and the New Deal The great depression was the decade-long era from 1929 to 1939 that saw a global economic collapse on an unparalleled scale, the worst economic downturn in history in terms of duration and intensity. Even though Florida's economy reportedly flourished early in the 1920s, like other states in the United States, it declined by the decade's close. A severe drought that brought in a dust bowl just added insult to economic injury. The economies of every state in the United States were adversely affected by the Great Depression. This paper will examine the Great Depression and the New Deal that Franklin Roosevelt established. The stock market boomed during the 1920s, reaching its zenith in August 1929 1 . In August, brokers lent clients more than 66 per cent of the value of the equities they were purchasing. 2 . Despite mounting indications that the economy was faltering, policymakers and the public ignored it until it was too late. Throughout the middle of 1929, indicators of economic activity like industrial production, employment, and GDP all fell. Stock prices started falling precipitously in September 1929, and they never recovered. 3 . Around the middle of October, stock markets worldwide began a steep plunge. The following week, stock market values were volatile, and prices plunged. Many economists publicly disagree on what they believe to be the real reason for the stock market fall. There are still many knowledgeable people who insist that overvalued stock prices are what brought about the crash. 1 Degorce, Victor, and Eric Monnet. "The Great Depression as a saving glut." (2020). 2 Connell, Laurence. "Alison Collis Greene, No Depression in Heaven: The Great Depression, the New Deal and the Transformation of Religion in the Delta (New York: Oxford University Press, 2016, $34.95). Pp. 317. isbn978 0 1993 7187 7." Journal of American Studies 53, no. 4 (2019): 1067-1068 3 Smith, Andrew C. "Book review: Alison Collis Greene, No Depression in Heaven: The Great Depression, The New Deal, and the Transformation of Religion in the Delta." (2018): 131-132

The onset and depth of the Great Depression were not uniform globally. 4 The intense version effects of the Great Depression were exceptionally experienced by the European Union and the United States, But in Latin America and Japan, the heat was less severe. The Great Depression was triggered by a steep drop in stock prices in 1929. The stock market crashed completely on October 24th, 1929. More than 30,000,000 shares were sold that day 5 . On the following Tuesday (the 29th), more than 16 million shares were sold, causing more harm to the stock market on what became known as "Black Tuesday." Those who had put money into stocks began mourning their losses. Since most victims were unable to pay their bills or return their bank loans, demand for goods and services and value decreased. In addition, the Great Depression affected banks in the United States and Europe. In 1932, numerous financial institutions had already shut down, meaning people's money in those banks might be at Risk. Many individuals could not live in their homes since they could not afford essential resources such as food and shelter. Consequently, many stores had to close since fewer customers wanted to buy their products when they needed help. Approximately about 12 million individuals were left unemployed by the height of the Great Depression 6 . The Great Depression directly impacted more than 90,000 Florida families 7 . At first, Florida's government tried to help its citizens cope with the Great Depression by distributing food aid. Both actual domestic output and prices fell dramatically during that time. The industrial revolution of the U.S. decreased by 47% between the recession and the high point, with a decline 4 Greene-Hayes, Ahmad. "No Depression in heaven. The Great Depression, the New Deal, and the transformation of religion in the Delta. By Alison Collis Greene. Pp. xiii+ 317 incl. 12 figs, 1 table and 2 maps. Oxford–New York: Oxford University Press, 2015. $27.99, 978 0199371877." The Journal of Ecclesiastical History 70, no. 1 (2019): 210- 212 5 Cortes, Gustavo S., Bryan Taylor, and Marc D. Weidenmier. "Financial factors and the propagation of the Great Depression." Journal of Financial Economics 145, no. 2 (2022): 577-594 6 Anderson, Gary M., and Robert D. Tollison. "Congressional influence and patterns of New Deal spending, 1933- 1939." The Journal of Law and Economics 34, no. 1 (1991): 161-175. 7 Nersisyan, Yeva, and L. Randall Wray. "Can we afford the green new deal? Journal of Post Keynesian Economics 44, no. 1 (2021): 68-88.

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of the country's Gross Domestic Product by 30% during the Great Depression. 8 . The unemployment rate skyrocketed as many businesses shut down due to weak consumer demand, and the wholesale price index fell by 33%. Some societal effects of the Great Depression can be observed. Approximately 15 million people, or almost a quarter of the working force, lost their jobs because of the low industrial output. 9 . Prices of agriculturally linked products fell to their lowest level since the civil war, while hourly wage rates fell by roughly 50%. More than 90,000 financial institutions failed during this time as well. Such poverty and hunger instances had never been witnessed and experienced in the United States. There were reportedly breadlines in every major city, and over 20,000 individuals killed themselves that year, which was because of the difficulties they encountered 10 . Ultimately, the Great Depression hit numerous sectors of the American economy and populace. A staggering one-third of banks worldwide have closed their doors for good. Homelessness climbed as the unemployment rate reached 25%. There was a 67% drop in home prices, a 65% drop in foreign commerce, and a 10% increase in deflation. 11 . Other individuals committed suicide by jumping out of high buildings since they had no hope or option to cope with the economy. Those who did not take their own lives had their savings, houses, and jobs destroyed. 12 . Many people relied on soup kitchens and shelters during these challenging times to 8 Greene-Hayes, Ahmad. "No Depression in heaven. The Great Depression, the New Deal, and the transformation of religion in the Delta. By Alison Collis Greene. Pp. xiii+ 317 incl. 12 figs, 1 table and 2 maps. Oxford–New York: Oxford University Press, 2015. $27.99, 978 0199371877." The Journal of Ecclesiastical History 70, no. 1 (2019): 210- 212 9 Cortes, Gustavo S., Bryan Taylor, and Marc D. Weidenmier. "Financial factors and the propagation of the Great Depression." Journal of Financial Economics 145, no. 2 (2022): 577-594 10 Fronczak, Joseph. "Dead Money and Modernity: America's Great Depression." Reviews in American History 46, no. 3 (2018): 483-489. 11 Greene-Hayes, Ahmad. "No Depression in heaven. The Great Depression, the New Deal, and the transformation of religion in the Delta. By Alison Collis Greene. Pp. xiii+ 317 incl. 12 figs, 1 table and 2 maps. Oxford–New York: Oxford University Press, 2015. $27.99, 978 0199371877." The Journal of Ecclesiastical History 70, no. 1 (2019): 210- 212 12 Fishback, Price V., William C. Horrace, and Shawn Kantor. "The impact of New Deal expenditures on mobility during the Great Depression." Explorations in Economic History 43, no. 2 (2006): 179-222

get by. The Dust Bowl impacted both the Great Depression and the economy. The anchoring topsoil dried out and turned to dust after a drought started in 1931. Without good topsoil, no cultivated plants would survive. A wall of blowing sand and dust was created as severe dust storms raced across the immense plains. Farmers could not produce enough food for commercial purposes and cater for their due mortgages, and thus, many of them were declared bankrupt. As a result, they lost their farmlands to the banks and therefore had no choice but to vacate their families and ended up seeking new opportunities in the urban metropolis. To get by, Americans would save any amount of money they could. President Franklin D. Roosevelt and the administration of the U.S. put in place specific initiatives which helped the states recover from the Great Depression. Public works projects, financial changes, and new regulations were all part of "The New Deal" that enabled millions of Americans to find jobs again. Franklin D. Roosevelt became president of the United States in 1933 13 . Because of the hope and optimism he instilled in a nation desperately in need of it, his administration came to be known as the "new deal." As was noted before, he organized support under the banner of his proposal, which became known as the new deal. A proclamation was made by him to the public: "The only thing we have to fear is fear itself. 14 ." During his administration, he was bound and determined to improve things. His haste in responding to the financial crisis that weakened the country indicated his resolve. 15 . Incredibly, then-Treasury Secretary William Woodin was tasked with drafting a banking bill as an emergency reaction in less than five days. On his first night in office, he issued the orders. 13 Smith, Andrew C. "Book review: Alison Collis Greene, No Depression in Heaven: The Great Depression, The New Deal, and the Transformation of Religion in the Delta." (2018): 131-132 14 Patel, Raj, and Jim Goodman. "The long new deal." The Journal of Peasant Studies 47, no. 3 (2020): 431-463 15 Baubeau, Patrice, Eric Monnet, Angelo Riva, and Stefano Ungaro. "Flight to safety and the credit crunch: a new ‐ ‐ history of the banking crises in France during the Great Depression." The Economic History Review 74, no. 1 (2021): 223-250

The premise of the new accord is that the country and its people will recover and that their worries are unwarranted. After he took office, millions of Americans quickly found new jobs. Programs like the Civilian Conservation Corps (CCC) were established to help rectify the widespread unemployment that plagued the country. Most camp residents were young men between 18 and 25. The number of people that joined the Civilian Conservation Corps is around 40 thousand 16 . They were given provisions and garments to wear. They might use their salary to take care of their relatives back home. The Civilian Conservation Corps (CCC) helped clear land in Florida for fire lines. About 13 million trees were planted in Florida by the CCC, and the organization also established numerous parks and wildlife areas. The famous Overseas Railroad, which connected Miami and Key West and was initially built by Henry Flagler but was devastated in 1935 by a hurricane, was also rebuilt thanks to the CCC program passed by Congress. By 1938, the reconstruction above was finished. It stretched for 100 miles and had 40 or more bridges. 17 . The WPA, or the "Work Progress Administration," was another initiative of the New Deal. The industry aimed to create new opportunities for writers, editors, and researchers. 18 . A Floridian Writer, Zora Hurston, rose to fame in the 1920s and 1930s because of her contribution to autobiographical works designed in the Sunshine State. During the New Deal era, many companies started making severe improvements. Florida's financial sector was growing stronger by the day. A wealthy entrepreneur re-established Florida's banking system and assumed control. More restrictions were seen to be the answer to many of the country's economic problems during the New Deal era. 1933 Congress established the Agricultural Adjustment Act (AAA) to help 16 Anderson, Gary M., and Robert D. Tollison. "Congressional influence and patterns of New Deal spending, 1933- 1939." The Journal of Law and Economics 34, no. 1 (1991): 161-175. 17 MacDonald, Andrew E. "No Depression in Heaven: The Great Depression, the New Deal, and the Transformation of Religion in the Delta." Fides et Historia 49, no. 2 (2017): 116-118. 18 Cortes, Gustavo S., Bryan Taylor, and Marc D. Weidenmier. "Financial factors and the propagation of the Great Depression." Journal of Financial Economics 145, no. 2 (2022): 577-594.

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struggling farmers. 19 . Subsidies were given to farmers to make up for losses in output resulting from voluntary reductions. 20 . Payments would be made with money collected from a tax on businesses that process agricultural products. Ultimately, the Federal Government mainly participated in the more than 50% subsidized farm income between 1932 and 1935. In conclusion, the Great Depression is merely known as its cause, which led to a historical economic collapse which was never noticed in human history. The depression, while similar, was of different intensity and duration. The United States and Europe had states hit worse and for longer by the Great Depression than others, such as Latin America. Franklin D. Roosevelt's presidential election gave a new lease on life to a discouraged nation. He put the New Deal Programs into motion, and the economy and people's lives rapidly improved. The United States recovered from the shock thanks to his attention to fundamentals like employment and agriculture policy. 19 Das, Sanjiv R., Kris James Mitchener, and Angela Vossmeyer. Systemic Risk and the great depression. No. 7425. CESifo Working Paper, 2018. 20 Fishback, Price V., William C. Horrace, and Shawn Kantor. "Did New Deal grant programs stimulate local economies? A study of Federal grants and retail sales during the Great Depression." The Journal of Economic History 65, no. 1 (2005): 36-71.

Bibliography Anderson, Gary M., and Robert D. Tollison. "Congressional influence and patterns of New Deal spending, 1933-1939." The Journal of Law and Economics 34 , no. 1 (1991): 161-175. https://www.journals.uchicago.edu/doi/abs/10.1086/467222 Baubeau, Patrice, Eric Monnet, Angelo Riva, and Stefano Ungaro. "Flight‐to‐safety and the credit crunch: a new history of the banking crises in France during the Great Depression." The Economic History Review 74, no. 1 (2021): 223-250. https://doi.org/10.1111/ehr.12972 Connell, Laurence. "Alison Collis Greene, No Depression in Heaven: The Great Depression, the New Deal and the Transformation of Religion in the Delta (New York: Oxford University Press, 2016, $34.95). Pp. 317. isbn978 0 1993 7187 7." Journal of American Studies 53, no. 4 (2019): 1067-1068. https://doi.org/10.1017/S0021875819001191 Cortes, Gustavo S., Bryan Taylor, and Marc D. Weidenmier. "Financial factors and the propagation of the Great Depression." Journal of Financial Economics 145 , no. 2 (2022): 577-594. https://doi.org/10.1093/ser/mwz055 Das, Sanjiv R., Kris James Mitchener, and Angela Vossmeyer. Systemic Risk and the great depression . No. 7425. CESifo Working Paper, 2018. https://www.econstor.eu/handle/10419/198785 Degorce, Victor, and Eric Monnet. "The Great Depression as a saving glut." (2020). https://ssrn.com/abstract=3696369 Fishback, Price V., William C. Horrace, and Shawn Kantor. "Did New Deal grant programs stimulate local economies? A study of Federal grants and retail sales during the Great

Depression." The Journal of Economic History 65, no. 1 (2005): 36-71. https://doi.org/10.1017/S0022050705050023 Fishback, Price V., William C. Horrace, and Shawn Kantor. "The impact of New Deal expenditures on mobility during the Great Depression." Explorations in Economic History 43 , no. 2 (2006): 179-222. https://doi.org/10.1016/j.eeh.2005.03.002 Fronczak, Joseph. "Dead Money and Modernity: America's Great Depression." Reviews in American History 46 , no. 3 (2018): 483-489. https://doi.org/10.1353/rah.2018.0073 Garraty, John A. "The new deal, national socialism, and the great depression." The American Historical Review (1973): 907-944. https://doi.org/10.2307/1858346 Greene-Hayes, Ahmad. "No Depression in heaven. The Great Depression, the New Deal, and the transformation of religion in the Delta. By Alison Collis Greene. Pp. xiii+ 317 incl. 12 figs, 1 table and 2 maps. Oxford–New York: Oxford University Press, 2015. $27.99, 978 0199371877." The Journal of Ecclesiastical History 70 , no. 1 (2019): 210-212. https://doi.org/10.1017/S0022046918002178 MacDonald, Andrew E. "No Depression in Heaven: The Great Depression, the New Deal, and the Transformation of Religion in the Delta." Fides et Historia 49 , no. 2 (2017): 116-118. https://search.proquest.com/openview/779bf5bebc4d9c85adf59a25f50398bc/1?pq- origsite=gscholar&cbl=5620 Nersisyan, Yeva, and L. Randall Wray. "Can we afford the green new deal? Journal of Post Keynesian Economics 44 , no. 1 (2021): 68-88. https://doi.org/10.1080/01603477.2020.1835499 Patel, Raj, and Jim Goodman. "The long new deal." The Journal of Peasant Studies 47 , no. 3 (2020): 431-463. https://doi.org/10.1080/03066150.2020.1741551

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Smith, Andrew C. "Book review: Alison Collis Greene, No Depression in Heaven: The Great Depression, The New Deal, and the Transformation of Religion in the Delta." (2018): 131-132. https://doi.org/10.1177/0034637317749193i

United States History since 1877

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