The Wall Street Crash of 1929 generally refers to the stock market crash, which led to the economic downfall of the whole country. Experts emphasize the rapid growth of the American market in the 1920s as the primary cause since people were eager to make a profit from the stocks (Morris, 2017). This tendency led to false expectations and an abundance of credits, which ultimately crashed the market (Morris, 2017). Combined with the recession of the agricultural industry and the inability to maintain the GDP growth, the stock market crash was inevitable (Morris, 2017). From these considerations, it is unfair to blame Herbert Hoover entirely for the eventual Great Depression; however, his policies and response to the crash are generally considered ineffective (Morris, 2017). Furthermore, many countries globally were dependent on the American economy and were heavily hit by the consequences of the Great Depression (Morris, 2017). Ultimately, the Wall Street Crash is the most notable American stock market crash in history and one of the Great Depression causes.
As the necessary response to the consequences of the Great Depression, Franklin D. Roosevelt implemented the ‘New Deal’. The three purposes of the program were to assist the unemployed, recover the national economy to pre-crisis levels, and prevent a consequent economic downfall (Bindas, 2021). The New Deal program was considerably practical, and some of its policies are still in effect today. For instance, Social Security policy and Soil Conservation Service demonstrated immense results in the 1930s and still function in contemporary society (Hadley, 2020). However, for instance, the National Industrial Recovery Act implemented shortly after Roosevelt’s inauguration is generally considered a poor decision that led to thousands of people losing their jobs (Bindas, 2021). It increased the overall wage level, making it unprofitable for employers to hire new workers, resulting in even more unemployment during the early years of Roosevelt’s presidency (Bindas, 2021). Nevertheless, the New Deal successfully reformed the American economy and mitigated many negative consequences of the Great Depression.
References
Bindas, K. J. (2021). The New Deal and American society, 1933-1941. Routledge, Taylor & Francis Group.
Hadley, D. (2020). 7 New Deal programs still in effect today. ThoughtCo. Web.
Morris, C. R. (2017). A rabble of dead money: The Great Crash and the Global Depression: 1929-1939. PublicAffairs.