An Overview and Lessons Learned from the Great Depression

An Overview and Lessons Learned From the Great Depression

The Great Depression was the most terrible and longest economic collapse in the history of the modern industrial world. The stock market crash in 1929 began the depression (Smith, 2002). The events associated with the Great Depression had destructive effects on the United States. During the depression, there was a decline in the production and sale of goods as well as an increase in unemployment. Many banks and businesses were forced to close their doors because of the country's economic decline. The farmers also felt the effects. Many farmers fell into bankruptcy that led to people losing their homes and savings (Library of Congress, 2002). The financial losses of the people caused them to depend on charity so they could survive. Most people were unable to help themselves during this devastating time so they looked to the federal government for help.

Most Americans were dissatisfied with economic programs President Herbert Hoover had in place. Franklin D. Roosevelt was then elected. While Roosevelt was in office, the New Deal was formed (Microsoft Encarta Online Encyclopedia, 2005). The new economic program signified a new relationship between the American people and their government. The American people accepted the government's role in regulating the economy and the lives of the American people. The New Deal represented a trend toward the abandonment of laissez-faire capitalism (Anonymous, n.d.). The New Deal brought hope and optimism to a demoralizing time.

Roosevelt's New Deal was a way to redistribute wealth from the rich to the poor. He was also obsessed with the notion to obtain and keep a balanced budget. During Roosevelt's first few years in office, many programs were implemented. Some of the vital programs established are the Civilian Conservation Corps, Agricultural Adjustment Act, Social Security Act, Federal Housing Administration, and the National Housing Act (Mintz, 2003). Various other programs were also formed throughout the New Deal legislation. Most of the programs were implemented to reduce unemployment, assist businesses, provide security for the elderly, disabled, and needy, and finally, to regulate banking and the stock market. With much success, the economy did turn around. The programs implemented by Roosevelt stabilized the economy. The onset of WWII ended the Great Depression (Microsoft Encarta Online Encyclopedia, 2005). The American economy experienced the greatest growth in U.S. history.

The Great Depression taught me to reevaluate my values in life. Many individuals in the 1920's chose to live beyond their means. The roaring twenties was a prime example of people having the ability to buy products on credit and acting as if they can afford to live the luxurious lifestyle. The luxuries are fine to have as long as the middle-class income can support the lifestyle. People in the 1920's took advantage of having a line of credit available to them. Even in the 21st century, people still live beyond their means. The only difference between the early twentieth century and the present day is the fact that those in the past were forced to give the luxuries back while the individuals today have the ability to keep most of the luxuries but the means to file bankruptcy when their styles of living go