There were many causes of the Great Depression. some of which include “The Great Crash” of the stock market. deficiency of disbursement by the mean individual. the Smoot-Hawley Tariff Act and a monolithic drouth in the Mississippi Valley. From this nation-wide crisis came Social Security as we know it. the creative activity of the Tennessee Valley Authority Act. the creative activity of the SEC and stricter banking and stock market ordinances. Overall the Great Depression had a big impact on The United States that can still be seen today.
Causes of the Great Depression
In January of 1929 an column ( Encyclopedia of American Studies. 2010 ) said “It has been 12 months of unprecedented progress. of fantastic prosperity. If there is any manner of judging the hereafter by the yesteryear. this new twelvemonth will be one of congratulation and hopefulness. ” This was evidently non the instance. When the stock market crashed on October 29. 1929. it was perchance the greatest lending factor to the depression. Some believe. though falsely. that the “Great Crash” is the same as the great depression.
The stock market clang had people scared to pass money. People no longer bought about every bit many merchandises which led to a bead in production. which in bend led to layoffs in the work force. Coupled with these layoffs. were immense debts being defaulted on by stock holders ; this all necessarily to the failure or shutting of many Bankss.
The Smoot-Hawley Tariff Act was passed in June 1930 to protect husbandmans affected by the Great Depression from foreign manufacturers. This Act raised the duties or revenue enhancements on imports to a new. unprecedented high. It was originally intended for agribusiness but after it eventually passed. it extended to about all parts of import.
A monolithic drouth occurred in the Mississippi Valley in 1930. This was non a direct cause of the Great Depression ; it was a big lending factor. In the Dust bowl. as this portion of the state was referred to. farmer’s harvests dried up therefore go forthing the husbandmans with nil to sell. Therefore they couldn’t pay debts or revenue enhancements and had to sell their farms for small to no net income. Effectss of the Great Depression
In 1933. the Banking Act was passed by Congress. This was an effort to convey back fiscal stableness to the state. This act is frequently erroneously called the Glass-Steagall Act. but the Glass-Steagall act was merely portion to the Banking Act. The Glass-Steagall Act pertains largely to dividing commercial banking from investing banking and securities houses. This act was named for its sponsor’s. Senator Carter Glass ( D ) of Virginia. and Representative Henry B. Steagall ( D ) of Alabama. The creative activity of the Federal Deposit Insurance Corporation ( FDIC ) was besides a portion of the Banking Act. The FDIC works similar to your mean insurance company. Banks pay premiums to the FDIC who in bend promises to see every member’s depositor’s histories of up to two hundred 50s thousand dollars each. The FDIC besides makes certain that the establishments it insures are runing soundly. It besides manages Bankss that are shuting.
In 1934 the Securities and Exchange Act was passed. the superintendent of this act is called the Securities and Exchange Commission ( SEC ) . The SEC was created to do certain that the “Great Crash” ne’er happened once more. New ordinances were put in topographic point to forestall corporations from mistreating the purchasing and merchandising of stocks. The SEC besides regulates the agents and traders who are licensed through them.
The Tennessee Valley Authority Act ( TVA ) was created to assist the Tennessee Valley. which was in bad form even before the Great Depression. ( Kubiszewski. I. & A ; Black. B. . 2006 ) ” The Act established the Tennessee Valley Authority ( TVA ) . which oversaw the development of resources within the full vale. It chiefly focused on the building of dikes to bring forth. sell. and distribute electrical power in a mode that minimized waste production. With entree to electricity. husbandmans were able to utilize newer. more efficient engineerings to better output. and industries began traveling into the vale. increasing employment. ” The TVA country consists of most of Tennessee. parts of Mississippi. Kentucky. Alabama and smaller parts of Georgia. Virginia and North Carolina. The TVA is still enacted today.
In 1935 President Roosevelt passed the Social Security Act. This act worked to supply retirement to aged persons of measure uping age which had non antecedently been on the federal degree. This act besides provided unemployment benefits to workers who qualified. Drumhead
The Great Depression was one of the most annihilating fiscal catastrophes the United States has of all time seen. ( Poverty and the Government in America. 2009 ) “Until the Great Depression. poorness alleviation was seen as chiefly the duty of metropoliss and provinces. ” The federal authorities passed several Acts of the Apostless such as the Banking Act and the Tennessee Valley Authority Act that are still around today. The SEC and Social Security that are around today came out of the Great Depression.
Kubiszewski. I. & A ; Black. B. . ( 2006 ) Tennessee Valley Authority Act of 1933. United States. Retrieved from World Wide Web. eoearth. ort/TennesseeValleyAuthorityActof1933 Great DEPRESSION. ( 2009 ) . In Poverty and the Government in America: A Historical Encyclopedia. Retrieved from hypertext transfer protocol: //www. credoreference. com. placeholder. cecybrary. com/entry/abcpga/great_depression Great Depression. ( 2010 ) . In Encyclopedia of American Studies. Retrieved from hypertext transfer protocol: //www. credoreference. com. placeholder. cecybrary. com/entry/jhueas/great_depression
The Great Depression
Thesis Statement: The Great Depression had a big impact on The United States that can still be seen today. Causes:
* The “Great Crash” of the stock market
* People stopped purchasing which led to bank failures
* Hawley-Smoot Tariff Act
* Drought in the Mississippi Valley
* Stricter banking and stock market ordinances
* Tennessee Valley Authority Act
* Social Security Act
* Creation of the SEC