The Aftermath
The Great Depression was a time period of history which called for change within the U.S. government and economy. To this day it is still evident that these changes still affect how the economic society runs today. The government became involved in the economy after President Franklin D. Roosevelt won the election in 1932. To many people during this period of time, President Roosevelt was a savior and helped ease the negative effects of the Great Depression. In order to “ease”, or try to ease, the negative standing effects, Roosevelt came up with the New Deal Programs. Looking back on this it is certain that these programs eased the pain, but all in all the economy was still awful by the end of the 1930’s.
After the crash of the stock market many banks had to shut down because they invested their clients money into certain stocks. This quickly caused many people to remove their investments with the banks out of fear of losing their life savings. Unfortunately, some people did not make it to the banks on time and they went bankrupt along with those who invested in stocks. What seemed to be a quick way to “strike it rich” actually became the quick way to bankruptcy. Along with the citizens who lost their money, businesses and industries also lost most of their capital because of investments into the stock market. This loss of money within the industries caused them to cut back their workers. A direct result of this was an increase in unemployment rates.