The Great Depression

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What were some problems and solutions during the Great Depression?

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There were many problems during the Great Depression. One problem dealt with unemployment. We had the highest unemployment rate we ever had at 25% of the population unemployed. We also had financial problems. Banks closed and the stock market crashed. Individuals and businesses lost much, if not all, of their savings. People were losing their homes and farms because they couldn’t pay their mortgages. Because of high tariffs, our trade was low. The policies of the Federal Reserve Board made it harder for people and businesses to borrow money to try to do things that would stimulate the economy and create jobs. There were many problems that existed during the Great Depression.

Many things were also done to try to provide solutions. The government spent a lot of money on job creation programs. The Civil Conservation Corps provided jobs for young, unemployed men in the field of conservation. The Civil Works Administration and Public Works Administration created many construction jobs. The government tried to help farmers by paying them not to grow crops as a result of the Agricultural Adjustment Act. The banking industry and investment industry were reformed. The Securities Act created the Security and Exchange Commission to regulate the stock market. The Glass-Steagall Act provided insurance for savings accounts and prevented commercial banks from speculating in the stock market. The government helped some people refinance their mortgages with the Home Owners Loan Corporation and the Farm Credit Administration programs. All of these programs were part of President Franklin Roosevelt’s New Deal program. There were many attempts made to provide solutions to the problems that existed during the Great Depression.

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