Effects Of The Great Depression
The Great Depression caused a myriad of changes in American society and economic policies, many of which linger to this day.
Click here for facts about the effects of the Great Depression. Below are some of the primary effects of the Great Depression:
Stock Market And Banking Regulations
After the stock market crash of 1929 and the collapse of more than 40% of American banks by 1933, strict trading and banking regulations were put in place, as well as financial protections, enforced by the newly formed Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC).
Franklin D. Roosevelt’s New Deal An Effect Of Great Depression
Franklin D. Roosevelt introduced programs between 1933 and 1938, designed to help America pull out of the Great Depression by addressing high rates of unemployment and poverty. An array of services, regulations, and subsidies were introduced by FDR and Congress, including widespread work creation programs. The cornerstones of the New Deal were the Public Works Administration and the National Recovery Administration.
Expanded Role Of Government An Effect Of The Great Depression
FDR’s New Deal increased the role of government in people’s lives to unprecedented levels, levels that continued long after America had recovered from the Great Depression.
Mass Migration An Effect Of The Great Depression
When the Dust Bowl conditions in the 1930s led to farmers abandoning their fields, mass migration patterns emerged during the Great Depression, with populations shifting from rural areas to urban centers.
Societal Change An Effect Of The Great Depression
Many people who survived the Great Depression would remain frugal throughout the rest of their lives, wary of banks, apt to hoard food, and suspicious of the stock market.