How Did The New Deal Cause The Great Depression

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The Great Depression and The New Deal In the 1930’s, the worst economic disaster in American history took place. Many people lost their jobs and became unemployed, starved or died because of lack of resources, and went without basic necessities. This economic catastrophe is now known as the Great Depression. Many early history classes teach that the stock market crash caused the Great Depression. However, the stock market crash and the Great Depression only show a correlation, not a causation. In fact, Eric Foner, an American Historian and the author of several published history books, said that “The stock market crash did not, by itself, cause the Depression. Even before 1929, signs of economic trouble had become evident.” This brings up the question, what caused the Great Depression. Well, Eric Foner goes on to say that the cause of the Great Depression was “…banks failing, land remaining undeveloped, and mortgages foreclosed.” These causes, along with “The highly unequal distribution of income and the prolonged depression in farm regions…” caused deflation in America. Which, in turn, led to …show more content…
Given the information above, the New Deal did not, in fact, end the Great Depression. It was merely helped ease the effects of the Great Depression for certain peoples. This was done by creating more jobs and government supports for people struggling. The Great Depression continued until the end of World War 2.
In conclusion, the New Deal did a number of things for America, positive and negative, even though it didn’t end the Great Depression like was intended. First, white males and Indians American freedoms were expanded due to the New Deal. But, white women and blacks’ American freedoms were limited. The New Deal created many new bills and laws that helped cushion the impact of the Great Depression on disabled people, unemployed people, and poor families with children. Some of these bills and laws are still in use
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