Few eras in the history of American have effects on the current government of structure America, economy and level more than even the Roaring Twenties and the Great Depression. Activities in the 1920s resulted into the Depression in the 1930s, which resulted into the New Deal in year 1933-1938. The causes and effect of the economic for this period is traced back to First World War (WWI). WWI shattered people, anguish, loss and working hard provided a path for people to change. The Roaring Twenties made this happen in various ways. Consumerism attained its peak during this era. The flapper typified consumerism by her face-paint, cigarette, and ready-to-wear clothes and entertainments raised and ethics started to glide. Every of this facet covered the inflation which was taking place in prices. The wages of employees went up, but never matched the rate of the cost, which increased too and growers were further forced into debts. In the year 1924, migration became restricted, decreasing number of employees within the economy. In the year 1929, the stock market broke down and all weaknesses of the economy became clear. Nevertheless, this was not the beginning of the Great Depression but simply an indicator of its commencement (whobuiltamerica.org).
The Great Depression severely affected nationwide morals by reducing jobs. In the year 1929, just 3% of the employees were without a job, and by the year 1933 this went up to 25%. Since ¼ of the country were unemployed, people discontinued to spend money, and durable commodities like motors, housing, and machines, never sold and people who worked in these industries were forced to out of their works, and those who were working their salaries was reduced, but luckily enough they were still working. Banks gave out more funds than what they had made many people lose their savings. The life of the families also changed much, with married state and rates of birth dropping drastically while the rates of divorce went up. All this made the economy be in a shambles without hope of relief, and then comes the New Deal.
In the 1930s, the Federal Government was more engaged in day to day lives of the people than before. It happened to solve the main issues of the depression. The earlier jobs of the state governments and local like support agencies, federal aid was taken over by the Federal Government plus creating jobs for people who had no jobs. Several Americans both in the city and rural areas of the country supported the efforts of the New Deal. Social safety measures, bank accounts insurance, rural electrification, security for workers as well as federal management over the economy provided many a logic of safety in the future and government
After President Franklin Delano Roosevelt taking the office in the year 1933, wanted to bring some change to the country by rising the function and authority of the government in means Hoover did not do. For instance, Hoover was loath to use wellbeing programs to aid those who were in need and never established many community work plans nevertheless, Roosevelt employed these programs big-heartedly. During this period, the American discarded the bullion standard and put more fund into circulation that means the money in circulation was more than gold bullion. Trusting in banks was a main thing Roosevelt desired to restore, and this was achieved through Emergency Banking Act and Bank Holiday. The Federal Deposit Insurance Corporation enabled the government to restore trust by making sure that the safety of the savings of the people. (whobuiltamerica.org).
In conclusion, the several causes contributed to creating the Great Depression as harsh as it was. In the 1920s failure of several banks, and with low returns among growers and industry employees, helped set the level for the depression