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Impacts of the Great Depression and the New Deal
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The Great Depression and The New Deal
The Great Depression was a period that lasted from 1929 to 1939 when World War II
officially began. It is regarded as the most severe economic catastrophe in contemporary
history. The Depression was caused by a variety of factors, including declining consumer
demand, rising consumer debt, decreased industrial production, and the rapid and reckless
rise of the US stock market. To successfully address the impacts of the Great Depression,
President Franklin D. Roosevelt established the New Deal, a set of programs and policies
aiming at economic recovery and social reform. For a precise understanding, this essay will
examine how the Great Depression and the New Deal affected various groups of people,
including women, Blacks, Hispanics, and Native Americans. It will also explore the New
Deal's long-term legacies and key historical assessments of these transformational programs.
The Great Depression was a significant time for women. During this period, they
were able to experience both positive and negative impacts. Back in the 1930s, the role of
women in America was primarily domestic. They were always in charge of managing the
homes and social duties, while men were presented as the breadwinners. However, during the
Great Depression, there was a significant change. This was mainly impacted by amending the
19th Amendment, which granted women the right to vote. From this period, women began
occupying different industries. Bellou and Cardia (2021) indicate that during the Great
Depression, there was a twenty-four per cent increase in the number of employed women in
the United States. The main reason why women's opportunities significantly increased is
because the stock market crash hit the manufacturing industries the hardest, causing
thousands of men to be laid off. New Deal programs like the Works Progress Administration
(WAP) also came in handy for the women. This program employed women in roles such as
teachers, nurses, and librarians. This perfectly illustrated the impacts the Great Depression
and the New Deal had on women.
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Apart from the female gender, Black communities also experience the effects of the
Great Depression and the New Deal. During the 1920s, African Americans held fragile
positions in the economy. The majority of them were working as domestic workers and
farmers, jobs with low earnings, poor job security, and hazardous working conditions.
Murphy (2020) indicates that during these periods, approximately eleven million Black
people resided in the American South and worked as sharecroppers, tenant farmers, and wage
workers. The Great Depression marked a new low for the Black community. This is because
it affected their labour significantly. During the Depression, Cotton's price was reduced from
18 cents to 6 cents, illustrating the significant drop in black sharecroppers (Murphy, 2020). In
northern and midwestern cities, black unemployment reached 50 per cent, while it proceeded
to 60 per cent in Philadelphia and Detroit. The rate of poverty increased among the Black
people during this period. However, the New Deal brought positive changes since the
establishment of the black cabinet. With the presence of the cabinet, the interests of Blacks
were considered, and WAP was able to provide jobs to a significant number of Black
workers. These perfectly illustrate the impacts of the Great Depression and the New Deal on
the Black community.
Hispanics and Native Americans are also individuals who experienced different
impacts during the Great Depression and the New Deal. Just like the Black community,
Hispanics, particularly those in the Southwest, experienced a lack of job opportunities. This is
mainly because they were agricultural workers who could not endure the decline in farm
prices. Despite experiencing increased rates of poverty, the New Deal was able to offer
programs that aided them significantly. Through programs such as the Farm Security
Administration (FSA), Hispanics improved their living conditions compared to migrant
farmworkers. Native Americans also experienced slight changes. This was due to acts such as
The Indian Reorganization Act of 1934, which attempted to lessen federal influence over
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American Indian matters and strengthen Indian self-government and accountability. (Durbin,
2012). This act played a significant role in halting the allotment of tribal lands, promoting
economic development, and offering support for cultural revival among the Native American
tribes. Despite having such an act, it was implemented unevenly and often hampered by
bureaucratic inefficiencies. These impacts illustrated how each community was affected by
the Great Depression and the New Deal.
The New Deal legacy left an incredible mark on the American social, economic, and
political landscape. It significantly transformed the relationship between the federal
government and American society, creating a new precedent for government intervention in
the economy and social welfare. Before the creation of the New Deal, the federal government
took a minor role in the people's lives. Roosevelt's programs expanded the scope and scale of
federal involvement. This played a significant role in setting the stage for future government
initiatives to promote social and economic well-being. Programs like Social Security and
Labour regulations have positively impacted the people. These programs have offered a
safety net for millions of people. This has been achieved by introducing unemployment
insurance, old-age pensions, and aid to dependent children, significantly creating a
foundation for the modern welfare state. From a precise analysis, the New Deal was a bold
and necessary response to the economic crisis. This is mainly because it provided immediate
relief and long-term reforms that helped stabilize the economy and improve the people's
living standards. This is well seen through the public works programs like the WPA. It is
accurate to assert that these projects provided employment and laid the groundwork for future
economic growth.
In conclusion, the Great Depression and the New Deal were remodelling projects for
the economy and society of America. Although many relief and reforms were brought about
by the New Deal, its benefits were very uneven. While women made new job gains after
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being initially excluded, Black, Hispanic, and Native Americans remained under hard times,
with some helpful supportive measures. The New Deal set a precedent for intervention by the
federal government and laid down social safety nets, including some long-term ones like
Social Security. Although imperfect in rectifying racial and gender disproportions, the New
Deal is a bold and essential response to one of America's most harsh economic crises.
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References
Bellou, A., & Cardia, E. (2021). The Great Depression and the rise of female employment: A
new hypothesis. Explorations in Economic History, p. 80, 101383.
https://clef.uwaterloo.ca/wp-content/uploads/2020/04/CLEF-22_2020-Spring-
Summer-Bellou-Cardia.pdf
Durbin, H. (2012). John Collier (Native Americans).
https://modelbfwproject.wordpress.com/2012/11/05/john-collier-native-americans/
Murphy, M. E. B. (2020). African Americans in the Great Depression and New Deal. In
Oxford Research Encyclopedia of American History.
https://oxfordre.com/americanhistory/display/10.1093/acrefore/9780199329175.001.0
001/acrefore-9780199329175-e-632
