Great Depression

Many factors played a role in bringing about the great depression; however, the main cause for the Great Depression was the combination of the greatly unequal distribution of wealth throughout the 1920's and 30's, and the stock market crash that took place during the 1930's. The Great Depression was the worst economic decline ever in U.S. history, and one that spread to nearly the entire industrial world. Banks, stores, and factories were closed and left millions of Americans jobless, homeless, and penniless. Many people came to depend on the government or charity to provide them with food. It led to a sharp decrease in world trade as each country tried to protect their own industries and products by raising tariffs on imported goods. The economy was failing due to failure of the free market. The free market was not functioning the way it should have and therefore causing a lot a turmoil.
The Great depression ended through government intervention. Keynes argued passionately that governments should intervene in the economy to stimulate demand through public works scheme - higher spending and borrowing. President Franklin Delano Roosevelt, created the programs known as the New Deal to overcome the effects of the Great Depression. These programs expanded government intervention into new areas of social and economic concerns and created social-assistance measures on the national level.