How Did The Great Depression Affect The Economy

Introduction
The Great Depression shook the nation drastically in the 1930s. Many Americans were excited and wanted to be a part of the “economic boom.” During this period, the nation was on the road to success and prosperity due to new inventions and developments in industrialism. Many people saw a chance to join the wealth. They took all of their savings and invested into the stock market; however, they did not benefit from such a financial decision. The stock market crashed and left everyone devastated. The American people began to lose hope, considering all of their financial means were lost. Can you imagine being a poor farmer and losing everything you have worked so hard for? President Franklin D. Roosevelt realized the detrimental state …show more content…
It was used to provide social relief for workers during the Great Depression. Other states decided to follow Wisconsin by helping their own during this economic downturn; however, the unemployment insurance only lasted about sixteen weeks at the state level. This is so, because it lacked organization and the proper funding. There were no limitations, restrictions, or eligibility requirements to maintain order of the funding. Any and everyone was able to receive the benefits, consequently, there was not enough funds left to accommodate everyone, especially those that actually needed the money. The state programs preceded the signing of the Social Security Act and today’s unemployment insurance. The changes did not immediately take effect. It took several months for the various programs to be implemented. First, the Social Security Act organized a national tax for all workers to properly fund the insurance. The federal aspects of unemployment insurance was determined to do things the right way in regards to funding. They learned from the mistakes of the states that attempted a form of unemployment insurance. In July 1937, about 48 states were affiliated with unemployment insurance. The following were later added to the policy: District of Columbia, Puerto Rico, and the Virgin Islands. Unemployment insurance has become a popular phenomenon worldwide. This version was and is still successful due to …show more content…
This is one of the most important programs that will benefit everyone in some way. The second primary goal is to turn around the negative impacts on the national economy. If millions of people are unemployed and cannot find work, then this will greatly affect the overall economy. For example, businesses would be forced to shut down due to lack of consumers. The federal law is used as a form of enforcement. It requires all state governments to enforce a tax on all employers of at least 0.8 percent of their employees. This provides order and keeps each state properly funded so that the overall goals can be