The first thing was a poor credit structure farmer's interest rates on their loans went through the roof.
Explanation:
There were many things that caused the great depression. The first thing was a poor credit structure farmer's interest rates on their loans went through the roof. The farmer's property was already mortgaged to the banks and when it was time to sell their crops the price was too low for them to be able to pay off their debt. Bankers were also investing poorly in Wall Street and giving loans that couldn't be repaid as well as the banking system as a whole not being regulated properly by the Federal Reserve. poor allocation of consumer purchasing power & consumer demand, lack of diversification in the economy, and turn down in American participation in world trade are the major cause of the fret depression. Moreover, the government’s responses by 1932 were not so effective. For the case, the government spent only 1.5% of all government funds on relief and this was a very bad response of the government toward people. For that reason; the government was unable to pull the country out of it
1.1) In an ill-fated move in 1937, President Roosevelt sought to pack the US Supreme Court, which had ruled against many of his programs, with justices who would be more favorable to the New Deal. His" count packing” plan called for adding an additional justice to the Court for every justice over the age of 70. The measure was widely denounced by the public and failed in Congress.
Although the New Deal did not ultimately succeed in lifting the United States out of the Great Depression, the United States' mobilization for World War II revived the economy during the late 1930s and 1940s.
1.2)lowered federal spending to maintain balanced budget.new deal is termed as the series of programs which include regulation enacted in united states, public works projects and financial reforms which was a response of great depression.
The depression was actually ended and prosperity restored, by the sharp reductions in spending, taxes and regulation at the end of World War II, exactly contrary to the analysis of Keynesian so called economists. There are better ways to reduce unemployment, as was shown after the war.
1.3) I pledge myself, to a new deal for the American people.” Though Roosevelt did not have concrete policy proposals in mind at the time, the phrase "New Deal" came to encompass his many programs designed to lift the United States out of the Great Depression.
The New Deal created a broad range of federal government programs that sought to offer economic relief to the suffering, regulate private industry, and grow the economy.
