Several individuals and institutions attempted to address the Great Depression, each with their own approaches and varying degrees of success.
President Herbert Hoover, initially resistant to government intervention, eventually implemented measures like the Reconstruction Finance Corporation to support banks and businesses. However, his efforts were largely seen as insufficient and contributed to his defeat in the 1932 presidential election.
President Franklin Delano Roosevelt and his "New Deal" programs took a more active role in addressing the crisis. These programs included:
- The Emergency Banking Act: Reopened closed banks and provided financial assistance to struggling institutions.
- The Civilian Conservation Corps (CCC): Provided work relief and conservation projects for unemployed young men.
- The Public Works Administration (PWA): Funded large-scale infrastructure projects to create jobs and stimulate the economy.
- The Social Security Act: Established a system of retirement benefits and unemployment insurance.
While the New Deal did not fully end the Depression, it significantly eased the hardship and laid the groundwork for future social welfare programs.
The Federal Reserve also played a crucial role by lowering interest rates and increasing the money supply. However, their actions were limited by the gold standard, which restricted their ability to expand credit.
International efforts also contributed to the recovery, including the 1933 London Economic Conference and the 1934 Bretton Woods Agreement, which aimed to stabilize international currencies and trade.
Conclusion:
The Great Depression presented a complex economic challenge, and no single individual or institution solely "fixed" it. A combination of government intervention, social programs, and international cooperation ultimately helped to bring the economy back from the brink. While the New Deal's impact is debated, its legacy continues to influence social welfare programs and government intervention in the economy.
