The Great Depression: America’s Economic Crisis and Social Transformation in APUSH

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The Great Depression was one of the most significant and transformative events in American history. It was a time of economic crisis and social transformation that profoundly affected American society, politics, and culture. In this article, we will explore the key factors that led to the Great Depression, its impact on American society, and the policies and programs that were implemented to address it.

Causes of the Great Depression

The Great Depression was triggered by a combination of factors, including:

  1. Stock Market Crash: On October 24, 1929, the stock market crashed, signaling the start of the Great Depression. Over the next three years, the stock market lost over 80% of its value, causing widespread panic and financial ruin.
  2. Overproduction: In the years leading up to the Great Depression, American businesses were producing goods at an unprecedented rate. As a result, there was a surplus of goods on the market, which led to a decrease in prices and profits.
  3. Bank Failures: The banking system was unstable, and many banks had invested heavily in the stock market. When the market crashed, many banks were left with huge losses and were unable to repay their depositors.

Impact on American Society

The Great Depression had a profound impact on American society, including:

  1. Unemployment: Unemployment rates soared to over 25%, leaving millions of Americans without jobs or income.
  2. Poverty: Many Americans fell into poverty, unable to afford basic necessities such as food and shelter.
  3. Homelessness: With no income and no place to live, many Americans became homeless and were forced to live in shantytowns known as “Hoovervilles.”
  4. Migration: Many Americans left their homes and migrated to other parts of the country in search of work.
  5. Family Breakdown: The economic stress of the Great Depression led to a breakdown of many families, with divorce rates rising and children being sent to live with relatives or in orphanages.

Policies and Programs to Address the Great Depression

In response to the Great Depression, the government implemented a series of policies and programs to provide relief to those who were affected, including:

  1. New Deal: President Franklin D. Roosevelt’s New Deal was a series of programs and policies aimed at providing relief, recovery, and reform. The New Deal included programs such as the Civilian Conservation Corps, the Works Progress Administration, and the Social Security Act.
  2. Banking Reforms: To address the instability of the banking system, the government implemented a series of banking reforms, including the creation of the Federal Deposit Insurance Corporation (FDIC) and the Glass-Steagall Act.
  3. Agricultural Adjustment Act: The Agricultural Adjustment Act was a program aimed at reducing agricultural production and raising prices for farmers.
  4. National Industrial Recovery Act: The National Industrial Recovery Act was a program aimed at stimulating economic growth by establishing codes of fair competition for businesses.


The Great Depression was a pivotal moment in American history. It was a time of economic crisis and social transformation that shaped the country in profound ways. The policies and programs implemented during the Great Depression laid the foundation for the modern welfare state and established the government’s role in promoting economic growth and stability. The lessons learned from the Great Depression continue to inform our understanding of the economy and the role of government in society today.