Causes and Consequences of the Great Depression

Terrence overlooks an abandoned farm during the Great Depression

Terrence and Martina now understand why the Great Depression occurred in the United States. Sparked by the stock market crash of 1929, and the inability of the Federal Reserve to save the national banking system, the U.S. economy failed. The impact of the Great Depression led to a rise in unemployment and homelessness among the American people, and also caused many foreclosures of farms. In addition, the Great Depression prompted political unrest that was not resolved until President Franklin Roosevelt took office and developed the New Deal. Terrence and Martina saw how programs like the WPA, Social Security Act, and FDIC helped Americans get through the Great Depression. The New Deal gave the government a more active role when solving problems that arose in the United States, an ideal that carries through to present times.