answersLogoWhite

0

In the Great Depression which devastated the economy from 1929-1940. Unemployment peaked at 25 percent, millions of people were homeless, and millions more were forced to leave their homes. The Great Depression and the Second World War led the federal government to turn to fiscal policy as a way of managing the economy and to bring us out of the depression.

User Avatar

Wiki User

12y ago

What else can I help you with?

Continue Learning about General History

What does the federal government hopes to overcome of the past discrimination?

affirmative action


In the guarantees of the Bill of Rights who's action is limited?

The US Constitution is capable of limiting the action of only one group: the federal government.


How did the us government's role in the economy changes as a result of the Great Depression?

As government began to realize signs of an economy downfall, the interference of the Hoover and Roosevelt Administration attempted to help through such methods as government bailouts. This eventually led to a poorer economy, especially from the ideals of the Smoot-Hawley Tariff Act of 1930 came about. With the sharp decrease in trade resulting from the tariff, the economy took a turn for the worse. The economic policies of the federal government did portray a role in the depression, but they were not entirely responsible for the collapse of the economy due to consumers, investors and businessmen. One major impact towards the Great Depression was Government spending. Once tax receipts fell, government then increased tax rates and reduced spending. By doing this, the government was attempting to keep a balanced budget. Economists then advised the federal government to increase spending in order to help employment. The reason for the depression was the fact that the Government was receiving more money then they were spending, causing a lack of money in circulation and reducing inflation to its lowest amount. The Federal Reserve was another impact towards the cause of the Great Depression. The Federal Reserve System tried to help the economy by cutting the money supply by one third. This action was an attempt to get rid of inflation and lower the mass amount of money that was in circulation. Businessmen could not afford new loans and also could not afford their old loans that they had already taken out. Hence, the businessmen stopped investing and purchasing stocks. This then caused businesses to fail due to the lack of money and support from businessmen. The Federal Reserve also caused banks to decrease their willingness to create loans, eventually leading to the decrease in consumption and investment. On the other hand, the Federal Government was not the only cause of the Great Depression. Consumers, investors and businessmen also played a role. Consumers were now not purchasing the overproduction of goods that have started to become mass-produced in assembly lines and factories. Consumers were also saving their money other then spending it to buy certain goods that have been mass-produced. Businessmen stopped investing because of the fact that they could not afford to do so, and also because of the fact that investing opportunities slimmed down. Entrepreneurs failed to bring fourth new products and inventions to invest in. These situations helped towards the creation of the Great Depression, proving that not only the Federal Government caused the decline in the economy. Overall, the Great Depression did not result only from the actions of the Federal Government, but also from consumers not spending money and purchasing items that have been mass-produced, investors not buy stocks in companies because of the lack of stocks or the lack of money, and entrepreneurs not inventing new items to attract the consumer. The Federal Government did have a major cause of the Great Depression due to deflating the economy and causing a lack of money in circulation.


What action taken by the federal government in 1808 shows a strong opposition to slavery?

Congress banned the importation of slaves from Africa.


The difference between the expansion of government in general during the depression years of the 1930s and the expansion of government regulation of car safety after 1966 is that?

car safety had been improving and there was no public demand for action.

Related Questions

What is it called when federal government demands that the states take action or do something?

Government procurement.


Which action by the federal government during the late 1800s is an example of nativism?

These photos are evidence of which action taken by the federal government during the late 1800s


What action did thomas Jefferson take to the lower the national debt?

The action Thomas Jefferson took to lower the national debt was that he streamlined government and increased sales of federal land.


What does the federal government hopes to overcome of the past discrimination?

affirmative action


What favors federal action?

The nationalist position favors federal action. Nationalists advocate for national unity and believe that the government will benefit the most from independence.


Which action best reflects Thomas Jeffersons will to reduce the size and power of the federal government?

He cut federal spending.


What did Washington do when farmers in western Pennsylvania challenged the authority of new federal government by the action known as the whiskey rebellion?

He used the authority of the federal government to put down the rebellion


What type of action did President Hoover think the government needed to take to combat the economic downturn?

Hoover did not believe that the government should lead the way to end the economic depression.


Why was cooperative federalism replace dual federalism?

Dual federalism was replaced by cooperative federalism for many reasons. One such reason is the Great Depression. When the Great Depression occurred, Americans wanted answers and action and in turn the Federal government began to use more of its power to respond and fix things. Cooperative federalism was born out of this.


Two examples of forceful federal government action to organize the nation for war were?

draft and propaganda


In the guarantees of the Bill of Rights who's action is limited?

The US Constitution is capable of limiting the action of only one group: the federal government.


What happens when a government action is claimed uncostitutional?

If it is only CLAIMED that the act was unconstitutional, it will take action, initiated in Federal Court, to decide the issue.