The Great Depression

Essay by PaperNerd ContributorCollege, Undergraduate August 2001

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The actions made by the federal government in the period between world war one and world war two effected different groups in the society politically, economically, and socially. The three groups I will be Writing about are the farmers, the unemployed, and bankers.

The farmers were growing a lot of crops during world war one mainly because of the soldiers needing food to fight the war. The farmers mortgaged their land to buy new machinery. Congress temporarily converted the United States into a command economy, which allows the government to interfere with other businesses. The governmental authorities plan and make the basic economic decision for the public. After the war the farmers were overproducing there crops to pay off the for the machinery they purchased, which makes the crops worth less based on the supply and demand method. One of the new deals programs called the Agriculture Adjustment Act (AAA) helped the farmers through there crisis.

The AAA paid the farmers not to grow certain crops, so if fewer crops were grown then the supply would be less and the prices would rise.

Another group of Americans that were effected by the federal government are the unemployed. After the war there were production cuts in the U.S. that led to the closing of production plants, which led to widespread unemployment. Labor unions began a long series of bitter and sometimes violent strikes. Economic resources held back in the war economy were freed when the economy returned back to a market economy. Another way that helped the unemployment problem in 1933 was the Civilian Conservation Corps CCC). There were more than 13 million Americans that were out of work. The CCC provided jobs for young single men from the ages 18-25, and they planted trees, built bridges, worked on flood...