Effects of the Great Depression and Long-term Legacies of the New Deal

Effects of the Great Depression and Long-term Legacies of the New Deal The great depression marked the most profound and prolonged economic downturn in American history lasting from 1929 to 1941. However, the depression affected different demographic groups at different intensities, with women and African Americans being the most affected. Roosevelt’s New Deal, marked by a series of economic programs to end unemployment and accelerate economic recovery, was a significant milestone in ending the depression. This study evaluates the implications of the Great Depression on women, Africa Americans, Hispanics, and Native Americans. The study will also integrate a discussion on the long-term legacies of the New Deal.

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The most significant impact of the great depression was the increase in unemployment following the 1929 Stock Market Crash (Davidson et al., 2022). However, the depression had contrary effects on women who ironically got into employment amidst the crisis. Women's empowerment gained momentum during the Great Depression, challenging the longstanding social framework of insubordination of females and restriction in a home setting while their male counterparts pursued employment. The number of employed women between 1930 and 1941 increased from 10.5 to 13 million, corresponding to 24% of the labor market (Rotondi, 2019). It is also worth noting that female workers were more insulated from loss of employment drug the period, as they worked in relatively stable industries, including clerical, teaching, and domestic services sectors. This compares to men who dominated the manufacturing and the mining sectors, which suffered significant downturns during the Depression.

Whereas the loss of employment and economic decline affected all Americans, African Americans were the most affected as they were the first group to be subjected to pay cuts and job dismissals. Klein (2018) explains that blacks would be the last to be hired and the first to be fired. Even when hired, African Americans would be subjected to lowly paying jobs, harsh working conditions, and long working hours to compensate for the low labor force as organizations downsized human resources as a cost minimization strategy. The Hispanics also faced similar challenges as African Americans. As the unemployment crisis intensified, so did hostility against Hispanics. Consequently, Mexicans, Puerto Ricans, and Spanish were unproportionally affected by unemployment and depressive symptoms.

The economic downturn during the Great Depression did not spare the Native Americans. Indeed, most natives were in depressing conditions before the stock market crash due

to poor administration, tribal administrations, and political instabilities (Davidson et al., 2022).

The economic downturn relapsed the situation as businesses collapsed, and unemployment increased by more than 50% during the 1930s (Chambers, 2021). By 1932, a quarter of the native population was unemployed, leaving many households destitute. Loss of employment, livelihoods, and life savings manifested in Natives losing their homes, adding to the depressing conditions.

The New Deal introduced and nurtured by President Roosevelt played a substantial role in subsidizing the effects of the economic downturn of the 1930s. The New Deal was grounded on three goals: reforming the financial systems, recovering the economy, and relieving the unemployed and the vulnerable (Davidson et al., 2022). The cumulative efforts to achieve the three goals mark the long-term legacies of the New Deal.

For instance, through Congress, the president introduced the Emergency Banking Act mandating the reopening of competent banks under the supervision of the Treasury. The banking system would provide loans to willing investors to revive the economy (Davidson et al., 2022).

Besides, the Federal Emergency Relief Administration offered direct financial aid to states allowing a work-relief program that drastically reduced the number of unemployed Americans.

This was in addition to combating unbridled competition, contributing to the deflationary pressure due to the declining prices. The latter was achieved through a detailed code of fair competition that focused on stabilizing working hours, wages, and prices. Stabilization of farm input was achieved by incentivizing farmers to produce less, reducing supply in the market.

From an economic perspective, such scarcity would show in an increase in prices hence, reverting g the deflationary pressures. Structural reforms were also at the heart of the New Deal.

The New Deal laid grounds for the Wagner Report and the associated National Labor Relations

Board in 1935, which established a platform for workers to bargain collectively, curtailing low wages and stabilizing prices (Davidson et al., 2022). The Social Security Act was also enacted in 1935, providing finical security for the elderly. Such measures instilled hope for economic stability.

Whereas the Great Depression had devastating effects on the American economy, the New Deal had significant implications that reduced the severity of the crisis. The Neal Deal revived the American Economy by creating employment opportunities, stabilizing the financial system, and giving hope to the poor, elderly, and vulnerable demographics. Among the accomplishments that are still evident in the long term include the establishment of the National Labor Relations Board, The Wagner Act, and the Social Security Act. Even though the New Deal did not end the Greta depressions, it restored Americans' hope for a flourishing economy.

References Chambers, J. (2021). Women in the Workplace in America, 1900-2021. In undefined. Infobase Holdings.

Davidson, J. W., DeLay, B., Heyrman, C. L., Lytle, M., & Stoff, M. (2022). US, a Narrative History: Volume 1. McGraw-Hill Education.

Klein, C. (2018, April 18). Last hired, first fired: How the Great Depression affected African Americans. HISTORY. https://www.history.com/news/last-hired-first-fired-how-thegreat-depression-affected-african-americans Rotondi, J. P. (2019, March 11). Underpaid, but employed: How the Great Depression affected working women. HISTORY. https://www.history.com/news/working-women-greatdepression