Consequences of the Great Depression & New Deal

Each bank was permitted to reopen only after the government inspected its records and found it was financially sound. This gave banks an opportunity to avoid "runs". 

• Helpful because it lets the government monitor the banking industry and determine whether to shut them down. 

It increased employment by creating new public works projects.

• Helpful because it provides jobs to people in need while also benefiting the community.

It was created to insure deposits in banks so that people would no longer have to worry about losing their savings in the event of a bank failure.

• Unhelpful because banks can now fail and only receive government insurance for  the lost money, which results in less concern for the money.

Single most important law passed by the New Deal. Americans continue to be protected by Social Security today, which now makes up a large part of the federal budget.

• Helpful because  it keeps people from suffering excessively from illness, unemployment, or a death in the family.

It was a new federal agency created to oversee the operations of the stock market, preventing fraud and guarding against the conditions that had led to the stock market crash.

• Helpful because  keeps the market from collapsing as it did in the past.

Also known as the "Wagner Act" which gave workers the right to form unions, to bargain collectively, and to submit their grievances to the National Labor Relations Board.

• Helpful because it granted employees greater rights and a voice.

The government projects that gave people meaningful work. This preserved their sense of dignity and also improved the nation's economic foundations by providing needed roads and public buildings.

• Helpful because it strengthened the economic base and provided work for the unemployed.

This act set maximum working hours and a minimum wage, while it prohibited child labor in factories.

• Helpful because employees are no longer overworked on low salaries.

It gave emergency loans at low interest rates to homeowners facing foreclosure.

• Helpful because it allowed people to purchase their homes without worrying about the heavy debt they were carrying.

It built and maintained 21 large dams along the Tennessee River. These dams controlled floods, produced hydroelectricity, and manufactured fertilizers.

• Helpful because it promoted economic growth, supplied power, managed flooding, and raised living standards generally.

It was designed to help industry recover from the Depression by increasing  prices and reducing wasteful competition.

• Helpful because it assisted  businesses to recover while providing fair working conditions for their employees.

It promoted the recovery of farmers. It also created artificial scarcity that would encourage crop prices to rise. 

• Unhelpful because it  later ruled to be unconstitutional.