A worldwide depression struck all market economies at the end of the 1920s. Although this was mild for some countries, it hit others hard, especially the United States. At the depressionâ€™s lowest point in 1933, 25% of all employees were unemployed and 37% of all non-farm workers were completely out of work. Some people starved, many lost farms and homes.
Recovery began 1933. Census figures of farm supply purchasing skyrocket from $75.9 million in 1924 to estimated $250 million in 1934. Rooseveltâ€™s â€œNew Dealâ€ is said to have strongly helped the acceleration of recovery. As recovery began, many Americans began to regain hope only for it to be shot back down again with the decline of a recovery for most of the 1934 through 1935. Finally, the more dramatic recovery began towards the end of 1935 all the way to 1937 when the unemployment rate fell from 21.7% to 14.1%. In 1937, another bump in the road to recovery was encountered and progress came to a stand-still. Rooseveltâ€™s weakening political power lead to another year long recession. The long contraction and painfully slow recovery led many Americans to accept and even call for a vastly expanded role of federal government.
As a result President Roosevelt created Social Security and Unemployment Compensation to try to help those too old to support themselves and to help those who could not find work in the struggling economy. Two main pieces of the New Deal were put into act. The Agricultural Adjustment Act (AAA) and the National Recovery Administration (NRA) were both passed to reduce production and raise wages and prices. Also the Wagner Act was created to dramatically change labor negotiations between employers and employees by promoting unions and acting as an arbiter to ensure â€œfairâ€ labor contract negations.
The Supreme Court later ruled both the NRA and AAA both unconstitutional due to the negative effects they were having on business. After the chains put on businesses by theseâ€¦
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