Major Economic Policies During the Great Depression

The Great Depression of the 1930s led to significant economic challenges, prompting the implementation of major economic policies to combat the crisis:

New Deal

President Franklin D. Roosevelt introduced the New Deal, a series of government intervention programs aimed at relief, recovery, and reform. It included fiscal policies to stimulate the economy, public works projects to create jobs, and relief efforts to support those in need.

Bank Reforms

To address the banking crisis, reforms were implemented to restore confidence in the financial system. The Glass-Steagall Act separated commercial and investment banking, while the Federal Deposit Insurance Corporation (FDIC) was established to insure bank deposits and prevent bank runs.

Monetary Policies

The Federal Reserve implemented monetary policies to stabilize the financial system and promote economic recovery. Measures included lowering interest rates, open market operations, and expanding the money supply to combat deflation and increase liquidity.

In conclusion, the major economic policies implemented during the Great Depression, such as the New Deal, bank reforms, and monetary policies, played a crucial role in addressing the economic crisis of the 1930s and laying the foundation for future financial stability.