History of the USA · The modern United States. The idea in plain words, the rules to remember, the mistake to avoid and a worked example, written and checked by Mega Lecture.
The 1920s were years of boom. Mass production, led by Ford's cars, cheap credit and Republican governments that left business alone (laissez-faire) pushed output and share prices up. But farmers were in trouble, wealth was unevenly shared, and many shares were bought with borrowed money.
The stock market crashed in October 1929. Banks failed, demand collapsed and by 1933 about a quarter of workers had no job. This was the Great Depression.
Franklin Roosevelt, elected in 1932, answered with the New Deal: relief for the unemployed, recovery for the economy and reform of the system. It greatly enlarged the part the federal government plays in American life. The Social Security Act (1935) was its most lasting law.
The 1929 crash was the trigger of the Depression, not its only cause. Examiners expect the deeper weaknesses as well: overproduction, unequal incomes, weak banks and too much credit.
Answer: CCC is relief, AAA is recovery, SEC is reform.
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