New Deal
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The Great Depression of the United States occurred from 1929 through the 1930s. The Depression was caused by speculation and over-extension in the stock market, deteriorating farm, coal, automobile, railroad, construction, and textile businesses, weak foreign trade, and inadequate consumption. The Depression caused the GNP to fall from $104.6 billion in 1929 to $56.1 billion in 1933. By 1932, 22 percent of the banks in the US closed; by 1933 the unemployment rate was 25 percent of the non-farm laborers, and national income had fallen 54 percent. Franklin D. Roosevelt, elected President in 1932 proposed the New Deal as a solution to the Great Depression. The New Deal can be divided into two periods, the First New Deal of 1933 and 1934 and the Second New Deal of 1935 to 1938. Although the New Deal improved aspects of society, predominantly with the Social Security Act of 1935, overall it did a poor job in ameliorating the causes and effects of the Great Depression because it was unsuccessful in helping the economy to recover in the 1930s...