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Eric Foner: Causes Of The Great Depression

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Causes of the Great Depression
The causes of the Great Depression according to Eric Foner are numerous. One of them that Foner mentions in his book titled, Give me liberty!: an American history was the 1929 incidence of the stock exchange and unequal distribution of wealth . Foner affirms that the stock market crash caused stockholders to suffer enormous losses of more than forty thousand billion dollars. Although the stock exchange began to recoup but the consequences overwhelmed the recuperation process and proved worthless. Secondly, the closing of banks was another factor that contributed to the loss of reserve funds. Failures by the financial institutions caused more than nine thousand bank to fizzle amid the 1930s. The problem of failing …show more content…
Foner mentions factors such as stock market, overproduction, foreclosing of banks, inappropriate policies, and dust bowl among others . These factors made life become unbearable for most American farmers, investors and residents.
How did the emphasis of the second New Deal differ from the first New Deal?
The focus of the second New Deal was different from the first new deal in various aspects. One of them is that the second “New Deal” was that it was more liberal compared to the first “New Deal.” In fact, during the first “New Deal” that was enacted after the first 100 days of President Franklin D. Roosevelt’s administration in 1933 to help spur economic recovery attempted to please everyone. It did so through national planning and setting strategies aimed at providing assistance or relief to the jobless. Another difference is that the first “New Deal” initiated a program coined as Agriculture Adjustment administration (AAA) and National Recovery Administration (NRA) that were considered the best approaches to create a balanced recovery to the agricultural and industrial sectors. Additionally, the Federal Emergency Relief Administration (FERA) was also initiated to help the needy

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