great depression essay

The Great Depression

"Regarding the Great Depression, … we did it. We’re very sorry. … We won’t do it again." —Ben Bernanke, November 8, 2002, in a speech given at "A Conference to Honor Milton Friedman … On the Occasion of His 90th Birthday."

In 2002, Ben Bernanke , then a member of the Federal Reserve Board of Governors, acknowledged publicly what economists have long believed. The Federal Reserve’s mistakes contributed to the "worst economic disaster in American history" (Bernanke 2002).

Bernanke, like other economic historians, characterized the Great Depression as a disaster because of its length, depth, and consequences. The Depression lasted a decade, beginning in 1929 and ending during World War II. Industrial production plummeted. Unemployment soared. Families suffered. Marriage rates fell. The contraction began in the United States and spread around the globe. The Depression was the longest and deepest downturn in the history of the United States and the modern industrial economy.

The Great Depression began in August 1929, when the economic expansion of the Roaring Twenties came to an end. A series of financial crises punctuated the contraction. These crises included a stock market crash in 1929 , a series of regional banking panics in 1930 and 1931 , and a series of national and international financial crises from 1931 through 1933 . The downturn hit bottom in March 1933, when the commercial banking system collapsed and President Roosevelt declared a national banking holiday . 1    Sweeping reforms of the financial system accompanied the economic recovery, which was interrupted by a double-dip recession in 1937 . Return to full output and employment occurred during the Second World War.

To understand Bernanke’s statement, one needs to know what he meant by "we," "did it," and "won’t do it again."

By “we,” Bernanke meant the leaders of the Federal Reserve System. At the start of the Depression, the Federal Reserve’s decision-making structure was decentralized and often ineffective. Each district had a governor who set policies for his district, although some decisions required approval of the Federal Reserve Board in Washington, DC. The Board lacked the authority and tools to act on its own and struggled to coordinate policies across districts. The governors and the Board understood the need for coordination; frequently corresponded concerning important issues; and established procedures and programs, such as the Open Market Investment Committee, to institutionalize cooperation. When these efforts yielded consensus, monetary policy could be swift and effective. But when the governors disagreed, districts could and sometimes did pursue independent and occasionally contradictory courses of action.

The governors disagreed on many issues, because at the time and for decades thereafter, experts disagreed about the best course of action and even about the correct conceptual framework for determining optimal policy. Information about the economy became available with long and variable lags. Experts within the Federal Reserve, in the business community, and among policymakers in Washington, DC, had different perceptions of events and advocated different solutions to problems. Researchers debated these issues for decades. Consensus emerged gradually. The views in this essay reflect conclusions expressed in the writings of three recent chairmen, Paul Volcke r, Alan Greenspan , and Ben Bernanke .

By "did it," Bernanke meant that the leaders of the Federal Reserve implemented policies that they thought were in the public interest. Unintentionally, some of their decisions hurt the economy. Other policies that would have helped were not adopted.

An example of the former is the Fed’s decision to raise interest rates in 1928 and 1929. The Fed did this in an attempt to limit speculation in securities markets. This action slowed economic activity in the United States. Because the international gold standard linked interest rates and monetary policies among participating nations, the Fed’s actions triggered recessions in nations around the globe. The Fed repeated this mistake when responding to the international financial crisis in the fall of 1931. This website explores these issues in greater depth in our entries on the stock market crash of 1929 and the financial crises of 1931 through 1933 .

An example of the latter is the Fed’s failure to act as a lender of last resort during the banking panics that began in the fall of 1930 and ended with the banking holiday in the winter of 1933. This website explores this issue in essays on the banking panics of 1930 to 1931 , the banking acts of 1932 , and the banking holiday of 1933 .

One reason that Congress created the Federal Reserve, of course, was to act as a lender of last resort. Why did the Federal Reserve fail in this fundamental task? The Federal Reserve’s leaders disagreed about the best response to banking crises. Some governors subscribed to a doctrine similar to Bagehot’s dictum, which says that during financial panics, central banks should loan funds to solvent financial institutions beset by runs. Other governors subscribed to a doctrine known as real bills. This doctrine indicated that central banks should supply more funds to commercial banks during economic expansions, when individuals and firms demanded additional credit to finance production and commerce, and less during economic contractions, when demand for credit contracted. The real bills doctrine did not definitively describe what to do during banking panics, but many of its adherents considered panics to be symptoms of contractions, when central bank lending should contract. A few governors subscribed to an extreme version of the real bills doctrine labeled “liquidationist.” This doctrine indicated that during financial panics, central banks should stand aside so that troubled financial institutions would fail. This pruning of weak institutions would accelerate the evolution of a healthier economic system. Herbert Hoover’s secretary of treasury, Andrew Mellon, who served on the Federal Reserve Board, advocated this approach. These intellectual tensions and the Federal Reserve’s ineffective decision-making structure made it difficult, and at times impossible, for the Fed’s leaders to take effective action.

Among leaders of the Federal Reserve, differences of opinion also existed about whether to help and how much assistance to extend to financial institutions that did not belong to the Federal Reserve. Some leaders thought aid should only be extended to commercial banks that were members of the Federal Reserve System. Others thought member banks should receive assistance substantial enough to enable them to help their customers, including financial institutions that did not belong to the Federal Reserve, but the advisability and legality of this pass-through assistance was the subject of debate. Only a handful of leaders thought the Federal Reserve (or federal government) should directly aid commercial banks (or other financial institutions) that did not belong to the Federal Reserve. One advocate of widespread direct assistance was  Eugene Meyer , governor of the Federal Reserve Board, who was instrumental in the creation of the  Reconstruction Finance Corporation .

These differences of opinion contributed to the Federal Reserve’s most serious sin of omission: failure to stem the decline in the supply of money. From the fall of 1930 through the winter of 1933, the money supply fell by nearly 30 percent. The declining supply of funds reduced average prices by an equivalent amount. This deflation increased debt burdens; distorted economic decision-making; reduced consumption; increased unemployment; and forced banks, firms, and individuals into bankruptcy. The deflation stemmed from the collapse of the banking system, as explained in the essay on the  banking panics of 1930 and 1931 .

The Federal Reserve could have prevented deflation by preventing the collapse of the banking system or by counteracting the collapse with an expansion of the monetary base, but it failed to do so for several reasons. The economic collapse was unforeseen and unprecedented. Decision makers lacked effective mechanisms for determining what went wrong and lacked the authority to take actions sufficient to cure the economy. Some decision makers misinterpreted signals about the state of the economy, such as the nominal interest rate, because of their adherence to the real bills philosophy. Others deemed defending the gold standard by raising interests and reducing the supply of money and credit to be better for the economy than aiding ailing banks with the opposite actions.

On several occasions, the Federal Reserve did implement policies that modern monetary scholars believe could have stemmed the contraction. In the spring of 1931, the Federal Reserve began to expand the monetary base, but the expansion was insufficient to offset the deflationary effects of the banking crises. In the spring of 1932, after Congress provided the Federal Reserve with the necessary authority, the Federal Reserve expanded the monetary base aggressively. The policy appeared effective initially, but after a few months the Federal Reserve changed course. A series of political and international shocks hit the economy, and the contraction resumed. Overall, the Fed’s efforts to end the deflation and resuscitate the financial system, while well intentioned and based on the best available information, appear to have been too little and too late.

The flaws in the Federal Reserve’s structure became apparent during the initial years of the Great Depression. Congress responded by reforming the Federal Reserve and the entire financial system. Under the Hoover administration, congressional reforms culminated in the Reconstruction Finance Corporation Act and the Banking Act of 1932 . Under the Roosevelt administration, reforms culminated in the  Emergency Banking Act of 1933 , the  Banking Act of 1933 (commonly called Glass-Steagall) , the  Gold Reserve Act of 1934 , and the  Banking Act of 1935 . This legislation shifted some of the Federal Reserve’s responsibilities to the Treasury Department and to new federal agencies such as the Reconstruction Finance Corporation and Federal Deposit Insurance Corporation. These agencies dominated monetary and banking policy until the 1950s.

The reforms of the 1930s, ’40s, and ’50s turned the Federal Reserve into a modern central bank. The creation of the modern intellectual framework underlying economic policy took longer and continues today. The Fed’s combination of a well-designed central bank and an effective conceptual framework enabled Bernanke to state confidently that "we won’t do it again."

• 1  These business cycle dates come from the National Bureau of Economic Research . Additional materials on the Federal Reserve can be found at the website of the Federal Reserve Bank of St. Louis.

Bibliography

Bernanke, Ben. Essays on the Great Depression . Princeton: Princeton University Press, 2000.

Bernanke, Ben, " On Milton Friedman's Ninetieth Birthday ," Remarks by Governor Ben S. Bernanke at the Conference to Honor Milton Friedman, University of Chicago, Chicago, IL, November 8, 2002.

Chandler, Lester V. American Monetary Policy, 1928 to 1941 . New York: Harper and Row, 1971.

Chandler, Lester V. American’s Greatest Depression, 1929-1941 . New York: Harper Collins, 1970.

Eichengreen, Barry. " The Origins and Nature of the Great Slump Revisited ."  Economic History Review 45, no. 2 (May 1992): 213–239. 

Friedman, Milton and Anna Schwartz. A Monetary History of the United States: 1867-1960 . Princeton: Princeton University Press, 1963.

Kindleberger, Charles P. The World in Depression, 1929-1939 : Revised and Enlarged Edition. Berkeley: University of California Press, 1986.

Meltzer, Allan. A History of the Federal Reserve: Volume 1, 1913 to 1951 . Chicago: University of Chicago Press, 2003.

Romer, Christina D. " The Nation in Depression ." Journal of Economic Perspectives 7, no. 2 (1993): 19-39.

Temin, Peter. Lessons from the Great Depression (Lionel Robbins Lectures) . Cambridge: MIT Press, 1989.

Written as of November 22, 2013. See disclaimer  and update policy .

Essays in this Time Period

• Bank Holiday of 1933
• Banking Act of 1933 (Glass-Steagall)
• Banking Act of 1935
• Banking Acts of 1932
• Banking Panics of 1930-31
• Banking Panics of 1931-33
• Stock Market Crash of 1929
• Emergency Banking Act of 1933
• Gold Reserve Act of 1934
• Recession of 1937–38
• Roosevelt's Gold Program

Federal Reserve History

The Great Depression - List of Essay Samples And Topic Ideas

The Great Depression was a severe worldwide economic depression that took place during the 1930s, profoundly affecting many countries. Essays on the Great Depression could explore its causes, such as the stock market crash of 1929, its impact on people’s lives, and the political and social repercussions. Moreover, discussions might extend to the measures taken to alleviate the depression and the lessons learned in economic policy and financial regulation, comparing it to other economic downturns. We have collected a large number of free essay examples about The Great Depression you can find at PapersOwl Website. You can use our samples for inspiration to write your own essay, research paper, or just to explore a new topic for yourself.

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How To Write an Essay About The Great Depression

Understanding the great depression.

Before starting an essay on the Great Depression, it is essential to have a comprehensive understanding of this significant historical event. The Great Depression was a severe worldwide economic downturn that took place during the 1930s. It began after the stock market crash of October 1929, which sent Wall Street into panic and wiped out millions of investors. The depression had devastating effects in countries both rich and poor. Begin your essay by outlining the key events that led to the Great Depression, including the stock market crash, bank failures, and reduction in purchasing across the board. Additionally, discuss the global impact of the depression, as it was not limited to the United States but affected economies worldwide.

Developing a Thesis Statement

A strong essay on the Great Depression should be centered around a clear, concise thesis statement. This statement should present a specific viewpoint or argument about the Great Depression. For instance, you might analyze the causes of the Great Depression, its impact on a particular sector of society, or the effectiveness of the responses by governments. Your thesis will guide the direction of your essay and ensure a structured and coherent analysis.

Gathering Historical Evidence

To support your thesis, gather historical evidence from credible sources. This may include economic data, personal accounts, government policies, and historical analyses. For example, if discussing the impact on agriculture, you might use statistics about farm foreclosures or personal narratives from farmers. Analyze this evidence critically, considering the context and the source's reliability.

Analyzing the Impact of The Great Depression

Dedicate a section of your essay to analyzing the impact of the Great Depression. Discuss the widespread unemployment, the collapse of financial institutions, and the human toll it took on society. Consider the long-term effects, such as changes in government policy, shifts in economic theory, and how it shaped subsequent generations' attitudes toward money and banking.

Concluding the Essay

Conclude your essay by summarizing the main points of your discussion and restating your thesis in light of the evidence presented. Your conclusion should tie together your analysis and emphasize the significance of understanding the Great Depression in the context of both historical and modern economic understanding. You might also want to reflect on the lessons learned from the Great Depression and their relevance to contemporary economic challenges.

Reviewing and Refining Your Essay

After completing your essay, take the time to review and refine it. Ensure that your arguments are clearly articulated and supported by evidence. Check for grammatical accuracy and ensure that your essay flows logically from one point to the next. Consider seeking feedback from peers, teachers, or historians to further refine your essay. A well-written essay on the Great Depression will not only demonstrate your understanding of this pivotal period in history but also your ability to engage critically with economic and historical narratives.

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Home — Essay Samples — History — Great Depression — The Great Depression: Causes, Effects, and Lessons Learned

The Great Depression: Causes, Effects, and Lessons Learned

• Categories: Great Depression

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Published: Jan 29, 2024

Words: 763 | Pages: 2 | 4 min read

Table of contents

Causes of the great depression, stock market crash of 1929, overproduction and underconsumption, bank failures and the collapse of the banking system, effects of the great depression, economic effects, social effects, political effects, references:.

• Worster, D. (1979) Dust Bowl: The Southern Plains in the 1930s
• Klein, M. (2003). The Defining Moment: The Great Depression and the American Economy in the Twentieth Century.
• Soule, G. (1996). The Greatest American Bank Robbery: The Collapse of the Savings and Loan Industry.

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How the Great Depression Changed Americans Essay

Introduction, works cited.

America’s Great Depression took place between 1929 and 1939 and was part of a worldwide economic recession in which the world experienced a reduction in business activity, and subsequent skyrocketing rates of unemployment. Notable about the event is that, it was not the result of some uncontrollable natural disaster but rather a result of misguided economic policies, whose authors only intended good but instead reaped disaster. During the depression, the population experienced intense pain and extensive misery and the event has been blamed for leading to calamities such as World War II and the rising to power of Adolf Hitler (Hall & Ferguson 2).

According to economists, a stiff monetary policy initiated by the Federal Reserve at the beginning of 1928 led to the initial recession in United States of America. Stock prices were taking an upward trend and Federal Reserve officials intervened with a string of actions designed at tightening credit conditions for member banks (Hall & Ferguson 64). In October 929, the very foundations of a presumably vibrant American society were vigorously shaken when the once strong stock market came crashing down and for nearly 10 years, the once booming industrial expansion that followed the Civil War almost came to a standstill (Jillson 406).

During the 1920s, American farmers had incurred heavy debts through farm mechanization and expanded production, resulting in mountainous surpluses that could not be marketed. As business got lower, marketing of livestock and farm produce got more difficult. A government intervention to buy surpluses from the farmers did not achieve positive results and many land owners lost their properties to unpaid debts. When the depression came, farmers were worst hit and the rural population slowly started dwindling as people moved to the cities in search of a better life. Suffering had changed people’s attitude towards work and they could now do whatever kind of work that would bring daily bread (Kennedy 17, 85).

Over a decade, Americans experienced an era of joblessness that was so harsh that, for some time, the population was exposed to abject poverty; the worst being the immigrants, blacks and Mexican-Americans. By the beginning of 1932, close to 20 per cent of the American labor force had lost their jobs, a situation that got worse in large cities like Detroit and Chicago where joblessness had hit the 50 per cent mark (Kennedy 85-8, 164). Most of the major industries like General Motors were forced to lay off roughly half of their labor force, while those lucky to remain had to be content with shorter working hours and smaller paychecks. America was for the first time experiencing unemployment of such high magnitude (Kennedy 166).

While farm produce rotted in the rural farms, the population in such big cities as New York, Seattle, Chicago and others scavenged for food in garbage cans (Kennedy 165). America’s outlook to life changed as more Americans had to rely on the detested relief food and used clothing. Millions of Americans fell victim to malnutrition and to the common American, such kind of life was degrading. Charities and government institutions could no longer cope with the responsibility of providing relief to the needy. Even the banks that served the immigrants were the first to close down within the first rounds of panic (Kennedy 86-88). As a result of the untold suffering, some immigrants started losing hope in this presumed land of plenty and chose to return to their countries of origin. America was slowly losing its citizens and losing precious labor force as well (Kennedy 164).

Due to un-employment, Americans lost their homes to failed mortgages while others were kicked out of apartments for default of rent, resulting in the creation of shanty settlements especially in the major towns. Families broke as unproductive fathers lost respect as family heads due to joblessness and left home. Children also left to ease the suffering in the homes while women, who previously stayed at home entered the labor force, and took up the role of breadwinners (Kennedy 164-166).

Declining economic outputs resulting from the depression led to a public outcry for help that necessitated government intervention in what has popularly been referred to as the New Deal. Under this New Deal, the government initiated a variety of intervention programs, making the government an important participant in the nation’s economy. The New Deal has also been attributed to creation of more socialism and free enterprise while putting a check to capitalism. The Federal government got more involved in such areas as social security, welfare, electricity generation and securities regulation among others. This government was now growing bigger in size (Hall & Ferguson 3). There was also a change in the dominant political party as most Americans lost confidence in the government and Republicans lost to the Democrats. New laws came into being that increased the power of government and a welfare state came into being with the creation of welfare associations and unions to look into the unemployment issue. Such associations as Works Progress Administration (WPA) and Public Works Administration (PWA) were formed during this time (Jillson 327, 382).

The depression in America cannot pass off as just another crisis but rather as an episode that served to reveal the extensive structural inequities that existed within the American Society. Most Americans were now more aware that any economic policy was subject to failure and realized the need for government intervention in the management of the economy (Kennedy 168).

Hall, Thomas E, and Ferguson J. David. The Great Depression: An International Disaster of Perverse Economic Policies . Michigan: University of Michigan Press, 1998.

Jillson, Cal. American Government: Political Change and Institutional Development. London: Routledge, 2007.

Kennedy, David M. Freedom from Fear. The American People in Depression and War 1929 – 1945. New York: Oxford University Press US, 2001.

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Great Depression History

By: History.com Editors

Updated: October 20, 2023 | Original: October 29, 2009

The Great Depression was the worst economic crisis in modern history, lasting from 1929 until the beginning of World War II in 1939. The causes of the Great Depression included slowing consumer demand, mounting consumer debt, decreased industrial production and the rapid and reckless expansion of the U.S. stock market. When the stock market crashed in October 1929, it triggered a crisis in the international economy, which was linked via the gold standard. A rash of bank failures followed in 1930, and as the Dust Bowl increased the number of farm foreclosures, unemployment topped 20 percent by 1933. Presidents Herbert Hoover and Franklin D. Roosevelt tried to stimulate the economy with a range of incentives including Roosevelt’s New Deal programs, but ultimately it took the manufacturing production increases of World War II to end the Great Depression.

What Caused the Great Depression?

Throughout the 1920s, the U.S. economy expanded rapidly, and the nation’s total wealth more than doubled between 1920 and 1929, a period dubbed “ the Roaring Twenties .”

The stock market, centered at the New York Stock Exchange on Wall Street in New York City , was the scene of reckless speculation, where everyone from millionaire tycoons to cooks and janitors poured their savings into stocks. As a result, the stock market underwent rapid expansion, reaching its peak in August 1929.

By then, production had already declined and unemployment had risen, leaving stock prices much higher than their actual value. Additionally, wages at that time were low, consumer debt was proliferating, the agricultural sector of the economy was struggling due to drought and falling food prices and banks had an excess of large loans that could not be liquidated.

The American economy entered a mild recession during the summer of 1929, as consumer spending slowed and unsold goods began to pile up, which in turn slowed factory production. Nonetheless, stock prices continued to rise, and by the fall of that year had reached stratospheric levels that could not be justified by expected future earnings.

Stock Market Crash of 1929

On October 24, 1929, as nervous investors began selling overpriced shares en masse, the stock market crash that some had feared happened at last. A record 12.9 million shares were traded that day, known as “Black Thursday.”

Five days later, on October 29, or “Black Tuesday,” some 16 million shares were traded after another wave of panic swept Wall Street. Millions of shares ended up worthless, and those investors who had bought stocks “on margin” (with borrowed money) were wiped out completely.

As consumer confidence vanished in the wake of the stock market crash, the downturn in spending and investment led factories and other businesses to slow down production and begin firing their workers. For those who were lucky enough to remain employed, wages fell and buying power decreased.

Many Americans forced to buy on credit fell into debt, and the number of foreclosures and repossessions climbed steadily. The global adherence to the gold standard , which joined countries around the world in fixed currency exchange, helped spread economic woes from the United States throughout the world, especially in Europe.

Bank Runs and the Hoover Administration

Despite assurances from President Herbert Hoover and other leaders that the crisis would run its course, matters continued to get worse over the next three years. By 1930, 4 million Americans looking for work could not find it; that number had risen to 6 million in 1931.

Meanwhile, the country’s industrial production had dropped by half. Bread lines, soup kitchens and rising numbers of homeless people became more and more common in America’s towns and cities. Farmers couldn’t afford to harvest their crops and were forced to leave them rotting in the fields while people elsewhere starved. In 1930, severe droughts in the Southern Plains brought high winds and dust from Texas to Nebraska, killing people, livestock and crops. The “ Dust Bowl ” inspired a mass migration of people from farmland to cities in search of work.

In the fall of 1930, the first of four waves of banking panics began, as large numbers of investors lost confidence in the solvency of their banks and demanded deposits in cash, forcing banks to liquidate loans in order to supplement their insufficient cash reserves on hand.

Bank runs swept the United States again in the spring and fall of 1931 and the fall of 1932, and by early 1933 thousands of banks had closed their doors.

In the face of this dire situation, Hoover’s administration tried supporting failing banks and other institutions with government loans; the idea was that the banks in turn would loan to businesses, which would be able to hire back their employees.

FDR and the Great Depression

Hoover, a Republican who had formerly served as U.S. secretary of commerce, believed that government should not directly intervene in the economy and that it did not have the responsibility to create jobs or provide economic relief for its citizens.

In 1932, however, with the country mired in the depths of the Great Depression and some 15 million people unemployed, Democrat Franklin D. Roosevelt won an overwhelming victory in the presidential election.

By Inauguration Day (March 4, 1933), every U.S. state had ordered all remaining banks to close at the end of the fourth wave of banking panics, and the U.S. Treasury didn’t have enough cash to pay all government workers. Nonetheless, FDR (as he was known) projected a calm energy and optimism, famously declaring "the only thing we have to fear is fear itself.”

Roosevelt took immediate action to address the country’s economic woes, first announcing a four-day “bank holiday” during which all banks would close so that Congress could pass reform legislation and reopen those banks determined to be sound. He also began addressing the public directly over the radio in a series of talks, and these so-called “ fireside chats ” went a long way toward restoring public confidence.

During Roosevelt’s first 100 days in office, his administration passed legislation that aimed to stabilize industrial and agricultural production, create jobs and stimulate recovery.

In addition, Roosevelt sought to reform the financial system, creating the Federal Deposit Insurance Corporation ( FDIC ) to protect depositors’ accounts and the Securities and Exchange Commission (SEC) to regulate the stock market and prevent abuses of the kind that led to the 1929 crash.

The New Deal: A Road to Recovery

Among the programs and institutions of the New Deal that aided in recovery from the Great Depression was the Tennessee Valley Authority (TVA) , which built dams and hydroelectric projects to control flooding and provide electric power to the impoverished Tennessee Valley region, and the Works Progress Administration (WPA) , a permanent jobs program that employed 8.5 million people from 1935 to 1943.

When the Great Depression began, the United States was the only industrialized country in the world without some form of unemployment insurance or social security. In 1935, Congress passed the Social Security Act , which for the first time provided Americans with unemployment, disability and pensions for old age.

After showing early signs of recovery beginning in the spring of 1933, the economy continued to improve throughout the next three years, during which real GDP (adjusted for inflation) grew at an average rate of 9 percent per year.

A sharp recession hit in 1937, caused in part by the Federal Reserve’s decision to increase its requirements for money in reserve. Though the economy began improving again in 1938, this second severe contraction reversed many of the gains in production and employment and prolonged the effects of the Great Depression through the end of the decade.

Depression-era hardships fueled the rise of extremist political movements in various European countries, most notably that of Adolf Hitler’s Nazi regime in Germany. German aggression led war to break out in Europe in 1939, and the WPA turned its attention to strengthening the military infrastructure of the United States, even as the country maintained its neutrality.

African Americans in the Great Depression

One-fifth of all Americans receiving federal relief during the Great Depression were Black, most in the rural South. But farm and domestic work, two major sectors in which Black workers were employed, were not included in the 1935 Social Security Act, meaning there was no safety net in times of uncertainty. Rather than fire domestic help, private employers could simply pay them less without legal repercussions. And those relief programs for which African Americans were eligible on paper were rife with discrimination in practice since all relief programs were administered locally.

5 Causes of the Great Depression

By 1929, a perfect storm of unlucky factors led to the start of the worst economic downturn in U.S. history.

How Bank Failures Contributed to the Great Depression

Were financial institutions victims—or culprits?

9 New Deal Infrastructure Projects That Changed America

The Hoover Dam, LaGuardia Airport and the Bay Bridge were all part of FDR's New Deal investment.

Despite these obstacles, Roosevelt’s “Black Cabinet,” led by Mary McLeod Bethune , ensured nearly every New Deal agency had a Black advisor. The number of African Americans working in government tripled .

Women in the Great Depression

There was one group of Americans who actually gained jobs during the Great Depression: Women. From 1930 to 1940, the number of employed women in the United States rose 24 percent from 10.5 million to 13 million Though they’d been steadily entering the workforce for decades, the financial pressures of the Great Depression drove women to seek employment in ever greater numbers as male breadwinners lost their jobs. The 22 percent decline in marriage rates between 1929 and 1939 also created an increase in single women in search of employment.

Women during the Great Depression had a strong advocate in First Lady Eleanor Roosevelt , who lobbied her husband for more women in office—like Secretary of Labor Frances Perkins , the first woman to ever hold a cabinet position.

Jobs available to women paid less but were more stable during the banking crisis: nursing, teaching and domestic work. They were supplanted by an increase in secretarial roles in FDR’s rapidly-expanding government. But there was a catch: over 25 percent of the National Recovery Administration’s wage codes set lower wages for women, and jobs created under the WPA confined women to fields like sewing and nursing that paid less than roles reserved for men.

Married women faced an additional hurdle: By 1940, 26 states had placed restrictions known as marriage bars on their employment, as working wives were perceived as taking away jobs from able-bodied men—even if, in practice, they were occupying jobs men would not want and doing them for far less pay.

Great Depression Ends and World War II Begins

With Roosevelt’s decision to support Britain and France in the struggle against Germany and the other Axis Powers, defense manufacturing geared up, producing more and more private-sector jobs.

The Japanese attack on Pearl Harbor in December 1941 led to America’s entry into World War II, and the nation’s factories went back into full production mode.

This expanding industrial production, as well as widespread conscription beginning in 1942, reduced the unemployment rate to below its pre-Depression level. The Great Depression had ended at last, and the United States turned its attention to the global conflict of World War II.

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