Many factors led to the great depression. Among them was the combination of the numerous uneven distribution of wealth and the huge speculations of the stock market.
In the 1920s, there was an uneven distribution of wealth between the rich and the middle-class, as well as between agriculture and industry. This led to the emergence of an unstable economy.
The federal government also contributed to the emergence of depression. The government privileged businesses hence benefiting rich people who could be able to invest in the business. Roosevelt decided to come up with a new deal where the government was to come up with measures to reduce unemployment in the country. However, this was not effective in overcoming the depression. This led to the public not having trust in the government’s capacity in sustaining the economy. It led to them looking for other methods to cater to their problems. These included the establishment of credit sales as well as luxury spending. People could buy all they required on credit and pay for the goods later.
The idea was received well by most Americans, and by the end of the 1920s, people could buy cars and radios at credit. The economy also relied on luxury spending. This meant that the economy was at the mercy of the rich.
Some of the economic and social programs that emerged from the legislation of the new deal include the public works programs such as the Hoover Dam and Tennessee Valley Authority that is responsible for controlling floods.