The Great Depression in the 1930's



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Social issues, such as poverty and unemployment, were widespread during the Great Depression. A boy and girl in a protest are shown here because their parents have lost their jobs. Many families could not even sustain themselves.






Although recessions are normal parts of the free-market business cycle, but the Great Depression in the 1930’s was extremely severe.[2] In order to encourage domestic consumption of American goods, the government intervened and placed tariffs on imported goods. This caused other countries to do the same in order to recover their own economy – international trade, in effect, slowed down. The impact on the economy was worldwide.[1] The Great Depression was an important period of time, because modern liberalism emerged, replacing the constitutionalism principle in classical liberalism – government began to actively intervene in the economy (i.e. New Deal) to protect consumers, and the movement towards welfare state began.



Reference

1. "Evolution of Modern Liberalism." Perspectives on ideology. Edmonton, Alta.: Alberta Education, 2010. 206-208. Print.
2. "The Timeline, People, and Events that Shaped the United States of America." The Great Depression Facts. N.p., n.d. Web. 18 Mar. 2012. <http://www.thegreatdepressionfacts.org/>