Stock Market and Economic Recovery in US

Subject: Economics
Pages: 2
Words: 319
Reading time:
2 min

New deal policies consisted a package of economic programs and strategies that were drafted during the 1933- 1936. The main goals of these policies were to deal with the great depression effects that were being encountered in the United States. The policies include policies to reduce unemployment, to reform financial and business practices and to promote the recovery of economy during this period. The New deal policies were grouped into two; the first new deal that target groups such as banks and industrial and farming sectors and the second new deal that promoted labor unions to help employees from being oppressed and to fight for the wages to be increased.

Stock market and economy recovery

During the beginning of great depression in the early 1930s most of the consumers cut back their expenditures in the stick market due to the losses they had incurred as an effect of the great depression that was affecting the states economy. In addition to the losses they had incurred, some of the stock market consumers who were farmers were also counting losses for the drought that had destroyed agricultural products which were the heart of stock market at their period.

As the effects of the great depression continued to be felt in the mid 1930s, the interest rates of stick market dropped. Some of the stock markets such as for automobiles had showed the greatest price reduction in history. This resulted to stock market crash. Several factors resulted to the crash of stock market during this period including debt deflation, International trade breakdown and other structural factors. By the end of the 1930s states started to brace up for the economy recovery. They did so by implementing policies such as the New Deal policies that its main goals were to fight poverty through reducing unemployment and increasing employees wages.