Great Depression and the New Deal Research Paper

Great Depression and the New Deal - Research Paper Example The Great Depression had far reaching impact on the economic and political climate of the US. By 1933, unemployment had soared to 25 percent. Industrial production declined by 50 percent as investments fell by 98 percent. Between 1929 and 1932 the income of the average American family was reduced by 40%, from $2,300 to $1,500. Politically, the federal presence came to play an increasing role in the American life, because of various relief projects launched by the government to bring the tottering masses to their feet. The Depression brought about a major realignment of political forces. Politics came to be dictated by the economic conditions. At the height of Depression, people chose the Democrats over the Republicans that had been the dominating party since the Civil War. A new coalition consisting of big-city ethnics, African Americans, and Southern Democrats committed, to varying degrees, to interventionist government came into being. In the 1930 elections, Democrats took control of the House of Representatives. Republicans lost control of the Senate in 1932. The shadow of the Depression dominated American political life for decades. The dominance of Democratic Party in the House of Representatives, Senate, and the White House continued for the next 50 years. The presidential elections of 1932 were held in the backdrop of the Great Depression. During the election campaign, Democratic candidate Franklin D. Roosevelt castigated the incumbent Herbert Hoover for being unable to contain the downward spiral of the economy.