The stock market begun to recover in 1932 but this was not enough to prevent the adverse effects of the great depression [Dav09].
Another factor that heavily contributed to the Great depression of 1929 was the failure of Banks. Many people lost their saving while Bank deposits were uninsured. As Banks continued to fail, people lost more or their saving because deposits were not insured. Additionally, banks were not in a position to issue loans because of uncertainty in a crumbling economy[Jos131]. The third major cause of the depression of 1929 was a general decline in the purchasing across the board. Due to the stock market crash and the failure of the banks, consumer purchasing confidence decline. This had a further crippling effect on other aspects of the already weakened economy. A reduction in the number of purchases forced companies to reduce production. As company reduced product, they were in turn force to reduce to the workforce to cut costs. The unemployment rate rose to about 25% at the height of the depression [Meg12].
Government Agencies and policies relating to Human Resource that arose out of the Great Depression. The government agencies and policies that developed during the depression were an effort by President Roosevelt to save the economy. President Roosevelt created the National Industrial Recovery Act; the purpose of the act was to try and get more money into the hands of the working class. The Act put into law a fixed minimum wage and the maximum hours that an employee can work in a given work. The Act also ended child labor in many industries. Additionally, it gave unions the right to represent and bargain on behalf of workers[Nat11].
In 1935, congress passed the Wagner Connery Act, It established a national agency, the National Labor Relations Board (NLRB). The agency had the power to investigate and decide on unfair labor practice issues. Furthermore, it had the right to conduct elections in which workers would decide if they wanted union representation or not[Pet12].
