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Great Depression, Mass Unemployment, and Business Leadership – Case Solution

This "Great Depression, Mass Unemployment, and Business Leadership" case study looks into the most difficult problems facing the United States and the FDR Administration in the 1930s. It also discusses the government actions undertaken to address these challenges.

​Jason Scott Smith
Harvard Business Review (804163-PDF-ENG)
March 25, 2004

Case questions answered:

  1. What do you think were the most difficult problems facing the United States and the FDR Administration in the 1930s?
  2. How did the people and their government address these challenges?
  3. Name four of the most transformative uses of federal government power (New Deal programs) during the 1930s. How did these reflect the power of the General Welfare Clause?

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Great Depression, Mass Unemployment, and Business Leadership Case Answers

1.) What do you think were the most difficult problems facing the United States and the FDR Administration in the 1930s?

From the documentaries, it is noted that the most difficult problem that the US and FDR administrations faced in the 1930s was the Great Depression. This was the worst economic downturn in global history[i].

The Great Depression began with a crash in the stock market and ended spreading to affect the global economy.

When FDR was elected as the president in 1932, he immediately embarked on developing an ambitious plan of getting the country out of the Great Depression.

He, therefore, signed the New Deal, domestic legislation that expanded the function of the federal government in the country’s economy to tackle the impacts of the Great Depression[ii].

2.) How did the people and their government address these challenges?

The FDR administration signed the New Deal. This was a group of domestic policies that enlarged the role of government in the economy in response to…

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