The Great Depression was catastrophic. It was a critical time period in our history when our economy crashed. People lost their jobs, and families became homeless. Today, 564,708 people are homeless. Back then, two million people were homeless. The Great Depression has helped shape the United States to become the way we are today. There are numerous reasons this economic catastrophe happened. The Great Depression started in the year 1929. It ended in 1939. It is known to be President Hoover’s fault. However, that may not be entirely true. Four of the many reasons the Great Depression started are an unequal economy, credit disasters, worldwide depression, unemployment, and poverty. The unequal economy was showing signs of an economic disaster in the …show more content…
For the farmers they had to keep their businesses running, and since they didn’t have enough money to buy supplies they used credit. They also bought land using credit. To buy cars citizens used credit if they didn’t have enough money. However, when farmers and consumers (the citizens) didn’t pay off their loans, banks shut down because they had no money left. The worldwide depression struck not only the U.S., but also our allies. Europe needed money from our banks because, they had to sell goods to Americans to pay off their debts from World War 1. Due to the fact banks had no more money to give, they shut down causing our foreign allies to spend less money. Since the United States had to lower their funds, tons of people lost their jobs. By 1932, 25% of Americans didn’t have a job. For the people who didn’t lose their jobs, their pay got cut. The people who lost their jobs had issues paying for mandatory items. They fell under the poverty line. Soup kitchens served food for these people. The food wasn’t much, but for a person without money it helped. Soup kitchens often served bread, coffee, and a small bowl of soup. There are still charities today that help homeless/jobless
DBQ Depression Essay Draft There are many opinions on the Great Depression. The stock market crash was a big part of this problem. Taxes and tariffs on imports did not help either. What came after the crash was the bad part. The stock crash and tolls are what caused the Great Depression.
During the 1920s, the United States was leading the world in economic growth. However, during Herbert Hoover Presidency the United States experienced the largest and longest economic crisis in history, which was referred to as the Great Depression. There were many explanations and arguments to what caused the Great Depression to take place. Some economists argued that the fall back of the agricultural sector contributed to the Great Depression. Some blamed the decrease in taxes and absent of government regulations, which supported the belief that markets were self-regulating.
The Great Depression occurred after the stock market crash in 1929, but lasted for years after, until 1940. One reason the crash occurred was because banks were failing. Banks were lending out money to anyone even if those people did not have good credit. Another reason was that productivity of products were high, but the demand for those products decreased. Since people were not buying, companies were losing money, which led to lay-offs.
Three of the main causes to The Great Depression involved the crash of the stock market, job loss and buying on credit. To begin with, the crash of the stock market was the starting factor that let to the downfall of many lives. The stock market was flourishing with investors but reduced economy by 60% over all (Document 1). Around 4 million Americans including many banks had invested large amounts of money in stocks hoping to earn gains (Document 3).
The Great Depression was devastating to many people. From 1929 - 1939 life was a struggle. This all began when the stock market crashed in 1929 causing a great effect on people. Most stopped using banks and no longer trusted them. Jobs were scarce and people looking for them were plentiful.
The Great Depression was the worst economic crisis our country had ever seen. The American government was unprepared for what would happen to the country after the stock market crashed in 1929, and because of this, many people lost everything they had and became in debt. Once Franklin D. Roosevelt was elected, he worked hard at putting a plan in place to prevent anything like this from ever recurring. The Great Depression left people with next to nothing after the stock market crashed, causing investors to lose everything and optimism disappeared, which resulted in laws to prevent it from happening again.
Imagine that one day you’re living a life of average or good wealth, good job, and, great homes. Then just imagine that all of a sudden all of that is taken away from you in an instant. You are then left with nothing now roaming these poor American streets in desperate hope of jobs. Unfortunately, events like this did happen in real life and many real Americans had to live with this economic nightmare. The United States suffered one of it’s biggest economic depression from 1929 to 1939 which was known as the Great Depression.
Firstly, the Great Depression harmed the American people by having them change their lifestyle. Since so many people lost their jobs, money was terribly scarce.
The Great Depression was caused by speculation and installment buying, income maldistribution, and overproduction because each of these factors combined made the economy worse before and after the stock market crash, which led to The Great Depression. Speculation and installment buying helped caused The Great Depression because people were buying so much stuff on credit, when
America had experienced other depressions or “panics,” but none were like the Great Depression. The Great Depression began on October 29, 1929, Black Tuesday, with the stock market crashing. Most people believe that the cause of the Great Depression was the stock market crashing. Although that is what triggered the Great Depression there were many underlying causes that lead up to the stock market crashing. Some of the underlying causes include under-consumption/over-production, uneven distribution of wealth, loose banking and corporate regulations, tariffs policies, and the stock market.
In the early 1930s the labor force in countries that were industrialized saw as much as one forth of its workers unable to find work. Conditions were starting to improve by the mid 1930s, however total recovery did not happen until the end of that decade. This was a very difficult time in United States history and around the world, but it could be said that something good came out of it, central banks throughout the world now try to thwart or moderate recessions. It is unclear whether a change like this would have occurred if not for the
And to cover up the expense the banks have to get the money from the interests they get on loans. The banks also gave loans to the stock market brokers and as the stock markets failed the bank couldn’t get the moneys back as a result they failed. And this bank failure along the stock market crash caused a great harm to the Us economy. During the mid 1920s the stock market went through
The Great Depression started in 1930s due to the fall of the stock markets. Many people who invested their money into the market lost all of their things and many children lost their education. Everyone suffered during these times, not just the ones in the market. Those who lived in the cities during The Great Depression suffered when they lost their jobs and had no way of earning their money. Having no money led to eviction and families became homeless.
The Great Depression was an economic disaster in the U.S that caused many people to lose all their money and jobs. This economic slump lasted about 10 years from 1929 through 1939. It was set to be, “the longest and most severe depression ever experienced by the industrialized Western world” (P1, L2). And caused many other countries to suffer as well.
Causes of the Great Depression The Great depression began in 1929 and lasted till the 1940’s was a devastating time, because the country’s economy plummeted dramatically. A lot of deaths during this time from starvation and diseases also the country as a whole was affected because of the trade market. A lot of factors contributed to the great depression the main causes were the unequal balance of wealth, stock market crash, and the debt from WW1.