How was life during the Great Depression? By Toni Lee Robinson October 9, 1929 In October 1929, the stock market crashed. The Great Depression was the worst thing it had happened in American history. It also affected the entire country. Many American people lost their money and their jobs.
The event that started the Great Depression was “Black Tuesday.” On this day, the stock market crashed. The so called “bubble” had burst. The roaring twenties were over. Banks were forced to close, as they had no more money for the massive amount of people that were making withdrawals. Many lost their jobs, and were forced to look for work elsewhere.
Labor Union strikes were the most prominent form of worker insurrection against employers. During the period of 1875-1900, many labor unions participated in strikes, however many of them failed to achieve their goals. The biggest reason that farmers and workers went on strike was clearly stated by a machinist before the Senate Committee on Labor and Capital. Because machines were taking jobs away, workers would lose their livelihood, and most likely their only source of income. In the year of 1877, employees working for the four largest railroads went on strike due to the fact that their employers cut their wages by 10 percent; this was known as the Great Rail Road Strike.
Known also as Black Tuesday, October 29th left stockholders shattered with recorded losses reaching $40 billion dollars (Kelly, n.d.). Many banks and financial institutions began collapsing which led to irretrievable, uninsured deposits and savings. Fearing further loss, people began spending less which led to a decrease in production and an increase in unemployment. As companies began to fail, the government devised the Smoot-Hawley Tariff in order to protect American businesses. The Tariff placed high taxes on imports leading to a decline in international trade.
The storms and floods had taken all the good soil in the 1930s. People survived off of beans, rice, corn, and milk. Many slaughtered the cattle for meat because there was no market. All around the world people were living in horrible living conditions and there were not many jobs for those in need. Over 25% of people were unemployed and houses were being foreclosed
Starting in the year 1929 and lasting throughout the 1930’s, America was brought into the worst economic slump that America and the rest of the world has ever been brought into. This would soon be known as The Great Depression. What caused this depression was the crash of the stock market in 1929 and almost all of the Americans had to suffer from the stock market crash. People were without jobs, homeless, and left without nothing but their families and the clothes on their back. Some of the hardships that the Americans faced were unbearable.
Farming and rural areas suffered as crop prices fell by approximately 60%. There were many causes of the Great Depression, ranging from poor spending and over production to banks failing and the stock market crashing. Paragraph 2: Due to the Roaring 20’s, people were overconfident due to the information given by bad leaders, which led to poor spending. Doc A+B: According to the business cycle, there was going to be a 5 year growth for everyone in the US. -They would all become rich and poverty would just go away (Words of President Calvin Coolidge) Doc C: John T. Raskob, a well-known economist, told people to buy more stocks and in invest in banks and you’ll become a millionaire.
THE GREAT DEPRESSION American success failed when the stock market crashed in 1929 during President Herbert Hoover’s administration. All of a sudden people were out of work, thousands lost their savings, and the nation was in a state of shock. Even millionaires lost their money. The problems and the causes that led up to The Great Depression were multiple. Farm income went down from the drought.
This means that the prices for stock were too high, far higher than they were really worth, then they fell drastically. People who had borrowed money to buy high-priced stocks (intending to sell the stocks at a profit and repay lenders), went bankrupt. That’s further expounding on what I said about buying on margin. Black Tuesday also marks the beginning of the great depression (Regan3). Living conditions during this time were unsanitary and horrible.
The stock market crash was involved in the causes of the Great Depression, because it was the trigger point of it all. “In the 1920s many people wanted to put their money into stocks, so prices got higher and higher” (Lunn, Moore 235) the stock markets were very high by 1929. Although there were some people who bought the stocks, “the stock market was fuelled by borrowed cash.” (Berton 29) in other words the stock market mainly made sales from people who could not afford the stock completely and when it crashed on October 29th, 1929 “the Montreal and Toronto stock exchanges also plunged downward; 16 companies alone lost $300 million of their value” (Bolotta, Hawkes 104) also causing investors who were buying on credit, to lose their homes, businesses, cars and many of their other belongings that they put on loan to buy their shares, leaving them homeless, jobless and if having a car for transportation was a necessity, then these investors and their families had nothing at all. Therefore the stock market crash was a very significant part for the cause of the Great