There have been many depressions throughout American History; the first beginning in 1807 and ending in 1814. The worst of these depressions was called The Great Depression. This economic demise began in 1929 and resulted in four years of chaos; eventually ending in 1933. The cause of this catastrophe
These days are considered the most tragic days in the American economy. These days began the “New Era” or a time of low unemployment when general prosperity masked vast disparities in income. John Maynard Keynes said” The extraordinary speculation on Wall Street in past months has driven up the rate of interest to an unprecedented level” Bierman Jr. 1). “There is a warrant for hoping that the deflation of the exaggerated balloon of American stock valves will be for the good of the world” (Bierman 1). It started as the Dow Jones stock dropped twenty three percent on Tuesday October 29th; this resulted in a loss of $8-9 billion
$2,000 marked the poverty line in 1929, and yet 60% of Americans made under this amount. This illustrates the immense unequal distribution of money throughout Americans in that only 40% could meet the bare minimum necessary to live. More than the majority of America was living in poverty, causing unemployment and failure to properly distribute money throughout the nation. This horrible situation plummeted the economy and Americans as a whole as well as individually, which makes I.t a main cause of The Great
As unemployment reached an all time high in 1933, this decade, was squished between the roaring twenties and World War II, and was left little to be highlighted other than the dismal consequences of the Great Depression. An all-time low in American confidence, the years between 1929 and 1940 tested the strength, courage, humility, and perseverance of those forced to suffer a quickly dropping economy. No longer did hard work transform into success or even hope. Middle class working families now joined the ranks of the poorer classes and farmers hit by the Dust Bowl in the 1920's. The enormous unemployment disrupted family structure as it forced the male provider shamefully into bread lines.
By September 1930, the economy of Germany was in deep depression as a result of the Wall Street Crash of November 1929 and the recall of the American loans that had propped it up. Unemployment had rocketed to 3.1 million (15.3%), and the Weimar politicians seemed incapable of solving the problems. In this situation the Nazis began to be seen as a way out, and their support rose. They gained 107 Reichstag seats (18.5% of the total). By July 1932, the economic depression that
The Great Depression was the longest lasting economic decline in the history of the United States. After the stock market crash of October 1929, the Great Depression followed. The event caused Wall Street to go into complete dismay, and wiped out millions of banks. For the next decade, social fabric was changed as well as the role of government. For example, spending was lessened and investment was dropped.
The collapse of stock market happened because it had a weak foundation. In fact, it was dependent on borrowed money; banks would lend money to the population to buy shares in the market without making sure the borrowers were able to pay back. Moreover, facing the crisis over nine thousand banks were obliged to close, for they invested their client's savings in the stock market. Going through rough time financially, Americans are drastically forced to reduce their spending which lowered the amount of production; therefore, employers slashed the numbers of employees that caused the unemployment rate to rose from 4.2 in 1928 to 8.7 in 1930 and to 23.6 in 1932. In the middle of the crisis, several social classes experienced a harsh time.
Families suffered a dramatic loss of income during Herbert Hoover's term in office, dropping 35% in those four years to $15M. This put a great deal of stress on families. Some reacted by pulling together, making due with what they had, and turning to family and friends for help. Only after exhausting all alternatives would they reluctantly look to the government for help. Other families did not fare as well, and ended up failing apart.
The New Deal was passed to reverse the economic depression that the U.S., as well as the world, was experiencing. During the Great Depression, “unemployment rose to 25 percent and homelessness increased. Housing prices plummeted 30 percent, global trade collapsed by 60 percent, and prices fell 10 percent”(Amadeo). It was through that same love for others that FDR passed the specific bills that make up The New Deal. The New Deal was composed of 47 programs.
The Beginning of the Great Depression One of the most historical events took place from 1929 thru the 1930’s. It took place in one city, but it affected the whole country of America. This well known episode is described as the first era of The Great Depression. The one situation that sparked this chaotic event was the major stock market crash that occurred on October 29, 1929. (Rothbard &Newton, Intro) During this time Herbert Hoover was president and the American culture was spiraling out of control.