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.
It was, without a doubt, the longest and most severe economic downturn in American history. Widely held to begin with the stock market crash of 1929, the Depression lasted until the advent of American involvement in World War two unemployment skyrocketed during the Depression years, reaching levels as high as one third of the population. Output shrank tremendously, falling by ten per cent a year from 1929 to 1932. Nearly half of the commercial banks of the United States failed during the Depression. Crop prices fell by over fifty %.
There were 288 local businesses looted and burned, which were not capable of being rebuilt and never returned following the Watts Riots. With all of those businesses lost, the jobs occupied by residents were lost as well. The black community had a high unemployment rate, and the popular belief was that black people were not being afforded equal opportunity regarding employment. Poverty soared with the high unemployment rate. In the end, 288 businesses worth an estimated $200 million were looted and destroyed.
Many were left unemployed and had to take to the road to find work. A severe drought also ravaged America, destroying crops causing vast, treeless plains. This came to be known as the Dust Bowl. The unrelenting drought and the plummeting prices of crops, ruined many farming families. The Great Depression is evident throughout the novel through the hardships that the people of Maycomb experience.
Then, Countless number of individuals lost their life savings along with the Depression. After 3 years, the value of stock on the New York Stock Exchange was worthless. Also, millions of Americans were out of work at the same time. Banks, individual businesses, and factories were failing everywhere. Even, income of farmers fell about 50 percent (Gene, 2008).
Modern American Society These days it is tough to be an American. Everyone is losing their jobs, money, and homes. America is in the worst shape it has ever been since the Great Depression. Franchises across the country are making massive downgrade within their businesses. Employees are losing their; 401(k) accounts, pension plans, and their social security benefits.
Then finally on October 29,1929th the stock market crashed, because no one was buying and this directly led to the Great Depression. After the Stock market crashed not even 2 months later, the stock holders had lost more than forty billion dollars. Though the market had once again began to come of its losses back by the end of 1930, it was not enough and America entered what we now know as The Great Depression. After the stock market
Before we can explore causes, we first need to define what we mean by The Great Depression The Great Depression was a global economic crisis that may have been triggered by political decisions (war reparations post-World War I), protectionism (Congressional tariffs on European goods) or by speculation .Worldwide, there was increased unemployment, decreased government revenue, a drop in international trade. Its kickoff in the U.S. economy was “Black Thursday," October 24, 1929. That's when 12.9 million shares of stock were sold in one day. It was triple the usual amount. At the height of the Great Depression in 1933, more than a quarter of the US labor force was unemployed.
The middle class was nearly non-existent. This occurs often in the world, but the Great Depression was the worst economic downfall in the history of the U.S. It spread and affected all of the industrialized world. The depression began with Black Tuesday, and lasted for nearly a decade. According to Paul Alexander Gusmorino, the main cause of the drastic downfall was the combination of unequal distribution of wealth and the extensive stock market speculation that took place in the later years of that decade.
The strike, which lasted a total of five months, affected 40% of the world’s production of platinum with the three main producers losing a combined total of R24 billion in revenue by the end of the strike. The platinum industry also lost around 1.2 million ounces of platinum