How to Live on a Low Budget: Historical Economic Analysis Essay

Imagine this. You wake up one morning in the year 1929, in your luxurious, pricey mansion. You then make your way downstairs to eat that nice big breakfast. Then you kiss your family good bye and head off to your fancy job. You come home that evening and suddenly you’re flat broke. Meaning all your money and life’s savings vanished. Unreal right? Well it was real for hundreds of families on October 29, 1929. The day the stock market crashed and when America’s confidence was challenged greatly.

During the Great Depression, many families were left poor with no income or savings. With manufacturing productions decreasing, prices

One of the first things that led to a crashing course of events was the people financial tragedies. According to one person who had lived through that time, “We weren’t hungry but we were penniless” (Hastings). The use of the word “penniless” really represented how people had zero money. This was not the type of poverty where society was not able to afford self wants. This was the type of poverty that people could barely afford their own needs and necessities. It’s very important how stressed this topic must be. Another quote says “With no dependable income we cut back on everything possible.” (Hastings). That

The Great Depression was a very influential era in American history, affecting many future generations. One of the most prevalent impacts it had on society was the extreme poverty that swept across the nation, affecting both people in cities and in the country. The main cause for this poverty was the mass loss of jobs among the middle class. Millions lost their jobs and consequently their homes. Families lived out of tents and cars in shanty towns or Hoovervilles. In these camps, many people didn’t have their basic human needs met, children and adults alike starved. They lived in clothes that were caked in dirt and tattered, too small for growing children and too cold for the frail elderly. Government relief programs attempted to help but offered little support to the now impoverished families of the millions that lost everything.

During the 1920’s, America was a prosperous nation going through the “Big Boom” and loving every second of it. However, this fortune didn’t last long, because with the 1930’s came a period of serious economic recession, a period called the Great Depression. By 1933, a quarter of the nation’s workers (about 40 million) were without jobs. The weekly income rate dropped from $24.76 per week in 1929 to $16.65 per week in 1933 (McElvaine, 8). After President Hoover failed to rectify the recession situation, Franklin D. Roosevelt began his term with the hopeful New Deal. In two installments, Roosevelt hoped to relieve short term suffering with the first, and redistribution of money amongst the poor with the second. Throughout these years of the

Families found themselves setting up in a way unfamiliar before. The Depression bombarded families who lost everything in their saving accounts and were suddenly facing poverty. Around nine million families lost everything they had in the banks creating two kinds of poor; the poor who were already suffering to make a living and new the “new poor ,” middle class Americans losing their homes left and right. Men and women’s roles

The stock market crash, called Black Tuesday. Unequal distribution of wealth was a key factor during the time period as well. The day know as “Black Tuesday” was the day the stock market crashed. This led to the fall of stock prices, in fear, people sold their stocks and gathered the money they could. The people who didn’t, lost all of their stocks. Those who bought them on credit, they were now in debt. Investors lost a collective amount equal to the amount spent in WWI, that’s billions of dollars gone, approximately thirty-two billion dollars (32,000,000,000). As bad as the crash was, unequal distribution of wealth did not help. The rich saw an income increase of 70%, and the poor saw an increase of 9%. More than 70% of families earned less than $2500/year. Many of these families couldn't afford household products, such as the flood of overproduced goods. Only one out of ten families owned an electric refrigerator. One thing many people overlook when on the subject of the Great Depression is the president's influence on the situation. The two presidents during this time were Herbet Hoover and Franklin D. Roosevelt. Hoover was in office during the collapse of the economy, he didn’t believe in national relief, he believed in self-prevalence and self-help. His beliefs didn’t get the confidence of the people, in 1933, a fourth of working American’s were out of a job, that’s more than fifteen million people unemployed. Many people disliked Hoover, so when they needed to make a home out of paper, glass, tin, or whatever they could find, they named the towns constructed from these items “Hoovervilles”. They were found mostly on the outside of cities. Hoover's idea of self-reliance didn’t get him reelected, he lost to Franklin D. Roosevelt in 1933. Roosevelt brought forward a new strategy to take on the economic problems, it was called the New Deal. The New Deal was a series of actions him and his

The world has seen many civilizations. One of the most prominent civilizations in southern Asia was ancient India. Ancient India was well known for their caste system. The caste system is believed to have been created around 1500 BCE. It separated the people of ancient India into four groups that determined their significance. The brahmins made up the highest caste with priests and religious leaders. The second group was the kshatriyas and they were the kings and warriors. Third were the vaishyas. They were made of traders, farmers, and other working class people. Last was the shudras and they were laborers. A fifth group existed separately from the caste system. These were the dalits which meant the untouchables and they were thought of as inferior by the other castes. Under this system some were powerful while others were weak and powerless. India’s social structure was built upon the caste system, which is still used today. The caste system affected religion, government, and people in different ways. India’s caste system allowed their religion and their government to take root, and shaped their social class.

The caste system initially served to maintain strict social boundaries between the invaders and the previous inhabitants. Through the generations, the origins of the caste system were forgotten and it became the general rule of a single society (University of Wyoming, 1997).

During the 1920’s, America was a prosperous nation going through the “Big Boom” and loving every second of it. However, this fortune didn’t last long, because with the 1930’s came a period of serious economic recession, a period called the Great Depression. By 1933, a quarter of the nation’s workers (about 40 million) were without jobs. The weekly income rate dropped from $24.76 per week in 1929 to $16.65 per week in 1933 (McElvaine, 8). After President Hoover failed to rectify the recession situation, Franklin D. Roosevelt began his term with the hopeful New Deal. In two installments, Roosevelt hoped to relieve short term suffering with the first, and redistribution of money amongst the poor with the second. Throughout these years of the

The fortunate middle class Americans unexpectedly, during the Great Depression, didn’t even look twice at the luxuries of the world. Just as any American during that time, they had their focus on the necessities of life such as food and shelter. Many worried about losing their home because they could barely keep up with the paying bills. As a result, the Homeowners Loan Corporation (HOLC) helped refinance home loans supporting Americans and allowing them to stay within their homes. Many middle class and upper class women began writing their own personal budgeting accounts to help them pay bills as well as food. They also taught other women how to properly budget their own small sum of money. They budgeted to help them keep control of the money they had and make sure that they had the right amount of money with them all the time. In an article written by Richard C. and Sharon M. Hanes told a little bit about a lady and how she and other women handled money for the food for their family and others saying, “...prided herself on "making do" when feeding her family. If very careful, a woman could feed a family of six on five dollars a week...Mothers could make a pot roast last an entire week...Vegetable gardens sprang up in backyards and vacant city lots. Women did their own canning, pickling, and preserving…” (Hanes). These women were inspiring and thought of the most interesting

The way of life before World War I (WWI) and the way of life after greatly differ. This new way of living is the indirect cause of every direct cause of the Great Depression. During the Industrial Revolution, or time before WWI, people all over the country worked, not only men but also boys, because “the Industrial Revolution transitioned the United States from a rural to an urban society” (The Industrial Revolution in the United States, 2014). They worked long hours and had low pay. According to statistics, “most workers in the worked over 10-hour a day, yet earned between 20 to 40 percent less than the minimum pay necessary for a decent life” (The Industrial Revolution in the United States, 2014). These people’s lives revolved around having very few money and only having necessities. People already had a hard time coming across food, so when WWI began, obtaining food became a big problem. This was not only because they need to feed soldiers, but also their allies’ soldiers. During this time, farming had to expand to feed the citizens of the Unite States and of the Allies. Farming expanded, but a lot of the crops and food went to away from US citizens and there became a need for rationing. Food had to be rationed by the government. The rationing was called “Food Will Win the War” (Food Will Win the War: On the Homefront in World War I, 2014) to encourage voluntary food conservation. It was said to have been voluntary because the government did not want to force businesses

The 1920s seemed to promise a future of a new and wonderful way of life for America and its citizens . Modern science, evolving cultural norms, industrialization, and even jazz music heralded exciting opportunities and a future that only pointed up toward a better life. However, cracks in the facade started to show, and beginning with the stock market crash of 1929 the wealth of the country, and with it the hopes and expectations of its people, began to slip away. The Great Depression left a quarter of the population unemployed and much of the rest destitute and uncertain of what the future held. Wealth vanished, people took their money out of banks, and plans were put on hold. The most significant way in which the Great Depression affected Americans’ everyday lives was through poverty because it tore relationships apart and damaged the spirit of society while unexpectedly bringing families together in unity.

Uneven distribution of wealth serves as another cause of the Great Depression. America was wealthy in the 1920s, but this wealth did not extend to all segment of the society. The gains made by wealthy Americans in the 1920s far outstripped gained made by the working class. By the time of the stock market crash, the upper one percent of the population controlled over sixty percent of the nation’s savings. On the other hand, over three quarters of American families made less than $3000 a year. Problems that could develop from this situation were obvious. The bottom-line three-quarters of families were too poor to purchase much to help the economics to flourish. Underconsumption, in the long run, was a vicious circle to the economy. People had no money to spend. The income of many firms dwindled. More people were laid off or cut hours and thus further cut their spending. The economics became stagnant.

Finances dictate every aspect of an individual’s life, from purchasing services to parenting children. Due to its boundless influences, individuals must learn to establish a budget and demonstrate constructive financial habits. In a high school class I constructed a budget, as the class subsisted as a guide to financial management. While I produced a budget in my past, I do not currently retain a clean, constructed budget, but rather a mental budget. By this, I mean that I stand aware of what my monthly finances are, and do not spend outside of this amount. Each month $25.00 transfers from my spending account to both of my savings account, ensuring that I am at least saving a minimal amount. I generally do not designate money to specific