The Effect Of The Great Depression 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.

The Great Depression is probably one of the most misunderstood events in American history. It is routinely cited, as proof that unregulated capitalism is not the best in the world, and that only a massive welfare state, huge amounts of economic regulation, and other interventions can save capitalism from itself. The Great Depression had important consequences and was a devastating event in America, however many good policies and programs became available as a result of the great depression, some of which exist even today.

Following the economic boom of the 1920s, there was a period of economic depression. The United States and its citizens were greatly affected. There were many economic problems that occurred such as unemployment rate rising tremendously and many more. Herbert Hoover and Franklin D. Roosevelt were presidents during that time and dealt with the economic problems. They helped create programs to financially stabilize the country again. The Great Depression ended when the United States entered World War II.

The stock market crash of 1929 sent the nation spiraling into a state of economic paralysis that became known as the Great Depression. As industries shrank and businesses collapsed or cut back, up to 25% of Americans were left unemployed. At the same time, the financial crisis destroyed the life savings of countless Americans (Modern American Poetry). Food, housing and other consumable goods were in short supply for most people (Zinn 282). This widespread state of poverty had serious social repercussions for the country.

How does one keep faith in a country during times of destitute and agony? In 1929, the stock market crashed. Poverty struck the country fast like the huge dust storms in the west. The new president, F.D.R, promised to relieve, recover and reform the country with various organizations. Churches and other groups set up food lines. F.D.R’s main goal was to put every American to work. The dilemmas of the Great Depression were soon set out to be handled by actions by the federal and state governments.

Franklin D. Roosevelt was a man who besides his intelligence, charm and strong confidence, he was able to sustain the nation through the most overbearing crisis know as the Great Depression as well as World War II. While managing to stay optimistic, Franklin Roosevelt helped people regain faith in themselves. Despite all the chaos going on at the time, “he was met with that understanding and support of the people themselves which is essential to victory (pg. 90).” He was praised for pushing the government to help those who were underprivileged. This was a new beginning in time for Americans known as the New Deal. He told the country to live by; “The only thing we have to fear, is fear itself (pg 90).” Franklin Roosevelt made a very

The late 1930s were a time of great suffering and uncertainty in the United States. The country was crippled by effects of the Great Depression; the result was a massive decline in jobs and economic stability that dramatically impacted both rural and urban communities. Millions of Americans were out of work, unable to support their families. State organizations and charities were unable to meet the growing needs of the people and many were left to fend for themselves. The Great Depression brought with it a legitimate, tangible fear about the future of America and its citizens. Upon the outcry of the American people a “New Deal” was struck giving the citizens of America a lifeline of hope in the ever-growing State. The New Deal was a succession of programs, organizations and laws, enacted by President Franklin D. Roosevelt, directly addressing the issues of jobs, welfare and uncertainty through direct federal involvement. The creators of the New Deal worked across party lines to reshape the norms of state involvement whilst making a great legislative effort to turn the declining economy around. The New Deal reshaped the federal government’s relationship with its citizens in a time of economic uncertainty helping to grow the State in a time of peace.

America had been a generally conservative nation with a population that avoided personal debt. However, this would all change during the decade known as “The Roaring Twenties.” This prosperous period embodied huge changes in the general lifestyle and culture of the American people as they embraced consumerism. However, during the 1920s the economy also faced numerous unfortunate events and unstable practices that would lead to one of the world’s worst economic crashes. There were many reasons for the economic downfall, including mass production and consumerism, excess credit and ‘playing’ the stock market, which led to the stock market crash in 1929.

     The Great Depression was a huge economic downfall in North America and involved many other industrialized countries of the world. The Depression began in 1929 and lasted for about ten years. Millions of people lost their jobs along with many businesses going bankrupt. The common misconception of the Great Depression is people think that the stock market crash was the main cause for it. There were many causes for the Depression; unequal distribution of money during the 1920’s was the main cause of the Depression. This unequal distribution happened on many different classes of people. The imbalance of money is what created such an unstable economy. The stock market was doing much worse than people thought

Since the beginning of the Industrial Revolution early in the nineteenth century the United States ad experienced recessions or panics at least every twenty years. But none was as severe or lasted as long as the Great Depression. Only as the economy shifted toward a war mobilization in the late 1930s did the grip of the depression finally ease.

Many people speculate that the stock market crash of 1929 was the main cause of The Great Depression. In fact, The Great Depression was caused by a series of factors, and the effects of the depression were felt for many years after the stock market crash of 1929. By looking at the stock market crash of 1929, bank failures, reduction of purchasing, American economic policy with Europe, and drought conditions, it becomes apparent that The Great Depression was caused by more than just the stock market crash. The effects were detrimental beyond the financial crisis experienced during this time period.

The world had faced two main economic problems. The first one was the Great Depression in the early of 20th Century. The second was the recent international financial crisis in 2008. The United States and Europe suffered severely for a long time from the great depression. The great depression was a great step and changed completely the economic policy making and the economic thoughts. It was not only an economic situation bit it was also miserable making, made people more attention and aggressive until they might lose their lives. All the society was frightened from losing money, work and stable. In America the housing market was the main factor of the great depression. A crisis of liquidity appeared in the banks forming a credit crunch. This period was influenced by over extended stock market shortage of water in the south and over trusting. The American government put down some regulations to control the productions which were essential for the war.

The Great Depression of the 1930s was the economic event of the 20th century. The Great Depression began in 1929 when the entire world suffered an enormous drop in output and an unprecedented rise in unemployment. World economic output continued to decline until 1932 when it clinked bottom at 50% of its 1929 level. Unemployment soared, in the United States it peaked at 24.9% in 1933. Real economic output (real GDP) fell by 29% from 1929 to 1933 and the US stock market lost 89.5% of its value. Another unusual aspect of the Great Depression was deflation. Prices fell 25%, 30%, 30%, and 40% in the UK, Germany, the US, and France respectively from 1929 to 1933. These were the four largest economies in

There were many primary causes for The Great Depression, Unequal distribution of money to the economy,

Imagine waking up one morning, only to find out that all your investments and savings are gone. So if your bank that you invested all your money in collapsed, you didn’t get any money back. This is what happened to millions of Americans during the 1930s. This era was called the great depression.