The Great Depression And Its Effects

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.

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.

The Great Depression started in 1929 and lasted up until 1939. It happens to be the worst economic downturn for the United States and the the rest of the world. It caused companies and corporations to eventually go bankrupt as well as workers to be laid off. Another effect of The Great Depression is that factory production was reduced, and the banks started to shut down. In the lowest point of The Great Depression in 1933 nearly 15 million workers in America were unemployed and one half of the banks started shutting down.

The 1920s was known for its prosperous and flamboyant lifestyle. The GDP during that time had risen by 30 percent and unemployment was as at an all-time low of 3 percent. This was not meant to last forever. In fact, it was nearly impossible for this to last any longer than it did due to an imbalance that society was unaware of including that not every citizen was experiencing this uncommon wealth. There were still 3 percent unemployed and even some of the employed members of society did not make enough to support a family and were considered homeless. It was in October of 1929 when this so-called luxurious lifestyle vanished as the stock market crashed at a time when the stock market seemed it would never stop increasing. This caused an economic, downhill, rolling ball effect. Those who took out loans to invest in stocks could not afford to repay the banks causing the banks to fail and close down. When the banks closed down, the depositors of that bank lost their life savings causing them to go broke and some company owners to close their doors. This led to a loss of jobs by the employers of those companies. This time period was known as the Great Depression and rightfully so. It is the most significant setback in the American Economy to date. The Herbert Hoover administration was in effect at this time giving the society an easy target to blame. Come time for the next election in 1932, Americans were ready for a change in authority to bring them out of this seemingly black

During the 1920s the American people led themselves to their economic demise. In America, the Great Depression occurred during the 1930s after the crash of the stock market. “The Roaring Twenties”, which occurred before the Great Depression, was a time when the assembly line created more jobs and money to be used. This new economic prosperity, brought about the stock market, in which hundreds of Americans put in their money in hopes of their company making profits. The Great Depression was caused by stockholders using more money then they could pay back, workers using the non-shameful credit to buy products, which led Americans into debt, and the lack of demand, when there was an increase in supplies.

Few Americans in the first months of 1929 saw any reason to question the strength and stability of the nation's economy. Most agreed with their new president that the booming prosperity of the years just past would not only continue but increase, and that dramatic social progress would follow in its wake. "We in America today," Herbert Hoover had proclaimed in August 1928, "are nearer to the final triumph over poverty than ever before in the history of any land. The poorhouse is vanishing from among us."1

Following WW1, in the 1920’s, American firms yielded high profits and continued expansion. According to ushistory.org, “By 1929, companies had expanded to the bubble point. Workers could no longer continue to fuel further expansion, so a slowdown was inevitable.” There was a ton of over production and a lack of consumers purchasing goods. In addition to this, there was over production in agriculture which meant lower prices. These issues put farmers in debt. Historically referred to as Black Tuesday, the stock market crash in 1929 was a major contributor to the depression.

After 1927, consumer spending declined and housing construction slowed. Inventories piled up, and in1928 and 1929 manufacturers began to cut back on production and lay off workers. Reduced income and buying power in turn reinforced the downturn. By the summer of 1929 the economy was clearly in a recession. Although the stock market crash and its immediate consequences contributed to the Great Depression, longstanding weakness in the American economy accounted for its length and severity. Agriculture, in particular, had never recovered from the recession of 1920-1921. Farmers faced high fixed costs for equipment and mortgages incurred during the high inflationary war years. At the same time prices fell because of overproduction, forcing farmers to default on mortgage payments and risk foreclosure. Because farmers accounted for about one-forth of the nations gainfully employed workers in 1929, their difficulties weakened the general economic structure. Other industries also had experienced economic setbacks during the prosperous 1920s. The older industries such as textiles, mining, lumbering, and shipping faltered, newer and more successful consumer- based industries, such as chemicals, appliances, and food processing, proved not yet strong enough to lead the way to recovery.

The Great Depression was a time of hard long working days , short sleepless nights , days without eating and a lot of traveling and today is much different with the new high tech technology people are creating to the money people receive and much more. Although the Great Depression was terrible time to live through , there is some similarities to today but not as significant from before. There are many elements on society that are different from the early 1930’s and today , 2016. Some prime examples are the houses they have now , which are actually homes and not boxes they used to sleep in , the jobs are completely different in what people are doing to the money they are making and another one is the liveliness the community did for fun to enjoy themselves with their peers. so much has evolved from before from the physical , visual , economical , and emotional standpoint but not all is perfect just a major upgrade from the stock market crash.

The period between the end of the Great War and the start of the World War II was that of peace and despair. The Great War lasted four years and millions were killed or left disabled (The Earth and Its Peoples, page 774). The political tensions between the two sides still hung around and economies went into depression until around 1920. When peace was thought to be around the corner, the tensions proved to be too great and lead to another war.

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.

“Shrunken perhaps by the vicissitudes and exigencies of the times, Broadway presented itself admirably throughout the Thirties. It not only managed to preserve the best, but also nurtured and expanded them. At the brink of the new decade, Broadway stood smaller but brighter”

The Great Depression was when everyone was penniless, out of work. Some of the people didn't even have homes. When the New York stock market crashed, everybody became poor. Millionaires were just as poor as the ordinary citizens. The everyday civilians lost everything their homes, their jobs, their money, it was a bad time for everyone. Soon it spread to the rest of the country. Then everybody's savings disappeared. It was one of the worst disasters the world has ever known. Barely anyone was in work and making money. Soon it spread to the rest of the world. It was one of the worst disasters ever.

The Great Depression is a defining moment in time for not only American, but world history. This was a time that caused political, economical, and social unrest. Not only did the Great Depression cause a world wide panic, it also caused a world wide crisis unlike any before it. This paper will analyze both the causes and the effects of the Great Depression in the United States of America.

What was the world’s greatest economic disaster and left millions of citizens unemployed for years? The Great Depression was a major economic disaster which left the people of the world shocked. Many countries were already left in a bad position due to the effect of World War I. Countries that bought and sold on the international market were affected. The United Kingdom, France, and Germany were just a few of the affected countries that had a difficult time getting their country back to great economic shape.