The Great Depression And The Dust Bowl

1197 Words May 26th, 2016 5 Pages
The New Deal
In the year following the Roaring 20s, the United States had a major economic crisis along with the Dust Bowl that affected many of the american people, but if Franklin D. Roosevelt had not saved the economy with the New Deal, the economy would have never truly recovered.
The Great Depression and The Dust Bowl
The Great Depression was the longest economic recession in the history of the United States. The recession started in the summer of 1929 when stock prices began to rise and also when there was a maldistribution of wealth. Consumers were receiving too little money to spend to keep up with the pace of the growing markets. There were also many other issues that also contributed to the Great Depression, there was a lack of diversification because many people over invested in automobiles and construction.
On the 29th of October the stock market crashed which became to be known as ‘Black Tuesday’. On this day 16 million shares were traded after a wave of panic swept Wall Street. All of the investors that had bought stocks with borrowed money were wiped out completely. After this catastrophic day there was a massive downturn in factories and business. Many employers started firing off their employees, those that were lucky enough to stick with their jobs were getting really low wages. Many americans started buying stuff on credit, they later fell into debt. This Depression caused unemployment to rise to 25% by 1933. The Great Depression was not the only thing…

More about The Great Depression And The Dust Bowl

Open Document