The Great Depression Of 1929

1473 WordsMar 8, 20156 Pages
The first economic collapse of its magnitude, the Great Depression of 1929, produced devastating effects with lasting longevity. Though born in America, it maintained its origin and spread rapidly throughout the industrial world. The election of President Franklin D. Roosevelt brought upon changes that improved America’s overall economic situation. A new leader’s viewpoint along with The New Deal and its reform programs, and a second World War improved the conditions brought about by the economic crisis. There were many factors that caused this economic collapse, posing a deep impact on society and politics during this period. The stock market crash of 1929 began the economic turmoil that devastated lives of those especially in the industrial field of work. When the stock market failed, so did the banks of America. Bank deposits were uninsured so when a bank failed, families lost their savings. Unsure of the economic situation and concerned for their own survival, remaining banks became unwilling to create loans. This worsened the situation causing a reduction in expenditures. There also was an overall reduction in purchasing items. With the stock market crash and the fears of further economic troubles, individuals stopped making purchases. This caused a reduction in the number of items produced and thus a reduction in the jobs being kept in the workforce. As individuals lost their jobs, they were unable to pay for items they had bought through payment plans and their items
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