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The Great Depression

Decent Essays

Instructor: Dr. Line
During the 1930s, which was also called “the Great Depression”, banks failed in larger numbers than at any other time United States history. Almost one-third of the depository institutions in operation at the onset of the downturn disappeared during the contraction. Therefore, the economic, especially the bank’s system, also was hurt painfully and terribly. Of course, the Pacific Northwest area could not be out of that list. So the main point is how the Great Depression affects to the Pacific Northwest in general and Washington State specifically economy especially about the banking system.
First of all, the definition of the “Great Depression” should be understood clearly before the any further information can be discussed. The Great Depression began in the summer of 1929. In that morning, “the downturn became markedly worse in late 1929 and continued until early 1933.” The real output and prices fell in a straight line which showed the dropping number in an industrial production nearly 47 percent and real GDP (which is Gross Domestic Product) fell 30 percent . The wholesale price index declined 33 percent (such declines in the price level are referred to as “deflation”). Although, the government had tried to prevent the unemployment rate at one significant, the rate still exceeded 20 percent at its highest point . Because of no job, money became the most valuable that they did not want to spend. Though, it was the reason that led to the failure of

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