The Great Depression Was A Time Of High Unemployment Rates

1812 Words Jan 29th, 2016 8 Pages
The Great Depression was a time of high unemployment rates and an unsustained economy that was triggered in part by the stock market crash in 1929, but mostly occurred due to the problems in the industry and agriculture during this time. In the housing industry, there were issues surrounding the shortage of houses that were being built during this time. This lead to an immediate decline in need for glass, wood, and other construction materials subsequently causing these industries to fail as well. The coal industry plummeted about 50% after the recent discoveries of power from hydroelectric sources, natural gas, and oil. This was similar to the decline of the railroad industry due to the rise of trucks, busses, and cars as the primary sources of transportation. Agricultural demand significantly decreased following the end of World War I leaving many farmers (who had taken out loans from the bank to pay for increased production) broke and with an excess amount of produce that they could not sell for a substantial price. President Herbert Hoover was elected in 1928, during which the economy and the country were thriving. However, the Great Depression struck in 1929 which plummeted the country into a state of high unemployment in which many citizens of the country lived in a state of hunger and poverty. Over 90,000 businesses were forced to close and millions lost their savings due to bank failures. During this time, Hoover had several philosophies, all of which…
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