What Were The Consequences Of The Great Depression

The Great Depression was an economic downturn in America that lasted from 1929 until about 1939, making it the longest lasting depression ever experienced by the industrialized world. The stock market crash caused a chain reaction that involved problems such as unemployment, deflation, an increase in debt, and general poverty for lower class citizens. Attempts at escaping the depression weren’t altogether successful. In fact, most of the efforts resulted in high consumer debt as well as over optimistic loans given to the public by banks and business investors. The Depression caused severe political changes in the US as well as its obvious economic failures. After three years of the depression, Herbert Hoover lost the presidential election

The Great Depression was a period of economic turmoil in the United States that lasted from 1929 until the end of World War II. The Great Depression reflected the economic crisis of the Stock Market’s sudden crash despite America’s economic steadiness for nearly a decade during the Roaring Twenties. Two long term causes of the Great Depression were the poor management and infrastructure of the banks and the overall production of agriculture. Farms prior to the Great Depression over produced during World War I in order to feed European nations, armies, and that overall process costed money. Corn and wheat were popular at the time for mass production which led to an increase of farmers taking out loans in order to expand the land. As more crops

The Great Depression was a devastating time for many Americans. From 1929 to 1932, the US experienced an economic downturn that was calamitous to the lives of many people. Millions upon millions of Americans lost everything when the stock market crashed on October 29, 1929. After exiting an era that left people living a life of luxury, the stock market crash came as a surprise. As a result of the stock market crash, many became unemployed and many families were being forced to close their businesses. Although there were many factors that contributed to the cause of the Great Depression, the three main causes were The Stock Market Crash of 1929, high unemployment, a decrease in consumer purchases due to being “stuffed with stuff” during the roaring twenties.

Many americans were affected by the crash because they depended on the stock market. The banks suddenly started to fail also, after the stock market crashed. Some banks started to shut down. The industrial production dropped by half. The farmers could not sell any crops because the prices had to increase. In 1930, the first banking panics began. President Hoover wanted support the falling industry and banks. He tried hard to make loans and help the country. The crash of the stock market was only the beginning of the great depression. Banks were forced to closed, causing clients to lose money and income, making them have a hard time. They had to figure out how to keep up with their incomes and wages. How to help out their family. They lost their jobs and that made it difficult for them to pay their needs. While the jobs became more scarce, unemployment was abundant. The great depression also cause other types of people to become unemployed.

The Great Depression was a time of great economic tragedy during the 1930’s. October 24, 1929 was the day of the stock market crash, causing economical shortage everywhere, even globally, and this scared everyone, including the rich. This day was/ is known as “Black Thursday”, where over 2.9 million shares were traded. On “Black Tuesday”, five days later, more than 16 million more shares were traded in another wave of panic. Many investors then lost confidence in their banks and demanded deposits in cash which forced the banks to liquidate loans in order to supplement their on hand cash reserves. By 1933, around 15 million Americans were unemployed and nearly half of the country’s banks had failed. This stopped Americans from purchasing which then led to less production of goods and decreased the amount of needed human labor. In the end, millions of shares ended up worthless, and those investors who had bought stocks with borrowed money were wiped out completely.

The Great Depression of the 1930s was caused by a sequence of events that all began with the stock market crash of 1929. The crash consisted of a rapidly declining stock market in the fall and a multitude of crashes in the month of October. All of this devastated the economy and resulted in bank failures, reduction in consumption and buying of goods, and an extremely high unemployment rate. Most banks closed but those that survived were: “unsure of the economic situation and concerned for their own survival, [banks] became unwilling to lend money” (Kelly). This meant that banks no longer trusted that their loans would be paid back and feared closing down so they became very frugal.

By the time the NYSE closed, a record of 16,410,030 shares had been traded in one day. The average prices of fifty leading stocks had dropped 40 points a share. This meant that an investor who had bought a stock for $100 a share could only get $60 a share for it. (Feinburg B. Black Tuesday) By 1933, when the Great Depression reached its nadir, some 13 to 15 million Americans were unemployed and nearly half of the country’s banks had failed. Though the relief and reform measures put into place by Roosevelt helped lessen the worst effects of the Great Depression in the 1930s, the economy would not fully turn around until after 1939, when World War II kicked American industry into high gear. The American economy entered an ordinary recession during the summer of 1929, as consumer spending dropped and unsold goods began to pile up, slowing production. At the same time, stock prices continued to rise, and by the fall of that year had reached levels that could not be justified by anticipated future earnings. As consumer confidence vanished in the wake of the stock market crash, the downturn in spending and investment led factories and other businesses to slow down production and construction and begin firing their workers. For those who were lucky enough to remain

Through my search process I came across all the answers to my questions simply because the information concerning the Great Depression is plentiful due to its huge impact on our country. During it all I came first upon the answer to my question how the farmers that lived in the 1930's era. I found out that actually farmers had it quite hard if not harder then the citizens who lived in the city. This is because of the fact that when the Depression happened was also the timing of the Dust Bowl unbeknownst to me. Due to the Dust Bowl and one of the longest droughts in American history lasting from 1930 to 1934 while also covering almost 80 percent of the United States farmers had almost an impossible time attempting to grow crops. This was due to the drought. Also as a side affect of the massive drought was that the more farmers tried to plow and till their fields the weaker they made the sod. So as a result this led to the massive Dust Bowl ending in thousands upon thousands of crops getting destroyed.

The Great Depression is one of the most misunderstood events in not only American history but also Great Britain, France, Germany, and many other industrialized nations. It also has had important consequences and was an extremely devastating event in America. It was the longest and most severe depression ever experienced by the industrialized Western world. When the New York Stock Exchange crashed in October 1929, the United States dropped sharply into a major depression. The world was in wide demand for agricultural goods during World War I, but they had rapidly decreased after the war and rural America experienced a severe depression throughout most of the 1920's and even on into the 1930's.

From 1929 to 1939, millions of Americans and investors were out of jobs and money. Due to one of the most tragic times in America, The Great Depression. Many were having trouble finding food for their families and keeping their family farms and homes. Though, not everyone suffered from this depression, it’s said that over 13 million Americans had lost their job by 1932. This time in history made many people depend on one another.

While not immediately dangerous, the Great Depression took a toll on the way Americans’ lived their lives. Due to consumerism and risky stock market strategies, after the economy of the Roaring Twenties and WWI, rural Americans moved to the cites and the agricultural industry started to fail which was a major cause of the Great Depression, along with irresponsible bank structure. Life during this 10 year period of poor economy was tragic for nearly everyone, “three years after the crash, near thirty million Americans had lost their source of income…” (Gregory) Since most families did not have a source of income, they were forced to live in horrible conditions, starving themselves, and being unable to pay for many common necessities.

It is difficult to imagine the horrors of the Great Depression. Many people had to live with nothing for at least 10 years. Parents had to do all they can to support their families. This Depression affected the whole world, yet it had a greater effect on the U.S. During this time the Great Depression had a great effect on Americans.During these times, many could not buy their daily items, many had to live with never using these items again. They had to get rid of clothes, sweets, electricity and got their water from wells. “ People began to cut down on their expenses and to go without new clothes, furniture and other goods” (Hayes). Cutting down these expenses caused businesses to fail. After cutting back on items and items used daily, people learned to live without these items, “ Looking back, I find it amazing what we went without”

The Great Depression lasted from 1929 to 1939 and was the worst economic worsening in the history of the industrial world. It began when the stock exchange crash of October 1929, that sent Wall Street into a panic and drained variant investors. Over future many years, shopper disbursement and investment born, inflicting steep declines in industrial output and employment as failing firms set off employees (Young, William H. and Nancy K. Young). By 1933, once the Depression reached its lowest purpose, some fifteen million Americans were jobless and nearly 0.5 the country’s banks had to fail. Some of the effects include stock market crash, bank failure, reduction in purchasing, american economic policy, smoot-hawley tariff, and drought conditions.

The Great Depression was the worst downfall ever in American history, causing many people grief. “The Great Depression soon began after the stock market crash in October 1929” (The Great depression, 2009). On what is known as “Black Thursday” around 12.9 million shares were traded. Five days later, on “Black Tuesday” 16 million shares were traded, leaving the shares worthless. This led factories and other businesses to slow down production and start firing workers. By 1930, 4 million Americans looking for work could not find it, and that number rose to 6 million by 1931. By 1933 of the Great Depression, 13 to 15 million Americans were unemployed and nearly half of the country’s banks had failed.

“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”