The Impact of the Great Depression
The stock market crash of 1929 sent the nation spiraling into a state of economic paralysis that became known as the Great Depression. As industries shrank and businesses collapsed or cut back, up to 25% of Americans were left unemployed. At the same time, the financial crisis destroyed the life savings of countless Americans (Modern American Poetry). Food, housing and other consumable goods were in short supply for most people (Zinn 282). This widespread state of poverty had serious social repercussions for the country.
America’s agricultural economy had already been suffering for a decade when nature conspired against the country to exacerbate the Great Depression. From 1931 through 1939,
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Everyone scrounged about for small, labor intensive jobs at low wages. Even women and children had to work to subsidize the family income. The recently homeless lived in shantytowns nicknamed “Hoovervilles” after President Hoover who was moving slowly and ineffectually to deal with the Depression (Wikipedia). Little food was available and many had to search garbage heaps and other such locations for any kind of sustenance. The economic crisis had ushered in a decade of unprecedented mass poverty and poor living conditions.
Herbert Hoover, the president in office when the Great Depression hit the country, did very little to ameliorate the devastating situation. Hoover underestimated the seriousness of the crisis, misdiagnosed the causes of the problems, and clung to his beliefs in individual achievement and self-help. His corrective measures, aimed at inflation and the federal budget, were thus damaging themselves. Furthermore, he hesitated to mobilize government resources to aid Americans and instead appealed to private groups to lend a hand (Encarta). Thus Hoover’s administration did little to mitigate the impact of the Depression.
With no relief in sight from the government or anyone else, people’s anger and resentment grew. The Communist party and other socialist groups saw a swell in their numbers. Labor strikes and protests against the government began to erupt. The most notable of these was the Bonus Army March on Washington. More than
By 1933 millions of Americans were out of work. Bread lines were a common sight in most cities. Hundreds of thousands of people scoured the country in search of food, work, or a roof. There was a popular song from this era known as “Brother, can you spare a dime (Modern)?” A big step that happened for the unemployed were the Civilian Conservation Corps, a government program that brought relief to men between the ages of 18 and 25. The Conservation Corps gave jobs to young men in work camps across the country for about $30 per month. There were about 2 million men that took advantage of these jobs (The Great Depression). These men took part in a variety a jobs that included: planting trees, elimination stream pollution, creating game and bird sanctuaries, and conserving natural gases. For the other part of society work relief came in the form of the Civil Works Administration. These jobs consisted of ditch digging to highway repairs to teaching. Civil Works Administration was created in November 1933 and was ceased in the spring of 1934. Roosevelt continued to offer unemployment programs that offered pay (America).
Based on this photograph, the Great Depression had severe effects on many Americans. In this picture, many men are depicted standing, waiting in a very long line outside a restaurant. The line is crowded and very lengthy, and it probably took a very long time for the men to get to the restaurant. Document 4 Based on this document, the Bonus Marchers went to Washington because “they needed their money now.” These men, mostly ex-soldiers, were starving and desolate, and they simply needed money to survive.
Not only that, but those who were working industrial jobs either got fired or had their wages cut. This brought about a mass of unemployment, and made those who were poor even more so. Those who were rich and had a job though, just got even more rich by the minute. Document E shows a chart that outlays the unemployment percentages of farmers and industrial workers. Farmers had a high rate of unemployment, but not as high as that of industrial
The Great Depression emerged in America as the long-awaited “bust” to counteract the “boom” that was the Roaring 20’s. During the 20’s, consumerism skyrocketed in America and the previous progressive notions were left behind as stock markets had grasped American society in the hands of radical capitalism. While many citizens continued to suffer, they began to place their hopes and finances in the stock market to reach the same comfortable income that was the wealthy’s place as stockholders. As the American economy seemed never to be able to come down from its monetary high, it collapsed. With the sudden and irreversible crash of the stock markets and the quickly following crash of banks as people frantically tried to withdraw money that the banks did not have,
The Great Depression is probably one of the most misunderstood events in American history. It is routinely cited, as proof that unregulated capitalism is not the best in the world, and that only a massive welfare state, huge amounts of economic regulation, and other interventions can save capitalism from itself. The Great Depression had important consequences and was a devastating event in America, however many good policies and programs became available as a result of the great depression, some of which exist even today.
James Tobin had once stated, “The miserable failures of capitalist economies in the Great Depression were root causes of worldwide social and political disasters” (James Tobin Quotes). America has yet to face the dark ages of failing economy when the stock market crashed in the days of October 1929. From a child to a dying old man, everyone’s lifestyles were changed dramatically by the events of this period, the Great Depression. The Great Depression resulted from a combination of both domestic and worldwide conditions. The depression had afflicted every inch it passed by. Every nation, especially the United States, now have to find a way out.
The Great Depression was a severe economic panic that drastically impacted the quality of life in the 1930’s. The Depression left in its wake, widespread hunger, poverty and unemployment, as well as a worldwide economic crisis. President Hoover and Congress responded to the downturn with the ideas that individual initiative, voluntarism, and high tariffs, as well as adherence to the gold standard and smaller scale government programs would prove to be adequate in righting the economy. Hoover’s failure to abandon limited government out of fear that the American system would be disrupted (Document D) and his insensitivity to the depth of the crisis led to his increasing unpopularity as well as an increase in severity of the depression. Disheartened
In conclusion, the Great Depression was a downside of America’s history. But, in the dark times, one of our nation’s best presidents came into light. Franklin D. Roosevelt once said “the only thing we have to fear is fear itself”. This meant in those times that Americans were doing more harm than good. When they withdrew their stocks and money from the banks, they were causing more damage to the economy. With shutting down the banks and getting congress together, they were able to solve the dilemmas of the Great Depression through actions taken by federal and state
Franklin D. Roosevelt was a man who besides his intelligence, charm and strong confidence, he was able to sustain the nation through the most overbearing crisis know as the Great Depression as well as World War II. While managing to stay optimistic, Franklin Roosevelt helped people regain faith in themselves. Despite all the chaos going on at the time, “he was met with that understanding and support of the people themselves which is essential to victory (pg. 90).” He was praised for pushing the government to help those who were underprivileged. This was a new beginning in time for Americans known as the New Deal. He told the country to live by; “The only thing we have to fear, is fear itself (pg 90).” Franklin Roosevelt made a very
Since the beginning of the Industrial Revolution early in the nineteenth century the United States ad experienced recessions or panics at least every twenty years. But none was as severe or lasted as long as the Great Depression. Only as the economy shifted toward a war mobilization in the late 1930s did the grip of the depression finally ease.
It was in 1929 that industrial production declined, business slumped and depression began in the United States. Rising unemployment, falling incomes, increasingly underutilized capacity, the drop in primary-product prices and the collapse of international trade combined to depress the international economy. Property owners felt depressed because their assets were shrinking, manufacturers had to deal with declining sales, building operators experienced a crippling lack of demand, railroad managers were desperate because fewer people utilized the rails, farmers were ruined by deflated prices, wage-earners were facing unemployment and successive wage cuts. Everybody fought the long and arduous, discouraging battle for subsistence. This paper
Many people speculate that the stock market crash of 1929 was the main cause of The Great Depression. In fact, The Great Depression was caused by a series of factors, and the effects of the depression were felt for many years after the stock market crash of 1929. By looking at the stock market crash of 1929, bank failures, reduction of purchasing, American economic policy with Europe, and drought conditions, it becomes apparent that The Great Depression was caused by more than just the stock market crash. The effects were detrimental beyond the financial crisis experienced during this time period.
Most people lost their jobs. When they lost their jobs, they weren’t getting any income so they would start losing everything. If you weren’t getting any money to pay for food, you had to try to find a bread line or soup kitchen to get food for you and your family. Bread lines and soup kitchens were either government owned or run by private charities. These sources would often run out of supplies because there were so many people went there because they lost their jobs. Often many families didn’t get anything or barely got anything because it was a mad dash to be one of the first people so you knew you were getting enough food.
The 1930s were a time of hardship for the citizens living in The United States. The Dust Bowl and The Great Depression brought on many substantial consequences that affected many family’s lives entirely. The Great Depression was mainly caused by the stock market crash of 1929. Banks lost all of their money, therefore people were not able to retrieve the money that they had deposited in the bank. The Dust Bowl was a decade long dust storm that brought up farmland and carried it with the winds of the storm. Before the Dust Bowl, the farms had stripped the farmland of the moisture by over using the land, and when the drought came the land became especially susceptible to the winds that came shortly thereafter. The Dust Bowl and the Great Depression made thousands of people in the U.S. unemployed, the typical family dynamic changed, and people lost homes.
The world had faced two main economic problems. The first one was the Great Depression in the early of 20th Century. The second was the recent international financial crisis in 2008. The United States and Europe suffered severely for a long time from the great depression. The great depression was a great step and changed completely the economic policy making and the economic thoughts. It was not only an economic situation bit it was also miserable making, made people more attention and aggressive until they might lose their lives. All the society was frightened from losing money, work and stable. In America the housing market was the main factor of the great depression. A crisis of liquidity appeared in the banks forming a credit crunch. This period was influenced by over extended stock market shortage of water in the south and over trusting. The American government put down some regulations to control the productions which were essential for the war.