The Great Depression began with the Stock Market Crash on Black Tuesday, October 29, 1929. The impact of the Great Depression leads to unemployment, poor health and lost homes. Major unemployment rates of the Great Depression were caused by the Stock Market Crash when millions of investors lost everything. Following this, business owners were not able to pay their employees. Because of this employees of companies were not able to afford various services and items. Because of this all business such as gas, oil, food, and insurance companies were not receiving profit. Which lead to a business practice known as “Last hired, first fired,” resulting in a thirty percent unemployment rate by the year 1933. As of the U.S. Census from April …show more content…
According to David C Wheelock, an economist with the Federal Reserve Bank of St. Louis, the “Federal Home loan Bank Bureau” of the nineteen thirties estimated the home foreclosure rate to exceed one percent of home loans between 1931 through 1935. At the height of the great depression the foreclosure rate exceeded one thousand homes per day. Also a result of the great depression the average yearly income fell approximately forty percent from two thousand three hundred to one thousand five hundred dollars a year. Because of the loss income this lead to an increase in foreclosure and in larger cities where home ownership was less common the loss of income resulted in eviction for people who didn’t have houses. Due to the rising number of people that found themselves homeless many people relocated to places like Central park. These places were later known as Shanty towns or hoovervilles. Which were places where groups of people built shacks out of wood, tar paper, cardboard, sheets and other excess materials and items that they could find. Most shanty towns didn’t have plumbing which is a sanitary issue. Also they were not properly constructed for cold or rainy weather. As a result of poor construction, lack of sanitation and malnutrition this environment was a cause of poor