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Great Depression Dbq

740 Words3 Pages

Tatyana Yurova
US Hist 2 Honors
Mr. Alvarez
What Caused the Great Depression? The Great Depression, was a time of suppression. Beginning in 1929 and spreading all throughout the 1930’s, America experienced the largest economic roller coaster that the whole world has ever seen. Soon enough, this economic roller coaster became known as The Great Depression. During the active years of the Great Depression, unemployment rates were at an all-time high; therefore, leaving millions of people with a scarce supply of daily necessities such as food, money, and shelter. The unemployment rates went as high as 25.2% for the civilian labor force, and 37.6% for nonfarm employees (Doc E). The stock market also reached new levels of low, causing an …show more content…

In The Perils of Prosperity, a book written by William E. Leuchtenburg, it states, “With debt no longer regarded as shameful, people bought on installment” (Doc H). Due to the excessive amount of spending made by the American citizens, debt became a normality throughout the American culture. This created a new mindset for the Americans, since they believed debt was no longer a “shame,” they would continue their reckless spending; thus, harming the American economy with ongoing debt. In the same book, William E. Leuchtenburg states, “...consumers bought goods on installment at a rate faster than their income was expanding…” (Document H). It would be nearly impossible to have any type of economic recovery with the impulsive spending habits that the American’s had adapted. The citizens were so prone to spending vast amounts of money that they continued getting deeper and deeper into debt. Even though the American citizens did not make enough money to spend, they were adjust to being in debt, hence why immoderate spending was not looked down upon. Ultimately, this affected not only the citizens, but the American nation as a whole. However, this is not the only case in which the American people …show more content…

Elmer Davis states, “We, it seems, have abolished the business cycle; when people have bought all they can they can afford they go on buying, a little down and the rest in easy payments,” explaining how buyers no longer follow the protocols of the initial “business cycle” (Document M). Instead, they are accumulating their bills to a price that would be nowhere near possible paying in the future. As the spending increased, the debt increased, causing the nation's economic stability to drop a dollar at a time. The negligent spending of American citizens would not only result in debt, but also a drop in social class. Middle-class families with such impulsive-spending mindsets would soon be plunged into poverty, leaving them starving and homeless. Nonetheless, this is not the only case in which Americans carelessly spent their money. In Fortune’s advertisement, it states, “One man pays $35,000 for a boat, another $10,000. One has a special design, the other a stock model” (Document J). This advertisement depicts just how foolish American citizens were when it

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