Great Depression Effects On American History

History has helped influence the world through many life-changing events. From globalization to historical figures, the most influential occurrences that happen in our daily lives are often the most controversial. One of the most significant cauldrons of the twentieth century was the Great Depression. This circumstance affected millions of Americans and Europeans, causing people to lose their jobs, become homeless, and to be infected with deadly diseases. This period of recession was surely the worst economic downfall that the western world had ever experienced. The Great Depression still continues to affect people to this day, and its impact will certainly never be forgotten. For many Americans, it is difficult to think of American history

Banks and companies went out of business, and banks refused to lend any money. Stock prices fell rapidly in the New York Stock Exchange, causing that to wipe out millions of investors. This caused a surge of panic as people had invested almost all of their money in the New York Stock Exchange. By then, there were millions of people on the streets, because they couldn’t afford to pay their mortgage payments. Environmental issues were not any help either. Severe droughts hit, and farmers could no longer manage their crops, but instead had to leave them to rot. Even though the Great Depression didn’t begin until 1929, for most farmers, it began much earlier, with newer technologies being introduced then. These new technological advancements meant that famers could do a lot more work in less time. With only a few people being able to afford them, many farmers borrowed money. But when the Wall Street market crashed, many farmers faced debt, and those who couldn’t pay tit off had to move off their land, to add onto their burdens. Even though the Great Depression brought many complications with it, this was definitely the most impactful, since famers made up the majority of the labour force at the time. Because of the ongoing financial crisis at the time, many soup kitchens opened up, but there was not enough for everybody. President Herbert Hoover had then come up with the Smoot-Hawley Tariff, which was a bill meant to aid farmers. Things did not follow through though, as he quickly lost control of this bill, and it ended up protecting American businesses instead. The outcome of this financial crisis lead the corporate profits to plunge, going from $2.8 billion in 1929 to $2.6 billion in 1930 ( Smiley, 1). 15