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How Did The Great Depression Affect The Economy

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No one can possibly have lived through the Great Depression without being scared by it. No amount of experience since the depression can convince someone who has lived through it that the world is safe economically. Isaac Asimov. In the United States, from 1929 to 1939 they experienced the Great Depression which hugely impacted their economic state. During the Great Depression, the 3 events: the Dust Bowl, the Stock Market Crash, and rampant Deflation were the most devastating factors during this era, worsening the U.S. economy and drastically deteriorating the quality of life for American citizens. Among these effects of the Great Depression, this caused durable innovations to make individual lives and many economic sectors less risky in our …show more content…

While factory workers may have lost their jobs and savings in the crash, many farmers also lost their homes, due to the thousands of farm foreclosures sought by desperate bankers. Dust Bowl and Farming During the Depression | United States History II. From this evidence it is evident that deflation caused farmers to barely profit off of products being sold, showing how businesses closed and struggled the most because of deflation. Understanding this is important to finally understand how the U.S. economy struggled during this era. With citizens having less money to spend on food and clothes, business owners were forced to bring prices down to keep up with deflation, causing low profit margins. Unemployed workers had less money to spend on food, and when they did purchase goods, economic conditions had driven prices so low that farmers earned very little in the way of profit. A now-famous example of the farmer’s plight is that farmers would simply burn corn to stay warm in the winter when the price of coal began to exceed that of …show more content…

It is important to know the perspectives of deflation on citizens and business owners to see the ups and downs of this event to make an informed decision about deflation. It is with good reason to say that deflation has taken the biggest toll on U.S. business owners and their daily lives. But, while the Dust Bowl and the Stock Market Crash were undeniably impactful, deflation’s influence most definitely economically worsened the Great Depression, leaving business owners with diminished profits and a lot of debt. In conclusion, the experiences of U.S. citizens during the Great Depression can be determined as an economically unsafe time and a very stressful time for these folks, especially since they experienced the Dust Bowl, the Stock Market Crash, and Deflation. Deflation, the Stock Market Crash, and the Dust Bowl were identified as events that had the greatest impact on businesses or people's daily life, impacting how much money they had and how much profit businesses made, while also forcing businesses to

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