The Great Depression 1929-39

The Great Depression of 1929-39 One of the longest and hardest downturns in the history of the Western industrialized world is referred to as the Great Depression. These chain of events that took place through 1929-39 effected the economic growth of America tremendously. Within this essay I will be researching key events that made this decade so unforgettable for the people and government of the United States. I will also be explaining the steps taken to get out of the slump.

Stock Market Crashes 1929-A recession was approaching during the summer of 1929 and there were many effects of this slump. Some of these outcomes included the decline of trade and industrial activity or better known as a fall in the GDP. At the same time, stock prices

Unfortunately, despite the positive attitude matters continued to worsen throughout the next three years. In 1930 4 million Americans searched for work but there seemed to be no luck. By 1931 the unemployment had risen to 6 million and the industrial production had dropped by half. (History.com, 2009) In the fall of 1930 the first banking panics began and they weren’t going to be the only ones experienced by America. Investors lost their confidence in being able to make their long term financial obligations. Because of this Investors began to ask for direct deposits in cash which forced the banks to liquidate loans in order to supplement their insufficient cash reserves on hand. (History.com, 2009) By 1933 thousands of banks had shutdown but Hoover attempted to support failing banks and institutions with loans from the government. His thought was that the banks would in return loan to businesses and be able to hire back employees to lower

By this time every state had ordered all remaining banks to close. While this happed the U.S Treasury didn’t have enough money to pay all government workers! But FDR with his confident attitude gave his famous slogan “Only thing we have to fear is fear itself.” Instantly taking action Roosevelt announced a “4 day bank holiday” meaning all banks across the country would clos so the congress can pass reform legislation and then reopen. Within Franklins first 100 days of being in office his administration passed laws that aimed for stability in industrial and agricultural production. His law also strived to create more jobs and trigger recovery. While doing everything possible to better the lives of the citizens Roosevelt also sought to reform the financial system, create the Federal Deposit Insurance Corporation, and the Securities and Exchange Commission. All of these aim to protect depositor’s accounts and to regulate the stock market and prevent abuses like the kind that lead to the 1929