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The Great Depression Essay

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Alyssa Robertus March 9, 2023 B.3 The Great Depression The Great Depression is notably one of the darkest times in American history. Many American went unemployed and several lost all of their profits due to bank failure; this resulted in many people undertaking poverty. There were many factors that contributed to the Great Depression, but the primary principal was the stock market crash of 1929. At the time, the stock market was a very appealing subject to invest in. To many, the idea of investing a sum of money with the slim chance of making a large profit was prodigious. Many individuals who didn’t have spare money to buy stocks would take out loans from the bank and pay interest on the money that they took out. They would then invest …show more content…

This increased the rate of homelessness because millions of people lost their jobs and had no source of income. The only jobs that were left were taken by white Americans, while African Americans, the elderly and children had to suffer drastic measures and were declined jobs or layed off. The stock market crash also resulted in deflation and international trade collapsing. Consumer spending dropped significantly because no one had hardly any money to spend. During the stock market crash, farms also suffered. In 1930 the Dust Bowl commenced and didn’t end for another ten years. The Dust Bowl hit the hardest in central and southern America and farmers struggled tremendously to stay afloat. The low rainfall and the high temperatures and wind levels made it nearly impossible for one to grow a crop or raise livestock. This had a major impact on the economy because a large source for the country's food and resources was put to a halt. Many farmers ended up migrating to urban areas in search of jobs from the New Deals government

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The agricultural economy was suffering from drought and falling food prices, and the banks had a overload of large loans that could not be liquidated. In the summer of 1929, America’s economy suffered a mild recession. Consumer spending plummeted and the number of unsold products increased, causing factories to slow production of the goods. As a result, stock prices rose so high that there was no way they could be justified by expected future earnings. By this time, people were performing bank runs, this meant that people were going to the banks and withdrawing all their money in fear of losing it when the banks shut down.

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The Great Depression, the worst economic low in America’s history, marked the end of a period that was known as being happy for all. The “Roaring 20’s” as they are often referred to, were a cultural transition in America. After the first World War, Americans celebrated by buying things they couldn’t afford, and investing in stocks (two things that often went hand in hand). During this time period, however, the rich got richer and the poor got poorer. This wage gap is not the only economic issue that can be seen in this period.

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Consumption motivated by avarice was a cause for the Great Depression because luxury was a mass priority. “If he invests in good common stocks and allows the dividend to accumulate... He will be rich... Anyone ought to be rich.” (Raskob, 1929

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Farmers were struggling greatly after the Great Depression because nobody could pay for their crops, and their land was too expensive for them to pay for it. Although, the Federal government created the Agricultural Adjustment Act which stated, “They paid farmers to reduce the amount of crops they planted, in order to cut excess production”(Kantor’s Website). They used the method of supply and demand to help build back up the world of farming. The government would help them pay for the amount of time that they were having to miss farming, but the prices on the crops would increase drastically. These financial crises were lifted off of the

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There was a stock market crash on October 19th 1932. Everybody who had invested in stock had lost all of their money, and savings. Many people were rushing to the banks to get their money out. Stores and factories went out of business and 13 million people were jobless.(source B) People who worked in factories made less than $.10 an hour. There were bread lines all across America.

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The Great Depression was a hard time for the United States. The Great Depression was a huge plunge in the economy. There were many factors that contributed to the Great Depression. The stock market crash was one of the biggest factors in the cause of the Great Depression. Banks started to also crash losing peoples savings and making people panic.

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The Great Depression was one of the most devastating economic crises in the history of the United States. It began in 1929 after the stock market crashed, setting off an economic spiral. Lasting for a decade it caused widespread unemployment, poverty, and social unrest. The economic collapse had devastating effects that had impacted everyday American life, including individual families, to the national economy, and even the government. During this period of time the American people faced a range of challenges including, unemployment, homelessness, starvation, and social inequality.

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During the great depression, the United States faced one of the hardest economic crises the nation has ever seen. Before this, the economy was rapidly expanding, and people all over the country were investing in the stock market. However this was not sustainable, by 1929 many investors had seen the stock market to be overvalued leading them to mass sell their shares (History.com). This resulted in an economic collapse that affected millions of Americans. First, it puts a halt to the workforce causing many people to be unemployed, and unable to put food on the table, people even lose their homes and life savings.

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