The Great Depression
The Great Depression started in the fall of 1929 and ended during World War II in 1941. The Great Depression was the longest and deepest downturn in the history of the United States. Three significant factors caused the Great Depression: the stock market crash of 1929, bank failures, and a drought.
1929: The Wall Street Crash Sparks the Depression
The stock market crash on October 29, 1929, was the most significant factor that caused the Great Depression. Everybody thought that the stock market would keep going up, so they bought stock on margin; buying on margin is buying the stock on the profit you make on the stock. Suddenly the stock market dropped, and investors rushed to sell their stocks to pay off loans, but so few people wanted to buy, then the stock market crashed.
The effect of the stock market crash was significant; billions of dollars were lost,
…show more content…
Roosevelt's "The New Deal" aimed to promote economic recovery and help Americans return to work through federal activism. New Federal agencies attempted to control agricultural production, stabilize wages and prices, and create a vast public works program for the unemployed. The New Deal restored a sense of security by putting people back to work. It made the framework for a regulatory state that could protect the interests of all Americans, rich and poor, and thereby help the business system work more productively.
1934: Dust Storms and Droughts Continue
Giant dust storms continued to spread through the Midwest; they were both huge and powerful. The dust made it hard to breathe and piled up to the point where houses were buried. 1934 saw the most significant and most potent dust storm in history. High-speed winds caused great walls of dust to overtake entire cities and regions. This dust storm was called "Black Sunday." It was said the dust was so thick that people couldn't see their own hands in front of their faces.
1935: Creation of the Works Progress