The Great Depression
Who? Everyday citizens in the United States
What? The Worst Economic Crisis in U.S. History
What? The Worst Economic Crisis in U.S. History
Where? The United States of America
When? 1929-1940
How? Many factors influenced The Great Depression
The Great Depression was a time where the U.S. economy was in the worst condition it has ever been in. There was no one main cause to this disaster, several contributing factors resulted in The Great Depression. The Stock Market Crash in 1929 the most known aspect to the depression. During the period of 1929-1940, various banks closed due to the scramble of people withdrawing money, afraid it would disappear if they didn't.
Also within this time, there were installment plans and modern advertisement that had been established that caused Americans to have the "buy now, pay later" mindset. Some saw this as a great opportunity but in reality, it left many with a hurt wallet. Because they could not physically see the money they were spending, their debt became overwhelming. The fact that so many were participating in this new buying technique, this essentially lead to America's economic decline as well.
While the government was trying to convince the people that everything would be fine, citizens found out the hard way that the prosperity they had promised was actually false. Only the richest of the rich were benefiting and receiving more money than they had previously before the crisis begun. The middle class and lower class hardly gained any additional income. Not to mention, the unemployment rate continued to dangerously escalate (from 1929 3.2% to 1939 17.2%). The government often tried to cover up the severity of these numbers, but the number of people without a job did not decrease for se
When? 1929-1940
How? Many factors influenced The Great Depression
- The stock market crash in 1929
- False Prosperity
- Installment plans and modern advertising
- Bank failures
- Income gaps
The Great Depression was a time where the U.S. economy was in the worst condition it has ever been in. There was no one main cause to this disaster, several contributing factors resulted in The Great Depression. The Stock Market Crash in 1929 the most known aspect to the depression. During the period of 1929-1940, various banks closed due to the scramble of people withdrawing money, afraid it would disappear if they didn't.
Also within this time, there were installment plans and modern advertisement that had been established that caused Americans to have the "buy now, pay later" mindset. Some saw this as a great opportunity but in reality, it left many with a hurt wallet. Because they could not physically see the money they were spending, their debt became overwhelming. The fact that so many were participating in this new buying technique, this essentially lead to America's economic decline as well.
While the government was trying to convince the people that everything would be fine, citizens found out the hard way that the prosperity they had promised was actually false. Only the richest of the rich were benefiting and receiving more money than they had previously before the crisis begun. The middle class and lower class hardly gained any additional income. Not to mention, the unemployment rate continued to dangerously escalate (from 1929 3.2% to 1939 17.2%). The government often tried to cover up the severity of these numbers, but the number of people without a job did not decrease for se
Timeline: (1929-1941)
October 29, 1929: Stock market crashed
1930: Severe drought and Dust Bowl conditions began to ruin farmers' land
1931: Food riots broke out, workers marched on Detroit, and “foreign workers” were deported
January 1932: Congress established the Reconstruction Finance Corporation to lend $2 billion to banks, insurance companies, building and loan associations, and farming organizations
Late 1932: Stocks reached their lowest point
November 1932: Franklin D. Roosevelt beat Herbert Hoover in a landslide
March 1933: Franklin D. Roosevelt took office
1933: The government became much more involved to change the economic disaster in the nation:
November 1936: FDR was elected to a second term as president
April 1938: FDR asked Congress for an additional $3.75 billion to stimulate the still floundering economy
November 1940: FDR was elected to a third term as president
1941: Preparations for World War II stimulated the American economy and effectively brought an end to the Great Depression
October 29, 1929: Stock market crashed
1930: Severe drought and Dust Bowl conditions began to ruin farmers' land
1931: Food riots broke out, workers marched on Detroit, and “foreign workers” were deported
January 1932: Congress established the Reconstruction Finance Corporation to lend $2 billion to banks, insurance companies, building and loan associations, and farming organizations
Late 1932: Stocks reached their lowest point
November 1932: Franklin D. Roosevelt beat Herbert Hoover in a landslide
March 1933: Franklin D. Roosevelt took office
1933: The government became much more involved to change the economic disaster in the nation:
- More than 11,000 of the nation’s 25,000 banks had closed
- Roosevelt announced a three-day “bank holiday” to prevent a third run on banks and to shore up the banking system
- Unemployment reached its highest level, at 25%
- The Civilian Conservation Corp (CCC) was established to put young men to work in federal and state parks
- The National Recovery Administration (NRA) was introduced
- The Federal Deposit Insurance Corporation (FDIC) was established to insure bank deposits
- The Civil Works Administration (CWA) was established to employ up to 4 million people on public works projects
- The Work Projects Administration (WPA) was formed to employ up to 8.5 million people on public works projects across the country
- The Social Security Act was signed into law, financed through payroll taxes
November 1936: FDR was elected to a second term as president
April 1938: FDR asked Congress for an additional $3.75 billion to stimulate the still floundering economy
November 1940: FDR was elected to a third term as president
1941: Preparations for World War II stimulated the American economy and effectively brought an end to the Great Depression