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Depression and its effects
Effects of stock market crash
Depression and its effects
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People Have Never Been more Depressed People did not think that being greedy would cause such pain, but nevertheless it caused more pain and suffering then the world knew was possible. When the Stock market crashed it was the beginning of all economic concerns in the 1930’s. This became a brutal time for everyone. Several tragedies occurred in the economy during the 1930’s including many people losing their jobs and becoming unemployed, people losing their homes and being unable to own land, and people having to wait in the Soup Kitchen line almost all day for food. During the Great Depression many people lost their jobs and were unemployed. The Depression was a huge part of unemployment: “When the Great Depression reached its nadir, some …show more content…
13 to 15 million Americans were unemployed” (history.com). It was not just a couple hundred people that were impacted; it was millions upon millions of people that lost their jobs. This then caused the unemployment rate to skyrocket: “25 percent of all workers and 37 percent of nonfarm workers were completely out of work” (econlib.org). The percentages of unemployment kept on rising and getting worse. In the 1930’s many people lost their homes and were unable to own land. Farmers were really impacted: “Farm families who could not meet mortgage payments saw their homes and farms auctioned off in foreclosure proceedings” (galegroup.com). All these people had to stand by and watch as their home and land was being taken away from them. When the Stock Market crashed “people who had borrowed money to buy stocks lost everything they owned, including businesses, homes, cars, and even clothes” (aprilsmith.org). Being in this state of poverty was frowned upon in many areas. This drove people to do drastic things such as suicide. When people were at their lowest point, some just could not take the humiliation of being in poverty so they decided to end their life instead of dealing with the pressure. Not only some but “many sank into despair and shame after they could not find jobs. The suicide rates increased from 14 to 17 per 100,000” (gwu.edu). This shows that the economic concerns in the 1930’s were not minor but severe. There was one particular suicide that was in the headlines in the newspaper; it was of J. J. Riordan: “On Friday, November 8, Riordan went to his bank, took a pistol from a teller’s cage, went home and shot himself” (The Great Crash 131). Some people saw this as reacting appropriately to the situation they all were in and decided to follow in Riordan’s footsteps, like people jumping off bridges or pouring gasoline on themselves and lighting themselves on fire. Lastly many people had to wait in the Soup Kitchen line all day for food.
For multitudes of people “along with breadlines, soup kitchens became a daily part of the life of millions” (Start With Me 8). When people are used to this life style that is when it starts to get very sad, because people had become so accustom to living in poverty that it became normal. So many people went to soup kitchens that: Women volunteered to work in the soup kitchens that served their communities, improvising cheap recipes for soups that made use of any available local products. Vegetables, boiled together in water, made up the bulk of the soups and stews that were served. As the numbers of people arriving at the kitchens increased more water had to be added to the stews and their nutrition value declined. The soups and stews were cooked in large pots (american-historama.org). No one was getting the nutrients needed to survive and stay healthy. In the 1930’s unemployment and job loss were on the up rise, also people lost their homes and land, lastly people waited in soup lines for food. Although many people blamed Herbert Hoover for the cause of the Great Depression, it was not just solely him. We all contributed to this horrible downfall, by the greed and selfishness we all have inside us. There is no way to take back what has already happened but it should be a lesson learned to all of
us.
In the Roaring Twenties, people started buying household materials and stocks that they could not pay for in credit. Farmers, textile workers, and miners all got low wages. In 1929, the stock market crashed. All of these events started the Great Depression. During the beginning of the Great Depression, 9000 banks were closed, ending nine million savings accounts. This lead to the closing of eighty-six thousand businesses, a European depression, an overproduction of food, and a lowering of prices. It also led to more people going hungry, more homeless people, and much lower job wages. There was a 28% increase in the amount of homeless people from 1929 to 1933. And in the midst of the beginning of the Great Depression, President Hoover did nothing to improve the condition of the nation. In 1932, people decided that America needed a change. For the first time in twelve years, they elected a democratic president, President Franklin D. Roosevelt. Immediately he began to work on fixing the American economy. He closed all banks and began a series of laws called the New Laws. L...
October 29th, 1929 was the day everything changed in the United States. This historical date marked the beginning of the Great Depression. Known for its vast amount of unemployment, destitution, and starvation. With Hoovervilles planting roots all over from Virginia to California during a nationwide devastation, the government decided to intervene. Although there were many solutions to this major problem, the one that affected it the most were the labor reforms. Work relief programs such as the New Deal, the Tennessee Valley Authority, the Federal Housing Administration, the National Labor Relations Act, and the Fair Labor Standards Act helped America recover from its darkest hour.
The stock market crash of 1929 is one of the main causes of the Great Depression. Before the stock market crash many people bought on margin, which caused the stock market to become very unbalanced, which led to the crash. Many people had invested heavily in the stock market during the 1920’s. All of these people who invested in the stock market lost all the money they had, since they relied on the stock market so much. The stock market crash also played a more physiological role in causing the Great depression. More businesses became aware of the difficulties, which caused businesses to not expand and start new projects. This caused job insecurity and uncertainty in incomes for employees. The crash was also used as a symbol of the changing times. The crash lead the American peop...
The stock market crash of 1929 set in motion a chain of events that would plunge the United States into a deep depression. The Great Depression of the 1930's spelled the end of an era of economic prosperity during the 1920's. Herbert Hoover was the unlucky president to preside over this economic downturn, and he bore the brunt of the blame for the depression. Hoover believed the root cause of the depression was international, and he therefore believed that restoring the gold standard would ultimately drag the United States out of depression by reviving international trade. Hoover initiated many new domestic works programs aimed at creating jobs, but it seemed to have no effect as the unemployment rate continued to rise. The Democrats nominated Franklin Roosevelt as their candidate for president in 1932 against the incumbent Hoover. Roosevelt was elected in a landslide victory in part due to his platform called "The New Deal". This campaign platform was never fully explained by Roosevelt prior to his election, but it appealed to the American people as something new and different from anything Hoover was doing to ameliorate the problem. The Roosevelt administration's response to the Great Depression served to remedy some of the temporary employment problems, while drastically changing the role of the government, but failed to return the American economy to the levels of prosperity enjoyed during the 1920's.
In conclusion, Herbert Hoover tried every method he could think of to combat the Great Depression, unfortunately for him, he didn't know what the proper method was. This depression was unprecedented in American History, and Hoover tried to just let boom and bust run its course. He had some good ideas but they were too late in his term, he was too orthodox in his thinking, and he wasn't willing to try anything drastic. Herbert Hoover could have been a great president in a different era, but he just happened to be very unlucky with when he was elected. Hoover may end up being one of the worst presidents in history, but when you look at it closely, he was a victim of circumstance and environment.
The Great Depression is a time in the history of the United States that people have learned and gained knowledge from. Its harsh times and conflicts have been written about in books, seen in movies, talked about on radios, and told to families throughout the generations. Seeing how life was during the 1930s in the movie, The Cinderella Man, was a great eye opener to how the people of this time truly survived and kept their true humanity in times of havoc. The time of the 1930s should be an inspiration to the nation and cause many to do well and live life smart and prosperous.
... a dinner meal can become a luxury. Soup kitchens sometimes become overcrowded and unable to serve everyone in need. As a result, malnutrition is not uncommon among these underprivileged families.
The 1920s were known as carefree and relaxed. The decade after the war was one of improvement for many Americans. Industries were still standing in America; they were actually richer and more powerful than before World War I. So what was so different in the 1930’s? The Great Depression replaced those carefree years into ones of turmoil and despair.
There was a Great Depression in the 1930's. During this time President Hoover was trying to fight against unemployment. The percentage of unemployed people rose 25 percent during this time. With unemployment continuing to rise, President Hoover urged congress to provide up to 150 billion dollars for public works to create jobs.
The Great Depression America 1929-1941 by Robert S. McElvaine covers many topics of American history during the "Great Depression" through 1941. The topic that I have selected to compare to the text of American, Past and Present, written by Robert A. Divine, T.H. Breen, George M. Frederickson and R. Hal Williams, is Herbert Hoover, the thirty-first president of the United States and America's president during the horrible "Great Depression".
During the Gilded Age, “living conditions in the cities were often deplorable, with thousands of families forced to reside in slums that were breeding grounds for typhoid, smallpox, cholera, tuberculosis, and other diseases that swept through the cities on a regular basis.” (“Industrial Revolution”). Poverty and homelessness was not uncommon at the time. The political corruption at the time did not help with this issue either. Political machines governed cities, exploiting the desperate immigrants and gaining their loyalty to stay in power. Starting life anew was difficult and near impossible. Urban life was deplorable during the Gilded Age as demonstrated by the urban slum life, political corruption and difficult life.
By 1929, the U.S. economy was in serious trouble despite the soaring profits in the stock market. Since the end of WWI in 1918, farm prices had dropped about 40% below their pre-war level. Farm profits fell so low that many farmers could not pay their debts to the banks; in turn this caused about 550 banks to go out of business. The nations illusion of unending prosperity was shattered on Oct. 24 1929. Worried investors who had bought stock on credit began to sell it. A panic developed, and on October 29, stockholders sold a record 16,410,030 share. By mid-November, stock prices had plunged about 40%. The stock market crash led to the Great Depression, the worst depression in the nation’s history (until…2014 ☺). It was a terrible price to pay for the false sense of prosperity and national well being of the Roaring Twenties.
October 29th, 1929 marked the beginning of the Great Depression, a depression that forever changed the United States of America. The Stock Market collapse was unavoidable considering the lavish life style of the 1920’s. Some of the ominous signs leading up to the crash was that there was a high unemployment rate, automobile sales were down, and many farms were failing. Consumerism played a key role in the Stock Market Crash of 1929 because Americans speculated on the stocks hoping they would grow in their favor. They would invest in these stocks at a low rate which gave them a false sense of wealth causing them to invest in even more stocks at the same low rate. When they purchased these stocks at this low rate they never made enough money to pay it all back, therefore contributing to the crash of 1929. Also contributing to the crash was the over production of consumer goods. When companies began to mass produce goods they did not not need as many workers so they fired them. Even though there was an abundance of goods mass produced and at a cheap price because of that, so many people now had no jobs so the goods were not being purchased. Even though, from 1920 to 1929, consumerism and overproduction partially caused the Great Depression, the unequal distribution of wealth and income was the most significant catalyst.
Doug O’Brien, director of public policy and research at Chicago-based Second Harvest, says “’we’ve seen a real shift in who we serve. A decade ago, there were almost always homeless, single men and chronic substance abusers. Now we have children and working families at soup kitchens’” (Koch). These families that are feeling the effects of food insecurity will not be the only ones affected by it, but all of America.
Do you know what it’s like to live in a cardboard home, starve, and raise a family in poverty? Unfortunately, most Americans in the 1930s went through this on a day-to-day basis. In 1929 the stock market crashed. Many people lost their life savings; they invested everything they owned in a failing stock market. The country was falling, everyone needed strong leadership and help from the government.