The Great Depression The Great Depression was the most intensive and enduring economic downturn. It varied nationwide and was the most widespread depression in the 20th century. A historian states, “that twenty percent of all americans made more than fifty of all american money...this uneven distribution of money became an important factor in the crash”(Millicap 28). The Great Depression caused devastating effects of the rich and poor. Profits, personal income, tax revenue all dropped more than 50%. Cities all around the world were hit extremely hard, however some economies was able to recover by the mid-1930’s. Most of the negative effects lasted until the beginning of World War II. Some people disputed this as a symptom of the Great Depression.
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First, it was the stock market crash of 1929. Two months after, stockholders lost more than forty billion dollars, next over nine thousand banks failed. The suffering of most banks occurred from people withdrawing all their monetary funds from their accounts, forcing all financial institutions to close. The client’s that did not think anything of it went bankrupt since banks could not recover. In addition, a reduction in purchasing across the board took place. Individuals stopped purchasing things due to the fear of the economy. This led to reduction of products in and outside of the the work place. By now, the unemployment had rose just a little above 25%. This meant less spending which elevated the economic situation …show more content…
In March, there were 13,000,000 unemployed people and just about every bank was closed. Within his first “hundred days”, he proposed and Congress enacted on a program that would bring relief to the unemployed, recovery to businesses and agriculture(Frank Freidel and Hugh Sidey). Over an eight year period, the government instituted a number of projects and experiments collectively known as the “New Deal”. This program was aimed to restore some of the nations dignity and prosperity. The New Deal also permanently changed the relationship between the federal government and the U.S populace. At the height of the depression, he gave an inaugural speech on March 4, 1933 to over 100,000 people. This speech gave them confidence that they’d elected a man who was not afraid to take bold steps to solve the nation’s problems("New
First, it was the stock market crash of 1929. Two months after, stockholders lost more than forty billion dollars, next over nine thousand banks failed. The suffering of most banks occurred from people withdrawing all their monetary funds from their accounts, forcing all financial institutions to close. The client’s that did not think anything of it went bankrupt since banks could not recover. In addition, a reduction in purchasing across the board took place. Individuals stopped purchasing things due to the fear of the economy. This led to reduction of products in and outside of the the work place. By now, the unemployment had rose just a little above 25%. This meant less spending which elevated the economic situation …show more content…
In March, there were 13,000,000 unemployed people and just about every bank was closed. Within his first “hundred days”, he proposed and Congress enacted on a program that would bring relief to the unemployed, recovery to businesses and agriculture(Frank Freidel and Hugh Sidey). Over an eight year period, the government instituted a number of projects and experiments collectively known as the “New Deal”. This program was aimed to restore some of the nations dignity and prosperity. The New Deal also permanently changed the relationship between the federal government and the U.S populace. At the height of the depression, he gave an inaugural speech on March 4, 1933 to over 100,000 people. This speech gave them confidence that they’d elected a man who was not afraid to take bold steps to solve the nation’s problems("New