The Great Depression was a severe worldwide economic depression that began in 1929 and lasted until around 1939. It was the deepest and longest-lasting economic downturn the Western world had experienced. Although it originated in the United States, the Great Depression caused a drastic decline in employment, output, and acute deflation in just about every country in the world. The Great Depression had a staggering effect on social and cultural aspects, especially in the United States, where it represented the greatest hardship the Americans had faced since the Civil War (Romer and Pells).
The 1920s were a period of optimism and prosperity for Americans. When President Herbert Hoover was inaugurated on 4 March 1929, the stock market was climbing …show more content…
Corporations were skyrocketing and wages were increasing incrementally, resulting in a wider distribution of wealth in the United States. By 1929, companies had expanded to the bubble point. Workers were no longer able to fuel further expansions and a slowdown was inevitable. Stock prices began to decline in September and early October 1929, and on 18 October the fall began. Panic set in, and on 24 October, a record 12,894,650 shares were traded (“Stock Market Crash of 1929”). Leading bankers and investment companies attempted to stabilize the market by buying up great blocks of stock, producing a moderate rally. The bubble eventually burst, and in less than a week, the market dropped by almost half of its recent record highs. On 29 October 1929, Black Tuesday hit Wall Street and consequently, stock prices collapsing completely as investors traded 16 million shares on the New York Stock Exchange in a single day. Billions of dollars were lost which sent Wall Street into panic and wiped out millions of investors; however, it would be far too simplistic to view the stock market crash as the only cause of the Great …show more content…
Roosevelt, who exuded hope and optimism and asserted that he would help “the forgotten man at the bottom of the economic pyramid” (“FDR and the Great Depression”). He pledged himself to a “New Deal” for the American people. Upon winning the election, he sought to reassure the public during his first inaugural address, saying, “...the only thing we have to fear is fear itself” (“FDR and the Great Depression”). At the time of Roosevelt's inauguration on 4 March 1933, the unemployment rate had reached 25% and the banking system was almost at a total collapse (“The Great Depression”). Within days, Roosevelt signed and Congress passed some of the most important programs and institutions of Roosevelt’s New Deal. This included the Agricultural Adjustment Administration (AAA), which was designed to boost agricultural prices by controlling the production of staple crops through cash subsidies to farmers (“Agricultural Adjustment Administration”). Other programs included the Public Works Administration (PWA), which budgeted several billion dollars to be spent on the construction of public works, “... a mean of providing employment, stabilizing purchasing power, improving public welfare, and contributing to a revival of American industry” (“Public Works Administration”). The Civilian Conservation Corps (CCC), which was a relief program that gave millions of young men employment on environmental projects. The CCC
The 1920s were a period of optimism and prosperity for Americans. When President Herbert Hoover was inaugurated on 4 March 1929, the stock market was climbing …show more content…
Corporations were skyrocketing and wages were increasing incrementally, resulting in a wider distribution of wealth in the United States. By 1929, companies had expanded to the bubble point. Workers were no longer able to fuel further expansions and a slowdown was inevitable. Stock prices began to decline in September and early October 1929, and on 18 October the fall began. Panic set in, and on 24 October, a record 12,894,650 shares were traded (“Stock Market Crash of 1929”). Leading bankers and investment companies attempted to stabilize the market by buying up great blocks of stock, producing a moderate rally. The bubble eventually burst, and in less than a week, the market dropped by almost half of its recent record highs. On 29 October 1929, Black Tuesday hit Wall Street and consequently, stock prices collapsing completely as investors traded 16 million shares on the New York Stock Exchange in a single day. Billions of dollars were lost which sent Wall Street into panic and wiped out millions of investors; however, it would be far too simplistic to view the stock market crash as the only cause of the Great …show more content…
Roosevelt, who exuded hope and optimism and asserted that he would help “the forgotten man at the bottom of the economic pyramid” (“FDR and the Great Depression”). He pledged himself to a “New Deal” for the American people. Upon winning the election, he sought to reassure the public during his first inaugural address, saying, “...the only thing we have to fear is fear itself” (“FDR and the Great Depression”). At the time of Roosevelt's inauguration on 4 March 1933, the unemployment rate had reached 25% and the banking system was almost at a total collapse (“The Great Depression”). Within days, Roosevelt signed and Congress passed some of the most important programs and institutions of Roosevelt’s New Deal. This included the Agricultural Adjustment Administration (AAA), which was designed to boost agricultural prices by controlling the production of staple crops through cash subsidies to farmers (“Agricultural Adjustment Administration”). Other programs included the Public Works Administration (PWA), which budgeted several billion dollars to be spent on the construction of public works, “... a mean of providing employment, stabilizing purchasing power, improving public welfare, and contributing to a revival of American industry” (“Public Works Administration”). The Civilian Conservation Corps (CCC), which was a relief program that gave millions of young men employment on environmental projects. The CCC