Depression: The Causes Of The Great Depression

Although the United Sates had experienced several depression before, none had been as severe nor as long-lasting before October 24, 1929, “Black Thursday”, a world-wide economic disintegration, “The Great Depression”. At first many economists believed it to be a “mild bump” (2010, Allida Black; June Hopkins), in no case, worse than the recession after World War I, but to their surprise’s number rapidly worsened, and the stock market fell dramatically 12.8% (2010, Allida Black; June Hopkins).By the spring of 1933, President Franklin Delano Roosevelt inauguration, the impact was visible across the country. Nearly 25% (2010, Allida Black; June Hopkins) of the labor force were unemployed, the unemployment had risen from an 8 to an 15 million (2010, Allida Black; June Hopkins), conjointly with the gross …show more content…
A number of historians and economists often disagree about the exact causes of the depression (Leuchtenburg, William E.). All throughout the 1930, consumer spending continued to decline, meaning businesses cut jobs, thereby increasing unemployment, schools budgets reduced along with school days and the school year (Leuchtenburg, William E.) (McElvaine, Robert S.). Furthermore, the server drought across America reduced a large amount of agricultural jobs. Many countries worldwide were affected, displacements of the work force and community’s caused families split up or migrate elsewhere in search of work. While the country continued to sink deeper and deeper into the Depression, residents, those who lost their homes, began to build ‘Hoovervilles’ or ‘shantytowns’, built of packing scraps of crates, abandoned cars, or anything they found to be useful (McElvaine, Robert S.) (Leuchtenburg, William E.). Clusters of families would roam the rails as hobos in search for work, but in actuality, there was no place to go that offered relief from the Great