With many Americans sent off to fight in World War II, the recruitment of an available group of laborers from Mexico was seen as the solution to raise the economy and agricultural production while the country was at war. The negative economic impact of this social problem challenged the American families in major ways; lacing economic, social and psychological strains and demands on families (Calavita, 2010). Families’ life savings were lost, families were evicted form their homes forcing them to live in a crowded apartment with other families. One of every four people formerly employed was now unemployed and one of every five individuals was on welfare (Day & Schiele, 2012). Those who were affected the most were the nonwhite families, children and women wage earners. The Great Depression was a serious social problem because it affected the way people lived, worked, their roles in society and in their family, their customs and beliefs. Since the effects of The Great Depression did not discriminate between the wealthy and the poor, it demonstrated that social and economic forces created poverty rather than individual …show more content…
What is known for certain is that there were warning signs. Day and Schiele (2012) discussed that high unemployment, lack of consumer buying, loss of homes and riots when workers could no longer earn a family wage were all indicators that the economy was spiraling down. Aside from the stock market crash in 1929, Romero (2010) stated that the fundamental cause of the Great Depression in the United States was a decrease in spending, which lead to a decrease in production. The financial crisis created uncertainty about future income and caused consumers to not only reconsider the purchase of goods but also put off any purchases. Some economists also believe that international lending and trade assisted in the spiraling of the Great Depression. Since foreign lending had expanded tremendously, the U.S. raised their interest rates so high that it reduced the foreign lending. The effects of reduced foreign lending may explain why the economies of Germany, Argentina, and Brazil fell apart before the Great Depression in the United States (Romero,