Factors Leading To The Great Depression

Superior Essays
There were many factors that led to the Great Depression like the stock market crash, bank runs, the dust bowl, and the new deal. The Great Depression was an economic downturn between 1929-1939. Many people lost their jobs and did not have enough money to keep a roof over their head. Only the rich could manage while the poor suffered. Both the rich and poor were scared, and the rich even hid their money so no one could take it from them. The whole economy was panicking so people just stopped spending their money unless it was something really important. One of the first things that led into the Great Depression was the stock market crash of 1929. Stocks are shares of a company that a person can buy. In the 1920s, the stock market went through …show more content…
He saw the problems facing America and he had ideas how he wanted to solve them. He was in office less than eight months and the crash took place. There were about 120,000,000 people in the U.S., but only 10,000,000 were actually in the stock market. Since the crash, unemployment was now at 3.2 mlllion, it rose about 1.7 million. “Black skilled workers saw their wages fall much faster than those of similar white employee” (bur 11). Since Herbert was the president, he was the one blamed for not doing anything to help throughout the depression. He told the people that everything would be alright because the worst had passed, but things were just getting …show more content…
This was where the Congress as well as President Franklin Roosevelt passed laws that would help the economy through the depression. One of the first things that Franklin wanted to clear up was the banking crisis. So on March 9th with the help of Congress, they were able to pass the Emergency Banking Act of 1933. The FHA, which is the Federal Housing Administration. This helped people to afford a down payment of houses and debts on mortgages. Another act passed was the FDIC was created. The FDIC stands for the Federal Deposit Insurance Corporation, this insured customers that they well get back at least $250,000 if the bank should fail. Next act that was passed was the FCIC. This stands for the Federal Crop Insurance Corporation, this allowed farmers with the help of the government to manage the crops better. The farmers really needed the help because of the Dust Bowl. Another act that was passed was the Tennessee Valley Authority also known as TVA. This act helped with some of the flooding that was going on as well as the electrical problems. In 1935, the Social Security Act also known as SSA, this gave benefits to people who got into accidents, unemployed, and handicapped. All these acts that were passed were a major contribution to helping people get through the Great Depression. There were still more acts passed by President Franklin and the congress, but these were some of the big ones. In just the first hundred days of Franklin

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