The Depression Of The Great Depression Essay

1158 Words Oct 31st, 2016 5 Pages
The years from 1929 to 1939 were some of the hardest years to live in during American history. This time period is known as The Great Depression. After the stock market crashed in October of 1929, millions of investors were wiped out. Consumer spending began to plummet causing a domino effect across the nation. Once consumer spending began to decline so did investment which eventually led to unemployment levels rising as companies started failing. By the year 1933 the unemployment rate rose to the highest the nation has ever seen. 25% of the population was unemployed. That’s nearly 14 million Americans with no steady income. On top of this, half of the country’s banks had failed and were forced to shut down. “It was not only a time of economic depression but of psychological depression as well”. Herbert Hoover, the president who was in office at the start of the depression, reassured the nation that “the crisis would run its course”. President Hoover was a believer in the government not interfering in citizens lives. He believed that the government should not be responsible for creating jobs or providing economic relief. With gross domestic product dropping from $103.1 billion to $58 billion, consumption dropping to 18% construction by 78% and private investment by 88% the nation was in the worst economic situation ever seen. 9,000 banks closed and 100,00 businesses failed. Many children were not able to go to school as communities were forced to close them down…

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