The Great Depression In The United States During The 1920's-1930s

The Great Depression was a critical time for the United States During the 1920’s-1930s. A big majority of the United States was effected. The unemployment rate rose to new heights from a mere 2.4 percent in 1927 to 25 percent. Millions of people were struggling to make ends met that many businesses laid off workers or started to underpay workers. People couldn’t use their savings due to banks giving too much money away without having enough money on reserve. Banks didn't have enough money in reserve was due to the fact that they gave too much credit away and worried investors sold to many stocks (16,410,030 shares). The current president during the first part of the Great Depression President Hoover wasn’t providing enough assistance to Citizens. President Hoover did not want to help the citizens because he believed that if that stepping into business and controlling the value of currency would America into socialism. He also believed by intervening he would destroy the foundation of what the America was built on. The Great Depression was actually the best thing that …show more content…
Before the Great Depression banks were flourishing due to banks handing out loans which people used to invest automobiles and other things. Many people invested into the stock market. But on October 29, 1929 (Black Tuesday) the stock market crash. In the article “The Causes Of The Great Depression” written by Many worried investors withdrew their deposits into cash, forcing banks to liquidate loans which often lead to bank failure. Many people ended up losing all if their life-saving in a single day. During the great depression The banking system failed miserably due to not keeping people's money secure but in 1933 when President Franklin D. Roosevelt was in office he passed the Banking Act of 1933 (Glass-Steagall), which would make sure the banks would keep people's money secure up to a certain