Essay about The Great Depression Was An Enormous Economic Downfall

934 Words Sep 22nd, 2016 4 Pages
The Great Depression was an enormous economic downfall in the history of the United States and was also a very hard time for many Americans. People had lost jobs, markets went bad, banks had shut down, and unemployment rate has gone up. It had lasted from 1929-1939. During the next several years, buyer spending and investment had dropped, causing a decline in industrial output and raising the unemployment level. It began with the stock market crash on October 29 1929, which had lost millions of investors, markets had lost $30 billion dollars in two days, making it ten times more than the annual budget the U.S had spent for WWI, and prices were dropping until the end of November. Also stocks were only valued at 20 percent. The Down Jones market had gone up to it’s highest peak at 381 then dropped at 42 giving it an 89 percent decline. It didn’t reach back to 381 till 23 years later. Thousands of workers had lost their jobs due to it. Banks were also shutting down and people were trying to get their money from the bank but didn’t have any in it.
President Hoover had enacted The Smooth-Hawley Tariff on June 17, 1930 with imports forming only 6 percent of the GNP. It raised import duties to protect American manufactures from foreign competitors. The 40 percent tariffs only worked out to tax 2.4 percent of citizens. American businesses were no longer investing in Europe and the tariff hasn’t made a huge problem in the United States but was a big threat to Europe. It also…

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