After World War I America 's economy was booming. People everywhere were making money and spending it all on electronics, movies, cars, music, and late night parties. The twenties were a time when no one had a care in the world and just enjoyed the luxury lifestyle. But while everyone enjoyed the new amenities and frivolous spending, no one knew how the stocks were affecting the banks. Most people were extremely overjoyed with all the money coming in, it hadn’t occurred to them what problems were happening. The false prosperity and overproduction of merchandise lead people to make irresponsible spending choices for their financial stance, as a consequence, it affected people’s social lives, the banks, and unemployment across America. It was
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Most of the public went from affording all the amenities, to scrounging around for food along with other household objects. According to About the Great Depression, the crime rate skyrocketed from all the angry, hungry, unemployed people trying to put something on the table for their family. Not only did petty thefts become a frequent recurrence, but so did suicide and prostitution. The mental state of society completely shifted. The Great Depression didn’t affect everyone the same way. While most of America fell into a murky pit of overwhelming sadness, others were still booming with wealth. Many rich people weren’t even aware of the suffering happening to others, and felt no impact of the depression.
The employment rate plummeted at the beginning of the Great Depression, and oscillated for many years. Only 40% of Americans kept a steady job (About the Great Depression). “To get money during this time, we was farming and in the wintertime we 'd go on construction jobs.”
(Spencer T.) Americans had to scrounge around and work hard to get money and food during this time. The number of employees on the federal government payroll increased substantially during the Great Depression. The creation of the Social Security Administration and the National Labor Relations Board were among the factors that led to an …show more content…
This crash had a lot of effects on the supply and demand of products. Stocks were bought and sold on stock exchanges, and the most noted for was the New York Exchange, on Wall Street. Throughout the twenties stock prices more than quadrupled in value (PBS). Investors were convinced that stocks were a keen way to become rich, and took it upon themselves to invest money in the market. That’s why many people in America were affected directly by the Stock Market Crash of 1929. Around 1932 and 1933, America hit rock bottom, down to 80% from their highs in the late 1920’s (PBS). New investments could not be financed through the sale of stock because no one would buy into the new stocks. The most important effect of the Great Depression happened with the troubling disorder in banks across the country. They tried to collect on loans made to the stock market investors whose holdings were now worth nothing. Worse, many banks themselves invested money on stocks. When the word spread that banks’ worth contained huge uncollectable loans, depositors rushed to withdraw their savings. In all, 9,000 banks failed during the decade of the 30’s. It 's estimated that 4,000 banks failed during the one year of 1933 alone. (Clark, D.). Banks were unable to raise funds from the Federal
Most of the public went from affording all the amenities, to scrounging around for food along with other household objects. According to About the Great Depression, the crime rate skyrocketed from all the angry, hungry, unemployed people trying to put something on the table for their family. Not only did petty thefts become a frequent recurrence, but so did suicide and prostitution. The mental state of society completely shifted. The Great Depression didn’t affect everyone the same way. While most of America fell into a murky pit of overwhelming sadness, others were still booming with wealth. Many rich people weren’t even aware of the suffering happening to others, and felt no impact of the depression.
The employment rate plummeted at the beginning of the Great Depression, and oscillated for many years. Only 40% of Americans kept a steady job (About the Great Depression). “To get money during this time, we was farming and in the wintertime we 'd go on construction jobs.”
(Spencer T.) Americans had to scrounge around and work hard to get money and food during this time. The number of employees on the federal government payroll increased substantially during the Great Depression. The creation of the Social Security Administration and the National Labor Relations Board were among the factors that led to an …show more content…
This crash had a lot of effects on the supply and demand of products. Stocks were bought and sold on stock exchanges, and the most noted for was the New York Exchange, on Wall Street. Throughout the twenties stock prices more than quadrupled in value (PBS). Investors were convinced that stocks were a keen way to become rich, and took it upon themselves to invest money in the market. That’s why many people in America were affected directly by the Stock Market Crash of 1929. Around 1932 and 1933, America hit rock bottom, down to 80% from their highs in the late 1920’s (PBS). New investments could not be financed through the sale of stock because no one would buy into the new stocks. The most important effect of the Great Depression happened with the troubling disorder in banks across the country. They tried to collect on loans made to the stock market investors whose holdings were now worth nothing. Worse, many banks themselves invested money on stocks. When the word spread that banks’ worth contained huge uncollectable loans, depositors rushed to withdraw their savings. In all, 9,000 banks failed during the decade of the 30’s. It 's estimated that 4,000 banks failed during the one year of 1933 alone. (Clark, D.). Banks were unable to raise funds from the Federal