The Great Depression began in August of 1929, when the United States economy first went into an economic recession. Although the country spent two months with declining GDP, it was not until the Wall Street Crash of October, 1929 that the effects of a declining economy were felt, and a major worldwide economic downturn ensued. The market crash marked the beginning of a decade of high unemployment, poverty, low profits, deflation, plunging farm incomes, and lost opportunities for economic growth and personal advancement. Although its causes are still uncertain and controversial, the net effect was a sudden and general loss of confidence in the economic future. The Depression caused major political changes in America. Three years into the depression, Herbert Hoover lost the1932 presidential election to Franklin Delano Roosevelt in a sweeping landslide. Roosevelt's economic recovery plan, the New Deal, instituted unprecedented programs for relief, recovery and reform, and brought about a major realignment of American politics.The Depression also resulted in an increase of emigration of people to other countries for the first time in American history. For example, some immigrants went back to their native countries, and some native US citizens went to Canada, Australia, and South Africa. It also resulted in the mass migration of people from badly hit areas in the Great Plains and the South to places such as California and the North, respectively (see Okies and the Great Migration of African Americans).[5][6] Racial tensions also increased during this time. By the 1940s immigration had returned to normal, and emigration declined. A well-known example of an emigrant was Frank McCourt, who went to Ireland, as recounted in his book Angela's Ashes.
Bread line and soup kitchen->line for people to get food.
Causes of the Depressions:
1. Stock Market Crash of 1929Many believe erroneously that the stock market crash that occurred on Black Tuesday, October 29, 1929 is one and the same with the Great Depression. In fact, it was one of the major causes that led to the Great Depression. Two months after the original crash in October, stockholders had lost more than $40 billion dollars. Even though the stock market began to regain some of its losses, by the end of 1930, it just was not enough and America truly entered what is called the Great Depression.
2. Bank Failures-Throughout the 1930s over 9,000 banks failed. Bank deposits were uninsured and thus as banks failed people simply lost their savings. Surviving banks, unsure of the economic situation and concerned for their own survival, stopped being as willing to create new loans. This exacerbated the situation leading to less and less expenditures.
3. The collapse of land prices.
4. Farmers produced too many foods, so the price has decreased.
5. Too many goods, but no one could buy them.
3. The collapse of land prices.
4. Farmers produced too many foods, so the price has decreased.
5. Too many goods, but no one could buy them.
Effects of the depressions:1. During that era 13 million of people were out of work.
2. Because of the Great Depression, more than 9,000 banks closed during the 1930s, causing millions of people to lose their life savings.
3. The entire American banking system reach the collapse.
4. There were approximately 5,000 of banks went out of business.
5. From 1929 to 1933, the U.S. Gross National Product (which is a measurement of how many goods and services are produced in a year) dropped by 33%.
6. American society were dealing with starvation.
7. Changes were made to the stock market to prevent rampant speculation and further crashes, the most notable of which was that people could no longer buy stocks on margin.
2. Because of the Great Depression, more than 9,000 banks closed during the 1930s, causing millions of people to lose their life savings.
3. The entire American banking system reach the collapse.
4. There were approximately 5,000 of banks went out of business.
5. From 1929 to 1933, the U.S. Gross National Product (which is a measurement of how many goods and services are produced in a year) dropped by 33%.
6. American society were dealing with starvation.
7. Changes were made to the stock market to prevent rampant speculation and further crashes, the most notable of which was that people could no longer buy stocks on margin.