Essay on Great Depression

Submitted By saminap
Words: 631
Pages: 3

The Stock Market Crash of 1929 led the United States into one of the most unforgettable time periods in history- the Great Depression. During this economic disaster, political, economic, and social institutions were in turmoil. In attempt to solve the corruptions brought about by the Great Depression, actions were taken by the government, various groups, and subtly by individuals. Unemployment levels in the United States reached as staggering 25%. This rate was so high due to the decrease in consumer consuming confidence; hence employers had no choice but to decrease their production and lay off workers. With item prices dropping, this made the value of wages higher. The Stock Market Crash of 1929 affected the workers, as shown in Document 1, because the percent of workforce unemployed was rising. In 1929 the unemployment rate was about 5%; however, in it increased to about 25%. Self-employed farmers were also vulnerable during this time. The Great Plain regions of the United States suffered a severe drought accompanied with heavy winds during the 1930s. This caused many farmers to become deprived of food quantity consumption which led their farms to foreclose. Many farmers left their properties and headed west in hopes of acquiring another job. "Hoovervilles," which are country shanty towns were housing for those that couldn't afford to live. People would do anything to keep off starvation, for example, selling apples on sidewalks. In Document 3, Vera, a college-educated woman in NYC never had a job. She lived on a small inheritance, but by the summer 1934 it was gone and the hopes of getting a job was scarce. Vera had no money to pay rent for her furnished room and for food she depended almost entirely on occasional dinner invitations from friends. The crash also affected banks. After the market crashed, people were afraid and paranoid- this led to Black Tuesday. Due to this outcome, many refused to trust financial institutions and so they went to retrieve their money from the banks. In New Jersey, people were trying to withdraw their life savings- unfortunately, often too late. This breed them to close their doors; many of them forever. Documents 1 and 2 are alike because in Document 2, the unemployed people who rushed to withdraw their money increased the rate of unemployment. Savings of many years to thousands of families, were gone, and farmers found no markets for their produce. According to Document 5, President Franklin Delano…