The Great Depression Essay example

Submitted By candy335
Words: 1210
Pages: 5

Depression are part of the economic cycle which includes: Peak, Recession and expansion; sometimes the economy experience a fall after a peak but when this is greater them the previous fall is call a depression and this have severed consequence like : unemployment, inflation and loss of currency value. When a depression strikes the government have to intervene with reforms to help the economy because they are the only ones that can accelerate the healing process. The Great Depression started in the late 1920s, is one of the hardest event that American people had faces since the Civil war; the stock market crash was the beginning of the nightmare because when prices got down the stock panic begins with all the people trying to sell their stocks but no one was buying. The stock market was a saved way to get rich before the great depression, a lot of people lost all their investment and saving, and when bankruptcy with no hope of getting their money back. Many banks had invest their clients’ money in the stock market, they lost part of their money with the crash so they have to close, when people start seeing banks closing the rush to get their money so the people that withdraw their money save part of their investment but a lot of people did not lost all their money because when the bank closes there is no way to get the money back. Business and industries where also affect, because they lost some of their money in the crash and losses more money when banks started to closes, so to keep the business running they have to cut wages and hours so they can survive, a lot of business have to close because they had financial problems which got more severe when people stop consuming because they did not have money to spend, has a consequence all of people where fire from their jobs with no hope of getting back. Farmers where affect by a sand storm call “The Dust Bowl” this happen because the accumulate years of farming and with the effects of the drought cause the grass to disappear has a consequences the land got dry and when high winds pick up the dirt and whirled it for miles, living farmers without their crops. Jennifer Rosenberg says “These small farmers were usually already in debt, borrowing money for seed and paying it back when their crops came in.” Because the farmer did not have their crop they have to give their land to the bank to pay their debt so they were unemployed and homeless. During depression a lot of people lost their jobs and saving so they start to look for jobs in other part of the country, a few people had cars so they use trails has their primary source of transportation. The large portion of people traveling where teenagers but their where men, women and entire families traveling for their new life’s far from home, when there was a job opening a lot of people apply for the job but a few people find jobs, the one that did find jobs have to stay shantytown because that was the only thing they can afford, this houses where built with anything they can find like: driftwood, cardboard, or even newspapers. The farmers that lost they land and job usually headed west to California because their where rumors of a lot of jobs, a few farmers got some seasonal jobs, the conditions for their families where transient and hostile.
Gene Smiley says “The federal government took over responsibility for the elderly population with the creation of Social Security.” They intervene in the create depression with this reform they can have an accurate percentage of the people unemployed and they can help the people in the future because they can provide a support when a crisis strikes again. During the 1932 presidential election, Hoover did not stand a chance at reelection and Franklin
D. Roosevelt won in a landslide. People of the United States had high hopes that President
Roosevelt would be able to solve all their woes. As…