FC: Great Depression
1: What caused the great depression? | The stock market crash of 1929 provoked the banking crisis and business failures that jolted the U.S. economy and destroyed individual fortunes contributed to the great depression | Continued on next page-->
3: Economic trouble in Europe was one of the many factors that brought down the economy. As things progressed and the economy slowly got worse, many people blamed President Hoover for the depression. It was after World War I that the depression started. This was mainly because of the huge war debts that had to be paid after it was over. World trade rapidly declined during 1920s and early 1930s. Foreign consumers were unable to purchase American goods and the American industries relied on these sales to thrive. Rather than easing the severity of the global depression, the U.S. contributed to the economic downturn by placing high tariffs on imported goods. Many banks began to fail also. A huge number of investors were concerned by the rising interest rates, so they began to sell their shares.The dumbing of so much stock on the market jolted investor's confidence and caused prices to plunge. Because investors had owed money they couldn't afford, they couldn't make the payments. This caused banks to start closing and it could cost someone their life savings. Because of this, people began to withdraw their money and banks started to fail.
4: How long did the Great Depression last? | The Great Depression lasted from 1929 to 1939. The Great Depression lasted for ten grueling years
5: Many people lost their jobs. In 1929 about 1.5 million Americans were unemployed. By 1933 that number rose to about 15 million. Around 50% of the city's workforce was unemployed in Chicago. African Americans particularly difficult times. When factories laid of workers, African American workers were the first to go. Many people faced poverty. People were actually fighting for scraps of food. Many people became homeless and gathered in shantytowns which were constructed of packing boxes, scrap lumber and other thrown-away items. Because people couldn't afford to buy farm products, it was harder for farmers to thrive. | What was life like during the Great Depression?
6: Who was affected by the Great Depression? The Great Depression affected pretty much everyone. This included; African Americans, women, farmers, and immigrants.
7: How did the Great Depression end? | President Hoover was not opposed to government intervention in the economy. He called a White House conference to discuss solutions to the crisis. He urged Business, labor, and political leaders to maintain predepression levels of production, employment, and wages. He worked to reconstruct the finance corporation. He created the Reconstruction Finance Corporation in 1932. This corporation was authorized to lend up to $2 billion of taxpayer money to stabilize things. Hoover's policies alone, however, did not end the Great Depression. Other measures such as the Home Lone Bank Act that contributed to the end of the Great Depression.