FC: The Great Depression
1: Causes of the Great Depression In the beginning of all this chaos, prices of stocks had skyrocketed. At the same time, businesses were having trouble prospering. Thus, the banks were not receiving the amount of money they needed, so they need to terminate themselves. This was caused by citizens who withdrew their savings from the banks, and kept borrowing more money than the banks could take in, to pay off debts. Also, Black Tuesday can be charged for the Great Depression as well. This caused all the invested money of the citizens to go down the toilet. People started withdrawing from purchasing items and this caused the production rate of items to diminish, introducing unemployment.
2: Although it didn't have a direct role, the fact that a huge drought occured in the Mississippi Valley, brought despair to farmers and to those who were depending on their crops. | With the crops dying, and farmers losing their property because of the unprosperous season, they weren't able to supply the their goods for stocks to the market. There was nothing to buy and everything to support. It was impossible to avoid the crisis.
3: The Great Depression lasted a dreadful and sad 9 years. From 1930 to 1939 people abroad had to struggle, hunger, and most likely cry together.Life was beyond what we could imagine during that time. | In the first 2 years of the Depression, unemployment rose from 5 to 13 million. A 12 year old boy found 'the strongest person he knew', his dad, on his knees crying because of all of it. Hungry children would chew on their hands, nearly drawing blood. Some who were 'fortunate', some middle class families were able to keep their homes by stretching money.
4: The Great Depression was inherit in the lives that people had to live. Some who planned to get married had to put marriage aside. The endeavor to expand one's family was shot down. Men out of work had to depend on wife and kids to make ends meet. | A 1940 survey showed that 1.5 million wives had been abandoned by their husbands. Some women took advantage of this opportunity to work in the workplace. Black women found it easy to become domestic servants, clerks, and other occupations.
5: On a global scale, many countries were impacted by the stock market For instance, Germany was reliant on the loans from America, but since America couldn't even support itself, Germany foundered. The unemployment rate reached 30%. World trade slumped substantially, and South Africa was not able to thrive off the agricultural needs of other countries. And in the U.S. the unemployment rate rose from 9% to 25%.
6: During the Great Depression, every single member of the family had to contribute to make life a little better. Children were taken out of school for example, to work at jobs for a small wage. At the height of the Depression, 2.25 million kids between 10 and 18 were working in factories, mines, canonries, and farms. "Average" women had a husband that still worked, but for less pay. The women had to be creative and plant gardens to conserve money that would be spent on food. Some women went to work outside the home to help make ends meet.
7: With a change in command however, things got better. FDR was bound to introducing the 'new deal' that would progressively bring the U.S. out of poverty. First he had all the banks shut down for a few days, so no further withdraws could be made. Then he had the ones that were financially sound, reopen so this would inspire confidence in the banks. He then had Congress pass the HOLC, which assisted home owners who couldn't meet their mortgage payments. This saved some 1 million American families with the granting of low-interest and long-term mortgage loans. Roosevelt then created the FCA that provided low-interest and long-term loans to farmers. Also allowing farmers to pay off back | taxes, buy back lost homes, and purchase seed, fertilizer, and equipment. Unlike Hoover, Roosevelt reached for direct relief. He used his wife Eleanor and Molly Dewson (Democratic National Committee) to help with the FERA. This administration was created to distribute $500 million in relief aid to state and local agencies. Half of this money went directly to families. Congress then posed the CCC, which sent young men out to army camps and be trained. They planted trees, cleared underbrush, created park trails, and many other things that earned them $30 a month; which was contributed to their families. Roosevelt later poured money into the economy through federal loans and government spending.
8: In 1933, Congress passed the NIRA, to stimulate industrial and business activity and reduce unemployment. To accomplish this, stabilized prices, raised wages, limited work hours, and job provisions would have to bee enforced. To do this the National Industrial Recovery Act would have to create two federal agencies: the Public Works Administration and the National Recovery Administration. Harold Ickes led the PWA. The PWA contracted with private firms to build roads, public buildings, and other public-works projects. Between '33 and '39, the PWA spent over $4 billion on about 34,000 projects. | The NRA encourage that business would draw up codes of fair competition. Business agreed to work together to set hours, prices, production levels, and wages. To assist farmers, he told them to cut production. He reasoned that this drastic cut in production would cause the price of goods to rise, resulting in power to be regained into farmers' hands. The Agricultural Adjustment Act, which was passed by Congress in '33, created the Agricultural Adjustment Administration(AAA). This paid farmers to reduce their output of corn, cotton, dairy products, hogs, rice, tobacco, wheat, and other goods.
9: Cotton, in one year, was reduced by 3 million bales. This reduction skyrocketed prices and gave farmers more money to spend; thus "keeping the ball rolling" so to speak. This was just one avenue that made the economy bloom. Afterwards, the Tennessee Valley Authority was created because there were frequent floods that occured in that area. So this was used to build dams, power stations, provide electricity, flood control, and recreational activities. It combated malaria, illiteracy, and soil erosion. In addition, a second New Deal arrangement was made. Under this was the Social Security Act, that provided unemployment insurance | to workers who lost their jobs, pensions for retired workers over 65, payments were made to people with disabilities, the elderly, and the wives and children of male workers who had died. The REA also was established for Americans who were less fortunate; with electricity, interstate production, and gas.