S: The Great Depression
BC: (C) 2011 KBtopwin Graphix Leah M. Craig
FC: The Great Depression | Leah Craig LC 121111 March 11th, 2011 Mixbook Project
1: After the fail in stocks, Americans started spending less and started saving more. This lead to barely any companies producing goods and lost jobs, causing unemployment to go higher and higher. Attempting to recover the US government passed a series of laws that ended up hurting the economy. One of these laws was the Smoot Hawley Tariff, which set a high tax on foreign goods. All this did was lower trading between the US and other countries further hurting the US economy. | The Great Depression was caused by an illusion of stocks. In the 20s the prices of stocks were high. People had money and life was good. As prices soured so did business cost. This inevitably lead to a point where business’ were having a hard time staying both competitive and profitable. All this sparked the beginning of black Tuesday October 29, 1929 the day the stock market crashed.
2: The Great Depression lasted roughly from 1930-1937 Over these seven years, Americans lived poorly, In poor conditions and with little to no money.
3: Life in rural areas during the Depression was hard. Because prices for crops were very low, farmers received little for their efforts. They could not repay the loans that they had taken out on their farms in more prosperous times, and many lost their houses and farms. | As the hard times deepened, the Red Cross and the government set up stations to dispense food and other necessities to the needy. Out in the country, there were not as many food stations, so people had to travel long distances to town to receive supplies. This trip was a hardship because few had transportation or the money to make the trip.
4: The Great Depression badly affected the American people because there wasn’t a welfare system for unemployed workers. Between 1929 and 1933 money income fell 53% and as a result, demand fell considerably. This led to lower levels of production and an unemployment rate of 25% by 1933. The Great Depression did not plunge the USA into instant poverty but it did affect everyone in the country and particular the unemployed. Even those who had jobs were unsure of the future and may have had their wages or working hours cut. | Excessive credit powered the economy in the 1920’s and so during the great depression credit availability began to tighten and loans were called in. Consumers who had taken advantage of the credit during the 1920’s found themselves unable to make monthly payments. Therefore repossessions of houses, cars, household goods, and furniture became common. Consumers who had taken advantage of credit sometimes were unable to meet the monthly payment and repossession of automobiles, furniture and household goods became common. Even the rich did not escape the effects of The Great Depression. Many had substantial investments in the stock market and losses varied depending on how those investments were structured. However, some of the richest families, like the Kennedy family, were virtually unaffected by the great depression. But many found their fortunes wiped out, literally overnight, in the crash. Automobile sales also fell dramatically. In an attempt to encourage sales, General Motors used adverts built around the idea that “one car sale would keep a worker employed for another 3 months”. However not many people had the money to go out and buy new cars during the great depression and those that did had little interest in buying a car simply to a keep a worker employed.
5: Most historians agree that though the New Deal programs helped alleviate some of the problems during the Great Depression, they did not end the economic downturn; World War II was really responsible for the change in the economy. In the late 1930s, the Great Depression was weakening, but many Americans were still poverty stricken. Americans watched as German forces became more powerful and took over neighboring countries. With the invasion of Poland, World War II erupted in Europe. The suffering American economy was given a boost when the fighting countries needed supplies and looked to America to make them. After Pearl Harbor was bombed on December 7, 1941, America entered the war. The U.S. enlisted more than 10 million men and women into the military. Since so many were fighting in the war, it was left for those left at home to work in the factories to make supplies for the war effort. The desperate need for soldiers, pilots, and workers to make ammunition, weaponry, and air/sea craft all contributed to the end of the Great Depression. The economy of America skyrocketed and was on the road to restoration.