FC: The Great Depression
1: One of the things that caused the Great Depression was greed. However greed was not the only thing that led to the Great Depression like many claim. The regulation of the economy also led to the Great Depression. When the Federal Reserve increased interest rates in 1929 it would be one of the main causes of the Great Depression. Another major influence was the major bank failures happening across the country.
2: The Great Depression took place from 1930 to 1939. During this time the prices of stock fell 40%. 9,000 banks went out of business and 9 million savings account were wiped out. 86,000 businesses failed, and wages were decreased by an average of 60%. The unemployment rate went from 9% all the way to 25% and there were about 15 million jobless people.
3: During the Great Depression life was very difficult. Americans started spending less because they had no money and they started saving more. This led to less production and less jobs, causing unemployment to go higher and higher. Many Americans didn't have the money required to buy anything. Many lost their jobs and their homes. Life was horrible during the Great Depression because no one could take care of their family.
4: The Great Depression had devastating effects in virtually every country, rich and poor. Cities all around the world were hit hard, especially those dependent on the heavy industry. Construction was virtually halted in many countries. Farming and rural areas suffered as crop prices fell by more than 60%. Facing plummeting demand with few alternate sources of jobs, areas dependent on primary sector industries such as cash cropping, mining, and logging suffered the most.
5: The end of the Great Depression is often marked as December 1941, the same time that America became officially involved in World War 2. The economy had been in expansion since June of 1938, two and a half years before U.S. entry into the second World War and that the economy stopped expanding in February 1945, prior to the end of the war.