The Great Depression Essay

1115 words - 4 pages

    In 1929, A Yale University Economist Irving Fisher stated. " The nation is marching along a permanently high plateau of prosperity".(5) 5 days later the stock market crashed and the worst economic downturn in American history called the "Great Depression" began. The Depression started in 1929 and would last for a decade until we entered War World II. The Great Depression affected every part of economy and no job was safe. In 1929 unemployment was at 1.5 million and by 1933 unemployment reached over 13 million which meant 1 out of 4 were out of work (3). Some who were successful businessmen before the stock market crash and now selling pencils or apples on the street corners after the crash .Many business closed their doors, factories shut down and banks failed causing homelessness, poverty and general despair on many Americans. Huge numbers of Americans had their lives upset by the Depression. Tens of thousands of migrant farm workers traveled the nation looking for employment. Farming income fell some 50 percent and people went hungry because so much food was produced that production became unprofitable. Many Americans watched their homes and life savings be lost because of the stock market. Confidence in the market was lost and without that confidence investors pulled out and the market collapsed.(4)
America's unevenly distributed wealth played a role in the stock market crash and slowed the recovery. During the "Roaring Twenties" our country prospered tremendously, but our middle and lower class prospered little compared to the upper class. The upper class profits sky rocked and the distance between the classes grew out of control. In 1929 the top .1% had a combined income equal to the bottom 42 percent (2). Much of the money was in the hands of a few families who saved or invested rather than spent their money on American goods causing a greater supply than demand. Three quarters of the population maded just enough to purchase consumer goods. They relied heavy on credit to make purchases and had no savings to protect them (5). By 1929, some 200 corporations controlled over half of all American wealth (2). Most of the industries that were prospering and using their profits to improve manufacturing to the point by the market crash they were supplying more than the demand. Before the depression successful companies were connected to the automobile or radio industry. The economy became reliant upon these industries to expand and grow and invest. The problem being if one of these industries like automobile declines so does other industries such rubber, metal, and etc. 
Extensive stock market speculation that took place during the latter part that same decade made the economy unstable. In 1925 the market value was $27 billion and by 1929 the market value had grew to $87 billion (5). New investors entering the market, many who viewed it as a get rich quick scheme, and lenders willing to loan them money helped...

Find Another Essay On The Great Depression

The Great Depression( Canada) Essay

1013 words - 4 pages The great depression, a time that was hard for almost all Canadian citizens. A time where Canadians looked towards there government for some form of decisive action that would end the great depression but unfortunately, Canadians only received relief efforts and attempts at protecting our economy both of which where horrible inadequate. As a result, Canadians during this time faced a series of hardships which worsened the human condition

The Great Depression Essay

910 words - 4 pages The Great Depression Many times throughout history, the United States has undergone economic depression. The most recognized period of economic depression is called the Great Depression. The Great Depression is well known because of the seriousness of the stock market crash. The results of the crash were more serious than any other crash throughout American History. The Great Depression caused a change in the nature of the

The Great Depression

1759 words - 8 pages There have been many downturns in America’s economy, but one stands far above the rest. The term for depression refers to long-term severe downturn in economic activity. The Great Depression is, without a doubt, the longest and most severe in American history. When sustained for a long period of time, it’s not surprising that the people affected by an economic depression could begin to feel emotionally depressed. The Great Depression lasted over

The Great Depression

2358 words - 10 pages The Great Depression At the end of the 1920s the world experienced a devastating economic depression that struck countries with market economies. Despite the great depression being mildly experienced in some countries, the United States of America was hit so mind-bogglingly that at its nadir in 1933 an approximate value of 25% of all workers and an overwhelming 37 % of all non-farm workers were completely out of work and thrown to the curbs. The

The Great Depression

553 words - 2 pages The Great Depression "Exploration is the engine that drives innovation. Innovation drives economic growth. So let's all go exploring" ­Edith Widder. The status on America's economy is what the country depends on. In the past, there have been various events that have affected our economy in different ways. The Great Depression of the 1930s was one of the most severe economic failures of all time. However, it was the American people

the great depression

714 words - 3 pages 1 The Great Depression Causes of the Great Depression Many factors played a role in bringing about the depression; however, the main cause for the Great Depression was the combination of the greatly unequal distribution of wealth throughout the 1920's and 30's, and the extensive stock market speculation that took place during the 1930's. These were not only the factors of the great depression, structural weaknesses and the fact that most of the

The Great Depression

1296 words - 5 pages The Causes of the Great Depression The cause of the Great Depression has been debated for many years. The actual cause of the Great Depression is a multitude of factors, there was no single cause. Several reasons for the Great Depression were supply and demand, the banking system, wages of workers, success and failure of business, government policy, excessive speculation in the stock market and the unequal distribution of wealth

The Great Depression

1203 words - 5 pages      The Great Depression was a period, which seemed to go out of control. The crashing of the stock markets left most Canadians unemployed and in debt, prairie farmers suffered immensely with the inability to produce valuable crops, and the Canadian Government and World War II became influential factors in the ending of the Great Depression. The 1920’s meant prosperity for Canada. Canadians living in the 1920’s were

The Great Depression - 664 words

664 words - 3 pages The Great Depression is one of the longest and most severe economic hysterias experienced by the industrialized Western world. During the depression the political, economic, and social institutions in the U.S were in bad conditions. The government, various groups, and individuals sought ways to address the problems that Americans faced. Starting in the United States and later on engulfing nations worldwide, the Great depression that up rose

The Great Depression - 2209 words

2209 words - 9 pages “No one can possibly have lived through the Great Depression without being scarred by it. No amount of experience since the depression can convince someone who has lived through it that the world is safe economically.” Isaac Asimov's is defined simply as terror and pain for all humanity that had to endure through the depression years. He states the fact that it was unpreperable and a shock (Isaac Asimov). This quote is symbolic of one

The Great Depression - 2235 words

2235 words - 9 pages The Great Depression was a time of sadness and poverty for many. It became an unforgettable historical time in American history. The author of the book The Great Depression, Pierre Berton gives a clear view of what happened from 1929-1941. He basically outlines the Depression event by event, explaining what happened where and who was involved. Although many books can tell stories of the depression, I think the author of this book did a good job

Similar Essays

The Great Depression Essay

1279 words - 5 pages Many adolescents, In the Great Depression, received the full affects and suffered. Some were left hungry, impoverished, and hopeless, how are adolescents today compared? The 30’s were a time of great distress for many Americans. Events such as the stock market crash, an economy suffering from being inflated, overuse of credit, a farming crisis, and other events led America to the economic downfall known as the Great Depression. During the great

The Great Depression Essay 902 Words

902 words - 4 pages Two books by different historians paint a largely similar picture of the Great Depression of the 1930s, but have quite different attitudes about this period. The Age of Extremes, The Short Twentieth Century 1914 - 1991, written by Eric Hobsbawm, who experienced the depression first hand, exaggerates somewhat the social suffering of this period. Whereas Britain in the Depression: Society and Politics 1929 - 1939 was written by two much younger

The Great Depression Essay 1004 Words

1004 words - 5 pages The decade known as the Great Depression was an era filled with both hardship and tribulation. Historians continue to debate the root causes of the collapse of the stock market which led the country into depression. Other deride the ineptitude of the Canadian government’s response to the crisis. At any rate, the “Dirty Thirties” was a period of time unlike any other. While those who suffered through it are largely gone, the memory of those dark

The Great Depression( Canada) Essay

1013 words - 4 pages The great depression, a time that was hard for almost all Canadian citizens. A time where Canadians looked towards there government for some form of decisive action that would end the great depression but unfortunately, Canadians only received relief efforts and attempts at protecting our economy both of which where horrible inadequate. As a result, Canadians during this time faced a series of hardships which worsened the human condition