The Great Depression of the 1930s is a period in history that will never be forgotten all around the world. It is described as the worst economic slump ever to have an effect on the United States, and as a result the rest of the industrialized world. The Depression brought with it a number of consequences for instance a huge decline in the standards of living of the working class, the disintegration of numerous nations' economies and mass political disturbance and division.
The Great Depression was most likely the most distressing economic catastrophe in history of the United States. As the 1920s continued, a number of people were forced to face severe problems that threatened the economy. In spite of the fact that quite a few people became wealthy, several others could hardly scrape up to maintain a satisfactory living standard. Numerous significant businesses struggled to survive. Consumers were caught with deep debts. As the 1930s drew near, it was obvious that the economy was wavering.
The definite cause of the Great Depression is not only the simple Wall Street crash, but there are numerous other factors like the decline in foreign trade, the overproduction of goods as well as the uneven distribution of wealth during the 1920s. Consequently, attempts to discover ways out of this global catastrophe were the source of a great deal of discussions and disagreements for much of the depression period.
The apparent wealth of the late 1920s obscured a lot of weak points that would indicate the commencement of the Great Depression. Numerous events suggested the start of the depression. Industries for instance railroads, textiles, and steel could hardly manage to generate an income. New kinds of transportations like trucks, buses, and private automobiles made it mandatory for quite a few railroad companies to go out of business. Mining and lumbering, which was flourishing throughout World War II, became bankrupt because of the reduction in demand. Since new types of energy were in the process of becoming established (for example natural gas, hydroelectricity, and oil), there was a large decline in the profits generated by the coal industry.
One significant signal was a drastic decrease in the new houses being constructed. That is due to the reason that when housing begins to fall, so do jobs in other industries for example furniture manufacturing. An additional suggestion at the depression is in the farming area. The rising supply of crops decreased its prices. Between 1919 and 1921, the yearly revenue that was generated reduced from $10 million to $4 million (Watkins 356-411).
Sheldon Danziger in his book, “America Unequal” describes the plight of people of the U.S during the Great Depression as they were in debt already because of purchasing goods on credit. By making credit uncomplicated, their debt thickened with each good on credit. Since a number of people had difficulty in paying off their debts, consumers decreased their spendings....