The Great Depression Essay, Research Paper
THE GREAT DEPRESSION
The year of 1929 began a time period of horror in America. It was the
beginning of the great depression. A time in which many lost their
jobs,became homeless,and went hungry. Many people had to live off the
nutrition of weeds or some worked fifty – five hours and only earned seventy -
five cents. The cause of the depression was the stock market crash of 1929
known to investors as Black Tuesday. Black Tuesday is said to be the most
shocking financial event in the history of the united states. Not only did the
stock market prices drop drastically but the business world was brought down
with it. Inflation also rose because of the crash.
The crash that occurred on October of 1929 caused Americans to lose
Thirty billion dollars,and the American dollar value was 90% less than it was
prior to October of 1929. Wholesale and retail food prices dropped 40% and
farm prices dropped over 60%. About four million families were left
unemployed and on relief support only receiving fifteen dollars a month.
Because of the crash the government was required to set new regulations
regarding stock market trade. The reason for this was to attempt to prevent
another stock market crash from happening in the future.
The depression brought about many problems not only did people have to
worry about unemployment they also had to worry about crime. Many
Americans tried to get easy money by taking part in
robberies,kidnappings,and murders. In 1935 criminals out numbered
carpenters four to one, grocers six to one, and doctors twenty to one. In the
mid west, crooks with shot guns and Tommy Gun were a common thing. In
large cities the criminals were making money off of extortion,prositution and
auto theft.
GREAT DEPRESSION TIMELINE
1929
Herbert Hoover became president
Stock market crash begins on October 24
investors call October 29 Black Tuesday
Losses for the month are sixteen billion
congress passes Agricultural Marketing Act to support farmers until they can
get on their feet
1930
By February, Federal Reserve cut prime interest rate 6% to 4%
The smoot-Hawley Tariff passes on June 17
Democrats gain in congressional elections but still don?t have majority
The GNP fails 9.4% and unemployment rate climbs 3.2% to 8.7%
1931
A second banking panic occurs in the spring
The GNP falls another 8.5%
Unemployment rises to 15.9%
1932
This year and next year are the worst of the depression
GNP falls a record 13.4%
Unemployment falls another 23.6%
Congress creates the reconstruction finance corporation
Congress passes the federal home loan bank act
Congress passes the glass steagall act of 1932
1933
Roosevelt inaugurated
Third banking panic occurs
Congress passes the Emergency Banking Bill,The farm credit Act,and
National Industrial Recovery Act
1934
Gnp rises 7.7%
Unemployment falls 21.7%
1935
GNP rises 8.1%
Unemployment falls 20.1%
1936
GNP rises 14.1%
Unemployment falls to 16.9%
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