Causes and Chronology of The Great Depression
During the 1920s, after the first World War, America’s economy skyrocketed. American firms invested their profits into expansion and workers wages continued to grow which distributed wealth. By 1929, companies had expanded to the greatest extent and there was no longer any room for further expansion. The economic prosperity of the 1920s quickly came to an end on October 29, 1929 when the stock market crashed on what is known as Black Tuesday. Many people quickly withdrew their money from failing banks. Many banks closed down before some people were even able to withdraw their money. While many Americans became chaotic, President Herbert Hoover believed the economy would heal over time and was reluctant on involving the government in the crisis. He claimed, “Any lack of confidence in the economic future or the basic strength of business in the United States is foolish.” Many workers got laid off and the unemployment rate drastically increased. As matters continued to get worse, Americans struggled to support themselves and their families.
The mid-west was now known as the Dust Bowl and affected many farmers’ crops. The majority of these farmers lost their farms and properties to the bank and were then forced to move. Lots of Americans from the mid-west moved to California in an attempt to find work. They were then known as “Okies”. These Okies were not greeted well by Californian residents because they were accused of stealing current resident’s jobs. The Great Depression also affected people living in rural areas. Many businesses closed down or laid off workers. Families were now unable to buy things which caused the demand for manufactured goods to decline.
The 1930s were also difficult for children and young adults. Many children ran away from home to escape their hardships while others were forced to leave and find a job. In 1944, President Franklin Delano Roosevelt came into office and raised the hope of many American citizens. With his New Deal campaign, he proposed government-based programs and agencies to recruit workers and raise employment while also improving the union. Roosevelt also communicated with Americans through radio by his well known Fireside chats. In these chats, he reassured citizens to have hope and once said “the only thing we have to fear is fear itself”. The economy finally improved once the country entered into World War II.
The mid-west was now known as the Dust Bowl and affected many farmers’ crops. The majority of these farmers lost their farms and properties to the bank and were then forced to move. Lots of Americans from the mid-west moved to California in an attempt to find work. They were then known as “Okies”. These Okies were not greeted well by Californian residents because they were accused of stealing current resident’s jobs. The Great Depression also affected people living in rural areas. Many businesses closed down or laid off workers. Families were now unable to buy things which caused the demand for manufactured goods to decline.
The 1930s were also difficult for children and young adults. Many children ran away from home to escape their hardships while others were forced to leave and find a job. In 1944, President Franklin Delano Roosevelt came into office and raised the hope of many American citizens. With his New Deal campaign, he proposed government-based programs and agencies to recruit workers and raise employment while also improving the union. Roosevelt also communicated with Americans through radio by his well known Fireside chats. In these chats, he reassured citizens to have hope and once said “the only thing we have to fear is fear itself”. The economy finally improved once the country entered into World War II.
An advertisement telling men to find work somewhere else because the company putting up that advertisement already has all the people they need.
A newspaper of the Wall Street Crash and how bad it was back in 1929.