How Did The United States Respond To The Great Depression?

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From 1929 to 1939 the Great Depression was occurring. This was a time when the economy was really bad & started to decline. Many people believe that there is a chance of another Great Depression occurring soon. The Great Depression was the worst economic downturn that ever occurred throughout history. This may lead to many people become unemployed and the economy becoming worse. The Great Depression started after the stock market crash of October 1929, which wiped out millions of investors. As years passed, consumer spending and investment drastically dropped. This caused employment to decrease and many people were left unemployed because production started to decline. This left stock prices much higher than their actual value. Many companies soon …show more content…

In 1933, about 15 million Americans were unemployed. During this time the country’s banks had failed miserably. Throughout the 1920s, the U.S. economy started to rapidly grow. This made America’s total wealth double between 1920 and 1929. During this time the stock market started to quickly expand. The wages for many people were very low. The economy was starting to struggle because of drought occurring and falling food prices. Many banks had large loans that couldn’t be returned to people. Consumer spending also started to slow down and many goods were starting to pile up. Many of the products weren’t being sold. This made many factory production to decrease and slow down. Even though that was occurring, stock prices were still rising. On October 1929,investors began selling overpriced shares to others and the stock market started to crash. Millions of shares ended up worthless, and those investors who had bought stocks with loaned money, were in debt. The spending and investment led factories and other businesses to slow down production and begin firing their workers. Another Great Depression

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